Property developer Agile Group Holdings has become the next in a long list of cash-strapped Chinese developers to sell properties in order to ease liquidity issues, reports Caixin. Hong Kong-traded Agile entered agreements to sell 14 of its non-core properties for RMB 2.8 billion ($439 million) over the last six months.
The company said it collected RMB 1.15 billion of proceeds from the sales in 2021 and expects to collect the remaining RMB 1.65 billion in 2022, which will be used as general working capital. Agile joined other cash-strapped Chinese developers in selling assets to raise funds and avoid defaulting.
China is encouraging state-owned property developers to buy assets from stressed rivals to limit financial contagion from the debt-stricken industry. The Guangdong government summoned several developers to encourage deals between indebted developers and state-owned companies. Agile was among companies participating the meeting, according to Cailian Press, a media platform affiliated with the state-backed newspaper Securities Times.