'New landmark' project at Kai Tak now under way
Finance | Samantha Wong 17 Oct 2017Construction work at HNA's four residential plots at Kai Tak began yesterday, where the group aims to built about 1,900 flats with a pre-sale launch expected in the third quarter of 2019.
Hong Kong International Construction Investment Management Group (0687), one of HNA's three listed subsidiaries in Hong Kong, has injected HK$728 million into the project. And it has formed an investment fund worth HK$6.03 billion with Hisea International to develop the Kai Tak site.
Hisea is a wholly owned HNA subisdiary and accounts for about 88 percent of the fund. Hong Kong International Construction Investment Management, an indirect wholly owned subsidiary of HNA, holds the remaining 12 percent.
But indications last month were that the Hong Kong Monetary Authority was tightening scrutiny over banks' exposure to HNA Group, which is headquartered in Hailou, Hainan. At least four banks were reportedly stopped from helping fund construction activities.
The group bought the four plots at Kai Tak, which cover about two million square feet, last year, and HNA has said combining all four sites into one development project is making for an integrated residential complex that will become "a new landmark."
The four sites together stand to benefit considerably from being within the development plan for the Central Business District 2 in East Kowloon.
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