Debt-laden HNA seeks external investors for Hong Kong property

FILE PHOTO: The HNA Group logo is seen in this illustration photo June 1, 2017. REUTERS/Thomas White/Illustration/File Photo

HNA Group Co., one of the world’s most indebted companies, is taking the rare step of inviting outside investors to buy into two Hong Kong plots it purchased for $1.8 billion just over a year ago, as the Chinese conglomerate struggles to secure traditional means of financing.

HNA is seeking minimum commitments of $1 million per investor for a fund whose underlying assets will consist of the plots, according to a marketing document seen by Bloomberg. The fund has two investment classes: the first has a two-year term with annual returns of 9 percent plus 5 percent of any profits from the project in the second year, while the second has a four-year term offering 40 percent of profits to investors in the final year, according to the document dated Tuesday.

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