Developer R&F Properties to Sell Services Unit to Rival to Repay Debt

Chinese developer Guangzhou R&F Properties Co. Ltd. is selling its property management unit to a bigger rival as well as raising funds from its two major shareholders in an attempt to find cash from alternative sources to repay its debt.

CG Property Services HK — a unit of Country Garden Holdings Co. Ltd., China’s largest property developer by total sales — will acquire Wealth Best Global from R&F Property Services for up to 10 billion yuan ($1.5 billion), according to a filing to the Hong Kong Stock Exchange after the close of the market on Monday. R&F Property Services, which submitted an IPO application in Hong Kong in April for a listing in the third quarter, manages R&F’s various real estate projects.