(Yicai Global) April 29 -- Shares of cash-strapped Chinese property developer R&F Properties recovered earlier losses today as a unit of the firm is selling its stake in Thames City, a premium residential development in London, expecting to lose HKD1.84 billion (USD234.5 million).

R&F's stock price [HKG: 2777] closed 2.4 percent up at HKD2.95 (40 US cents) after dropping more than 5 percent earlier. The shares have slumped more than 70 percent in value over the past 12 months.

A subsidiary of the Guangzhou-based property developer will sell its 50 percent stake in a joint venture called Instant Glory International to Victory Trend Holdings for HKD2.7 billion (USD339 million), R&F said in a bourse filing yesterday. The asset includes almost HKD1.7 billion in outstanding loans. The JV was formed by R&F and Hong Kong-based real estate investment company C C Land Holdings. Victory Trend is controlled by C C Land.

Thames City comprises 12 residential holdings and commercial facilities, located in the up-and-coming district of Nine Elms, nearby Vauxhall. The development covers 449,000 square feet (41,700 square meters) and the first phase of three residential towers started pre-sales in 2020.

R&F and C C Land bought the project from another troubled property developer Dalian Wanda Group for GBP470 million (USD588.5 million) in 2017.

In February, media outlets reported that contractor Multiplex had suspended construction at the site of GBP900 million (USD1.1 billion) as R&F had failed to pay workers for several months in a row.

The proceeds from the latest deal will be used to repay the seller's existing loans, according to the filing. The remainder will go toward reducing indebtedness and a part of it will be considered working capital, it added.

R&F once had as many as three projects in London, including Vauxhall Square, Thames City, and Thames One. The plan was to turn the three into London's biggest commercial complexes in nearly a decade. The Chinese firm sold Vauxhall Square for GBP95.7 million (USD120.2 million) in March at a loss of GBP68.8 million (USD86.2 million). But Thames One has kicked off sales.

Editor: Emmi Laine, Xiao Yi