(Yicai) Feb. 7 -- Guangzhou R&F Properties has sold its heavily indebted unit that is developing a prime real estate project in central London to CC Land Holdings, the Chinese partner in this project, for the symbolic price of HKD1 (USD0.13), relieving the struggling Chinese developer of USD800 million in debts.

R&F will transfer its entire stake in and all the debts of its subsidiary responsible for the development of One Nine Elms to London One, a company owned by CC Land Chairman Cheung Chung Kiu, the Guangzhou-based firm said in a filing yesterday.

The unit is developing a number of landmark projects in the UK capital including River Tower and City Tower, which comprise 437 luxury apartments and a hotel, and will wrap up work on these projects in April.

R&F and CC Land bought two projects, One Nine Elms and Thames City, from cash-strapped developer Wanda Group in 2018. But, facing a liquidity crunch, R&F sold its 50 percent stake in Thames City to Hong Kong-based CC Land in April 2022 for HKD2.7 billion (USD345 million).

R&F is steadily resolving its debt issues. In November last year, the firm succeeded in rolling over eight of its onshore bonds worth CNY13.5 billion (USD1.9 billion). And in July 2022 it extended the maturity on all 10 of its US dollar bonds by three to four years and finished restructuring over USD4.9 billion of senior notes.

R&F’s share price [HKG:2777] closed down 2 percent at HKD1 (USD0.13) today.

Editor: Kim Taylor