R&F sells another Nine Elms scheme at major loss

Chinese developer R&F is selling off another major scheme in Nine Elms, SW8, at a significant loss. The troubled developer has sold out of its 50% stake in Thames City, a 1.7m sq ft mixed-use project which is currently under construction. The company said it expects to make a loss of about HK$1.84bn (£190m) on the disposal. It will sell the property to Cheung Chung Kiu, chairman of CC Land Holdings, the project’s joint venture partner. The project, located south of Nine Elms Lane, comprises 12 residential buildings, a park and other facilities. R&F and CC Land bought the project from Dalian Wanda Group for £470m in 2017. The project’s main contractor, Multiplex, downed tools in Nine Elms earlier this year over a payment dispute. Work resumed two weeks later following an agreement between both parties. The proceeds from the latest deal will be used to repay the seller’s existing loans, according to the filing. The remainder will go towards reducing indebtedness and a part of it will be considered working capital. R&F once had three projects at the site, including Vauxhall Square, Thames City, and Thames One. It had hoped to turn the three into one of the capital’s biggest commercial complexes in nearly a decade. But the Chinese firm sold Vauxhall Square in March at a loss of £68.8m, after the Chinese government forced housing developers to start reducing debt following a surge in liabilities in the sector. To send feedback, e-mail alex.daniel@eg.co.uk or tweet @alexmdaniel or @EGPropertyNews View market analytics in Nine Elms on EG Radius >>