Chinese property developer R&F is in advanced negotiations to divest its massive One Nine Elms residential and hotel development project in London at a significant discount to its book value in an effort to reduce its debt load.
In a stock exchange announcement, R&F said that it has agreed to sell the massive project to a company 100% controlled by Cheung Chung Kiu, the chairman of Hong Kong investor CC Land.
The sales price was set at HK$1 ($0.13), with the deal involving the assumption of at least $800 mln of debt associated with the 1.1 million ft2 project.
'The Group has expedited its plan to sell development and investment properties in both China and overseas, reallocating capital to addressing financial liabilities and project completions,' the vendor said in a statement. 'Nonetheless,' it added, 'certain sales milestones prescribed in the agreements in relation to the Target Group Loans have become increasingly difficult to meet which, if not met, may result in a default of the Target Group Loans and potentially a realisation value of the Target Group which is significantly less than the consideration for the Possible Disposal.'
The project was bought by R&F in 2018 from Wanda One, a UK subsidiary company of Dalian Wanda. Designed by architects Kohn Pedersen Fox (KPF), the development consists of two towers: the 57-storey City Tower containing 334 homes, and the 42-storey River Tower containing a 203-room Park Hyatt luxury hotel and 103 luxury Park Hyatt-branded apartments.