(Yicai Global) March 15 -- Shares of R&F Properties fell after the Chinese developer said it plans to sell its UK unit at a loss to raise capital and pare its debt-to-assets ratio.

R&F [HKG: 2777] closed down 4.3 percent at HKD2.69 (34 US cents) today, after earlier gaining nearly 5 percent.

A unit of R&F will sell R&F Properties VS to a subsidiary of Chinese developer Far East Consortium International for GBP95.7 million (USD124.6 million), the Guangzhou-based company said today, resulting in a GBP68.8 million (USD89.5 million) loss.

London-based R&F Properties VS, which specializes in investment holding, is the legal and beneficial owner of a mixed-use development project in London’s Vauxhall Square. Work has not yet started on the project, which is the firm’s second in the UK capital.

R&F has many short-term debts coming due this year, so it continues to face liquidity challenges and its financing channels are limited, international rating agency Fitch Ratings said in a January report. The builder plans to sell its assets to refinance the maturing bonds, but the execution risks are high because of difficulties in the macroeconomic environment.

R&F is seeking to extend a CNY1.95 billion (USD305.8 million) six-year bond issued on April 7, 2016, which carries a coupon rate of 6.7 percent. The Paper reported yesterday that it will be extended for a year with coupons fully paid and no extra compensation if the holders approve the plan.

Editor: Futura Costaglione