China Vanke plans to sell an unfinished property project once designated as its new headquarters, as part of the developer’s latest effort to divest assets and boost liquidity, reports Caixin. The commercial real estate project in Shenzhen, which spans an area the size of three soccer fields, will go on sale on May 18, according to a land auction statement published Wednesday. It will seek bids starting at RMB 2.2 billion ($305 million). That’s less than the RMB 3.1 billion ($429 million) Vanke paid for the plot in 2017.
State-backed Vanke has become the latest flashpoint in the nation’s property crisis, underscoring the severity of the sector’s challenges. Once China’s largest developer, it has joined a list of companies including Country Garden Holdings in a fight for survival.
The company will exit non-core operations and adjust its model for raising money, Bloomberg reported last week, citing a memo from a shareholder meeting. Vanke said in March that it aimed to reduce interest-bearing debt by more than half in five years. It is also preparing a 130 billion-yuan asset package to use as collateral as it seeks new bank loans, people familiar with the matter said in April.