R&F Properties (2777) will sell a London project for HK$1 to repay the debts of US$800 million (HK$6.24 billion) to a property tycoon Cheung Chung-kiu, the latest attempt by the embattled mainland developers for survival.
According to a statement, the Guangzhou-based builder has entered the letter of intent with London One which is 100 percent indirectly owned by Cheung, who is a friend of R&F chairman Li Sze-lim and the chairman of CC Land (1224).
With a symbolic HK$1 payment, Cheung will take over the project Market Towers on Nine Elms Lane, which offers 437 residential units, 57 affordable housing units and a hotel.
In return, Cheung needs to hand out the notes he held, which involve US$800 million in total.
R&F also made a discounted sale, as the market valuation of the London project is around 1 billion pounds (HK$10 billion), about 38 percent higher than the price.
Notably, it is not the first transaction between Li and Cheung. In 2022, R&F sold 50 percent of its stake in a London project to CC Land for HK$2.66 billion.
Meanwhile, ADIA, as the Abu Dhabi wealth fund is known, has held initial discussions over the potential stake purchase in Zhuhai Wanda Commercial Management Group. ADIA may buy shares from existing holders.
Separately, China Resources Land (1109) was reported to announce the organizational structuring plan to transform the existing seven regions into five and turn 28 regional companies into 20, with the aim to be realized by the end of February, according to mainland media.
