Chinese led HNA finally sells asset to Jacob Chetrit. His children Michael and Simon were also involved in the deal.
Jacob Chetrit have closed on their acquisition of 850 Third Avenue from HNA Group for $422 million. The office property spans 617,000 SF, and is located between East 51st and 52nd Streets.
Political backdrop: The embattled Chinese conglomerate was one of the most active foreign players, pumping in $45 billion in global investments in the last three years. In order to shed part of its $100 billion debt, the Chinese firm has already sold more than $10 billion worth of real estate in Australia, New York, and Hong Kong.
Dig Deeper: President Xi Jinping has reasserted the government’s control over the economy. As he prioritizes reining in China’s overheated financial sector, he has tightened his grip on the struggling HNA. All businesses in China are ultimately subordinate to the Chinese Communist Party and ‘President for Life’ Xi Jinping.
Worth Noting; Minority owners, MHP Real Estate Services and ATCO Properties also sold their stakes in the building, according to Bisnow.
Flashback: HNA paid $463 million for the property in 2016.