Guangzhou R&F Properties Co Ltd. said in a filing this week that it sold its Beijing hotel in the Chinese capital for 550 million yuan (US$79 million). The Chinese developer is the parent of R&F Korea (RFKR), which promised to open a foreigner-only casino and integrated resort in Incheon, Korea.
Information on the Beijing property disposal is shown in a filing with the Hong Kong Stock Exchange.
In March, the R&F Korea division received a one-year extension from South Korean authorities to open Midan City Resort [a site pictured in file photo] including a casino in the Incheon Free Economic Zone.
It later emerged that R&F Korea had committed to selling some of the land earmarked for residential use in Midan City to fund the casino resort.
The parent company is struggling in terms of liquidity amid turmoil in the property sector in mainland China.
On August 31, Guangzhou R&F reported a median loss of 6.9 billion yuan, compared with a profit of nearly 3.1 billion yuan in the first half of 2021.
In the report, the group said it had borrowed just over 134.5 billion yuan in total as of June 30. Just below 82.7 billion yuan was due to be repaid within the next 12 months. As of the end of June, the group held total cash, including limited cash, amounting to 15.32 billion yuan.
Nevertheless, on Sept. 2, Guangzhou R&F said it would exercise the option to buy back just over 106.6 million pounds ($122.6 million) for the Hong Kong exchange and on shares and loans from the company engaged in property development at Vauxhall in southwest London, England.
The repurchase will be made by Hong Kong-listed Far East Consortium International Inc, which is involved in a casino project overseas at Queens Warf in Brisbane, Australia, and will be operated by Star Entertainment Group.
Guangzhou R&F did not mention its R&F Korea casino business in its latest interim report.
Guangzhou R&F’s 2021 Annual Report, released on Aug. 18 this year, reiterated that it had acquired the balance of its stake in a previous joint venture with the U.S. casino brand for US$1,000 from Caesars Korea Holdings LLC on Jan. 21 last year for its Incheon initiative.
BY: 파친코