Beijing News (Reporter Zhang Xiaolan) On February 6, Guangzhou R&F Properties Co., Ltd. (hereinafter referred to as "R&F Properties") announced that on the same day, R&F Properties, a wholly-owned subsidiary of R&F Properties (Hong Kong)**, as the seller, entered into a letter of intent with the buyer, London One Limited, according to which the two parties agreed to enter into a definitive agreement within ten business days after obtaining the consent of the lender.
Pursuant to the definitive agreement, the Vendor will conditionally agree** to the Shares for sale and the Loan for Sale, while the Purchaser will conditionally agree to acquire the Shares for Sale and accept the assignment of the Loan for Sale. Consideration for the shares to be sold1HK$00 will be paid in cash, while the consideration for the loan to be sold will be all of the existing notes to be received by the purchaser pursuant to the Exchange Offer, with a minimum principal amount of US$800 million (equivalent to approximately $62.2).HK$4.7 billion).
As at the date of the letter of intent, the target company, R&F International Property Investment*** ("R&F International Property Investment"), is an indirect wholly-owned subsidiary of R&F Properties. Upon completion of the maybes, the target company will cease to be a subsidiary of R&F Properties and its financial results will no longer be consolidated into R&F Properties' financial statements.
The Target Group (i.e. R&F International Property Investments and its subsidiaries, the same below) owns freehold land and buildings in the United Kingdom known as Market Towers, 1 Nine Elms Lane, London SW8 5NQ, and is principally engaged in the development of the property into a large-scale mixed-use development, which is expected to be completed in April 2024. Upon completion, the property will comprise two towers, River Tower and City Tower, providing a total of 437 private residential units, City Tower providing 57 affordable residences and a hotel within River Tower.
R&F Properties said that in recent years, the group has accelerated its plans to develop and invest in properties in China and overseas**, reallocating funds to address financial liabilities and project completion issues. As a result of this possible event, the consideration will be settled and cancelled by a minimum principal amount of US$800 million (equivalent to approximately US$6.2 billion) of the existing notesHK$4.7 billion) and upon completion, the Target Group Loan will be fully and eventually repaid with funds provided or arranged by the Purchaser, and the Board considers that the Likely Matters will help to reduce the Group's liabilities and interest burden, thereby improving the Group's overall financial position.
Edited by Yang Juanjuan.
Proofreading by Liu Baoqing.