Far East Consortium takes scheme off R&F鈥檚 hands for knockdown price
R&F Properties is selling its Vauxhall Square site in London to Hong Kong rival Far East Consortium International.
The parcel of land in Vauxhall has been sold for 拢95.7m at a discount of about 42% to market valuation, R&F said in a statement to the Hong Kong stock exchange.
The 1.43 m sq ft scheme is set to include residential, hotel, office, retail and leisure space.
R&F will sell Vauxhall Square, drawn up by Allies and Morrison, for a nominal 拢1, transferring 拢95.7m of its debt to Far East, according to the terms of their agreement.
Mainland Chinese developers are under pressure to reduce debts and last month it was revealed Multiplex was not expecting to be back up to speed on its stalled 拢1bn One Nine Elms site in London until May while a payment wrangle with R&F is fixed. The contractor is understood to be owed more than 拢50m.
The Battersea scheme, which involves building two residential towers of 42 and 58 storeys high, normally has around 1,200 people on the job but this has more than halved to fewer than 500 since the end of last month while Multiplex and R&F work to sort out a deal.
Speaking about Vauxhall Square, FEC head of development John Connolly said: 鈥淭he site has so much potential, and I am confident we will be able to apply our expertise and experience to deliver a space that responds to the needs of local and new residents alike.鈥�
FEC鈥檚 current schemes include the 63-storey Consort Place in Canary Wharf and the makeover of Hornsey Town Hall in Crouch End, north London, which is being carried out by Ardmore under a design drawn up by Make.
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