Again? R&F Properties To Sell Vauxhall Square Scheme For £108M For A Second Time

R&F Properties is to sell Vauxhall Square, Nine Elms.

R&F Properties has agreed to sell Vauxhall Square, London to a fund managed by Hong Kong-based Flow Capital for £108.2M, the Chinese developer has announced in a filing with the Hong Kong Stock Exchange.

R&F Properties will resell the mixed-use project just a month after exercising an option to repurchase the development from Far East Consortium, according to Mingtiandi.

Flow Capital is an affiliate of asset management firm Astera Capital Partners, founded by New World Development CEO Adrian Cheng.

In early September, R&F announced that it was to repurchase Vauxhall Square for £106.6M after selling the project near Battersea Power Station to Hong Kong-based Far East for £95.7M in a deal that closed in April.

Flow Capital has provided a bridging loan facility covering up to £109M to finance the reacquisition of Vauxhall Square from Far East. Once the deal has been completed, the fund manager will acquire the project from R&F at the pre-agreed value.

After the deal with Flow Capital closes, R&F will manage and operate Vauxhall Square and will market the project to potential buyers on behalf of the new owner.

“The board intends to apply the net surplus from any successful authorised sale to repay the company’s indebtedness and as general working capital of the group,” R&F Chairman Li Sze Lim said in the stock exchange filing.

Located at Nine Elms, Vauxhall Square has planning consent for development of more than 1.4M SF of gross floor area consisting of a mix of residential, hotel, office, retail and leisure space. Construction has yet to start on the main site. 

R&F will also reserve the option to repurchase Vauxhall Square within nine months of completing the sale to Flow Capital.