R&F PROPERTIES (02777) sells 100% equity of Qinhuangdao Jifu Real Estate Development Co., Ltd. to LifeStrength Qinhuangdao.

R&F PROPERTIES (02777) announced that, approved by the board of directors on January 6, 2025, the company entered into a sale framework agreement with Hainan Hangxiao, Beijing R&F City, Beijing R&F Tianchuang, the target company Qinhuangdao Jifu Real Estate Development Co., Ltd., and Power Qinhuangdao regarding the transaction. According to the terms of the sale framework agreement, it includes (i) Beijing R&F City and Beijing R&F Tianchuang will transfer, and Power Qinhuangdao will acquire 100% equity of the target company for zero consideration; (ii) the company will transfer the target company debt held by the company totaling RMB 617,394,474.7 to Power Qinhuangdao for RMB 564,625,000; (iii) Hainan Hangxiao (as the seller) and Power Qinhuangdao (as the buyer) will terminate the property purchase framework agreement; (iv) Hainan Hangxiao will transfer to the company the RMB 564,625,000 owed by Power Qinhuangdao (i.e. the amount paid by Power Qinhuangdao according to the property purchase framework agreement, to be repaid to Power Qinhuangdao after the termination of the property purchase framework agreement); and (v) the debt consideration of RMB 564,625,000 to be paid by Power Qinhuangdao to the company will be fully offset against the same amount to be paid by the company to Power Qinhuangdao after the debt transfer. The announcement stated that the transaction enables the group to utilize the properties held by the group to repay the amounts owed by the group to KINETIC DEV group, thereby reducing the group's cash outflow. It is reported that the target company is mainly engaged in developing the target properties. Prior to the completion of the equity transfer, the target company is 99.7% owned by Beijing R&F City and 0.3% owned by Beijing R&F Tianchuang. The target property is a real estate development project located south of Songshi Golf Course, west of Tuofeng Road, and north of Planned Ciqian Road 7 in Beidaihe District, Qinhuangdao City, Hebei Province, covering an area of approximately 166,900 square meters with a total construction area of 87,989 square meters. The project will include villas, apartments, and commercial buildings. As of the date of this announcement, the target property is currently under construction and is expected to be completed by 2030.