HNA Group Co. Ltd. is considering placing a luxury Hong Kong residential asset as collateral to raise funds, the South China Morning Post reported, citing an unnamed source who spoke on condition of anonymity.
The property, House 6 at Twelve Peaks on Hong Kong's Victoria Peak, was placed on the market several months ago but has failed to sell due to a high price tag, according to the paper's source.
While the asking price for the 4,241-square-foot House 6 is not known, the publication noted that a neighboring house owned by Sun Hung Kai Properties Ltd. was recently sold for HK$129,702 per square foot or HK$620 million, after tax rebate. At the same rate, the HNA property may be worth HK$550 million.
According to data retrieved by the publication, House 6 was bought by a company called Fortune Runner Hong Kong Investment in 2015 for HK$506 million, or HK$119,300 per square foot. Three of Fortune Runner's executives are senior executives in HNA Group (International). A source told the publication that Chen Feng, one of HNA's founders and chairmen, usually stays at the property when visiting Hong Kong.
HNA was unavailable for comment, SCMP noted.