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The U.S. government has told Chinese conglomerate HNA Group Co. it has to sell its majority stake in a Manhattan skyscraper whose tenants include a police precinct tasked with protecting Trump Tower, according to people familiar with the matter.
The Committee on Foreign Investment in the U.S., which reviews whether foreign investments in the U.S. represent national-security risks, informed the Chinese company a couple of months ago it had to divest itself of its holding in the building, according to these people. CFIUS, as the agency is known, didn’t explain to HNA why it had to sell the property, one of these people said.
The article goes on to state the following:
At the behest of CFIUS, HNA set up a blind trust and transferred its ownership stake in the building to that trust, said a person familiar with the matter. The trust has its own board of directors, which have a fiduciary duty to the trust, not to HNA.
HNA is now trying to find a buyer for the building to comply with the CFIUS order, though the company wasn’t given a deadline to sell, these people said.
The Chinese conglomerate in 2016, before Mr. Trump’s election, acquired a 90% stake in the 21-story tower on Third Avenue in a deal that valued the building at $463 million, according to public records. The building is a few blocks away from Trump Tower and houses the New York Police Department’s 17th precinct, whose duties include security for Trump Tower. President Trump maintains a residence in that Fifth Avenue building, though he has rarely been there since his inauguration.
A spokesman for HNA said the company has held discussions with officials at CFIUS, but he said the company doesn’t view the situation as a fire sale.
East of Trump Tower, a New Worry Over China’s New York City Properties – Bloomberg https://t.co/jH2A4FeL7D
— Khushi Financial (@khushifinancial) August 10, 2018
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