By Esther Fung 

Chinese conglomerate HNA Group Co. is talking with a potential buyer for its Manhattan building near Trump Tower, which the company was ordered by the U.S. government to sell.

New York-based developer B&L Management Co. is offering to acquire the tower for $452 million, according to a person familiar with the matter. If HNA accepts that offer, it would result in a slight loss for the Chinese conglomerate. In 2016, before Donald Trump's election as president, HNA bought a 90% stake in the 21-story building in a deal that valued the property at $463 million.

The two sides haven't signed a contract, and the talks could fall apart, according to the person familiar with the matter.

An HNA spokesman declined to comment. B&L didn't respond to requests for comment. The sale talks were previously reported by Bloomberg.

The Committee on Foreign Investment in the U.S., which reviews whether foreign investments in the U.S. raise national-security risks, informed HNA Group a couple of months ago it had to sell its holdings in the building, The Wall Street Journal previously reported. The committee didn't explain to HNA why it had to sell the property.

The building, at 850 Third Ave., is a few blocks away from Trump Tower and houses a police precinct that has the responsibility for protecting the Fifth Avenue building.

Chinese investors, including HNA, which have previously bought trophy assets in the U.S., are now selling their holdings in part due to a Chinese government crackdown on some overseas investments, including real estate.

Write to Esther Fung at esther.fung@wsj.com

(END) Dow Jones Newswires

August 17, 2018 14:22 ET (18:22 GMT)

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