Embattled Developer R&F Sells Most of Its U.K. Assets
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R&F has reversed its decade-long global expansion as it racks up losses and faces huge debt pile. Photo: AI generated
Guangzhou R&F Properties Co. Ltd. has offloaded nearly all of its overseas assets as the embattled Chinese real estate giant grapples with a worsening liquidity crunch.
The company “has almost entirely monetised key overseas assets for restructuring and liability management” over the past fiscal year, Chairman Li Sze Lim said in the developer’s 2024 annual financial report.
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- Guangzhou R&F Properties has sold nearly all its overseas assets amid severe liquidity issues, reporting a 13.2% decrease in total assets at the end of last year to 290.6 billion yuan.
- Net assets decreased by nearly 40% to 28.5 billion yuan, significantly down from a peak of 92 billion yuan in 2020.
- The company plans to continue asset sales to reduce liabilities, and in 2024, 89.8% of its revenue came from Chinese businesses with net losses narrowing to 17.8 billion yuan.
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What Happened When
- 2017：
- R&F bought more than 70 hotels from Dalian Wanda Group Co. Ltd. for nearly 20 billion yuan.
- As of the end of 2017：
- R&F had built a presence in countries including Malaysia, Australia, Cambodia, South Korea and the U.K.
- By late 2021：
- R&F found itself in a liquidity crunch as new debt rules in the sector and a market downturn took their toll.
- March 2022：
- R&F defaulted on domestic debt for the first time.
- Between 2022 and 2024：
- R&F sold several projects in London.
- In 2024：
- R&F generated revenue of 17.7 billion yuan, 89.8% of which came from China, and net losses narrowed 10.8% to 17.8 billion yuan.
AI generated, for reference only
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