Chinese debt search takes flight

Chinese conglomerate HNA Investment Holding is looking for a substantial debt package to finance its £215m purchase of Thomson Reuters’ London headquarters at 30 South Colonnade, E14. The owner of Hainan Airlines has appointed JLL’s EMEA capital markets business to seek a loan of up to 75% of the price it paid for the building in August. Thomson Reuters’ lease on the 305,000 sq ft office block is due to expire in 2020 and HNA is expected to seek a five-year loan that would be co-terminus with the lease. The occupier is in talks that could result in it vacating the building in favour of the nearby 5 Canada Square, E14, where it would sublet space from Credit Suisse. Thomson Reuters’ departure could pave the way for redevelopment of the building into a much larger office block. JLL has been instructed to source a senior loan of up to 65% of the building’s value with an additional mezzanine element. European and Asian banks will be approached with the opportunity. At least a portion of the loan is likely to be provided by one of HNA’s existing relationship lenders, which include Bank of China. HNA Investment Holding was established in 1993 and made its debut on the Fortune Global 500 last year with revenues of $25.6bn (£16.6bn). It bought 30 South Colonnade from German open-ended fund manager KanAm. mike.cobb@estatesgazette.com