HNA in talks to sell San Francisco office tower to PE firm Gaw Capital

Signage for HNA Group Co. is displayed atop the company's building in Beijing, China, on Thursday, Feb. 1, 2018. Photographer: Giulia Marchi/Bloomberg

HNA Group Co. is in discussions to sell a San Francisco office building to private-equity firm Gaw Capital Partners, according to a person with knowledge of the talks, as the Chinese conglomerate tries to shed billions of dollars in assets.

Discussions are preliminary and there is no guarantee of any agreement, the person said, asking not to be identified because the talks are confidential. HNA and Gaw Capital didn’t immediately respond to requests for comment.

HNA bought the property — a 28-story tower at 123 Mission Street — for $255 million in August 2016. Any disposal would add to the $6.7 billion in stocks and properties that HNA has sold in the past few months, according to data compiled by Bloomberg. The company has told creditors it will try to sell about 100 billion yuan ($16 billion) in assets in the first half of the year to pay debts and prevent a liquidity crunch.

HNA, which began as regional airline operator, is under pressure to cut a massive debt load it took on in a spectacular buying spree around the world as the Chinese government cracks down on what it has called “irrational” offshore investing by serial dealmakers.

Gaw Capital, based in Hong Kong, operates in the U.S. through affiliate Gaw Capital USA and associate Downtown Properties, which together have more than $2.7 billion in assets under management, according to Gaw’s website. Gaw properties in the U.S. include the Standard Hotel in Manhattan’s Meatpacking district and Embarcadero Square in San Francisco.

Should Gaw seal a deal, it would be the third consecutive Asian owner of 123 Mission in five years. Hong Kong’s Great Eagle Holdings Ltd. paid $179 million for the property in 2013 before selling it to HNA in 2016, according to company filings. Among reasons for the sale, Great Eagle referred to rapid price gains for downtown San Francisco office buildings.

Bloomberg

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.