(Yicai) May 9 -- Shares of R&F Properties surged after the Guangzhou-based property firm sold One Nine Elms, a mixed-use high-rise project in London, to Cheung Chung Kiu, a Chinese property tycoon, for a symbolic price of HKD1 (13 US cents) to reduce its debt.

R&F [HKG: 2777] closed 8.7 percent higher at HKD1 in Hong Kong today.

The major southern property developer today sold the project that consists of two buildings, River Tower and City Tower, to a special-purpose vehicle owned by Cheung which will shoulder at least USD800 million of bond principal, Yicai learned.

The buyer will also assume project loans, the seller announced last month.

The sale is the latest proof of R&F's efforts to improve its financial situation by unloading assets on the home turf and abroad to pay off debts and complete unfinished work. R&F bought the luxury project that was set to be the two tallest residential towers in Europe when construction started in 2017 from Wanda Group in 2018. The 105,000-square-meter project, which was supposed to be ready by last November, has nearly 440 residential units and a hotel.

Cheung is the actual controller of Chongqing-headquartered real estate developer CC Land Holdings.

Editor: Emmi Laine