Guangzhou R&F Properties to sell Beijing Hotel for US$79m
Guangzhou R&F has experienced liquidity challenges due to the difficulties faced by China’s property sector.
China.- Guangzhou R&F Properties Co Ltd has reported it will sell Beijing Hotel in China’s capital for a sum of CNY550m (US$79m) as it seeks to boost its liquidity. Guangzhou R&F is the parent company of R&F Korea (RFKR), which is to develop an integrated resort with a foreigner-only casino in Incheon, South Korea.
The RFKR Resor was due to open on March 17, 2023, but South Korea’s Ministry of Culture, Sports and Tourism has granted R&F Properties Co Ltd permission to delay the opening of its integrated resort in Midan City by 12 months.
Guangzhou R&F has been facing challenges in terms of liquidity due to difficulties in China’s property sector. The company had previously reported that it would sell land in Midan to increase funds for its integrated resort project.
On August 31, the company posted an interim loss of CNY6.9bn, compared to a profit of nearly CNY3.1bn in the first six months of 2021. As of June 30, borrowing totalled over CNY134.5bn with close to CNY82.7bn due for repayment in the following 12 months. The group had cash, including restricted cash, totalling CNY15.32bn.
