HNA to vacate HK office space it never used

HONG KONG • As HNA Group Co Ltd’s global ambitions continue to shrink, so too does its need for office space.

The debt-laden Chinese conglomerate is surrendering eight floors of office space in Hong Kong’s business district that it never occupied, according to people familiar with the matter.

Some of the floors in Three Exchange Square in Central are being marketed for new tenants, according to the people, who asked not be named because they’re not authorised to speak publicly.

HNA has sold more than US$17 billion (RM70.55 billion) of assets this year to whittle down one of China’s largest debt piles. It’s jettisoned everything from its stake in Hilton Worldwide Holdings Inc to undeveloped land near Hong Kong’s former airport.

The embattled company is also said to be seeking a buyer for its container-leasing business Seaco, and planning to exit its entire holding in Deutsche Bank AG.

HNA signed a nine-year lease that started in June and was due to run through May 2027, documents lodged with the Land Registry show. While the lease began some three months ago, HNA didn’t move into the building, owned by Hongkong Land Holdings Ltd, or fit out the space, the people said.

A spokesperson for Hong Kong Land said via email that the company doesn’t comment on speculation regarding its tenants or individual leases. A spokesman at HNA declined to comment. — Bloomberg