Shanghai-based property developer Shimao is putting 34 projects on sale to deal with the liquidity crunch. The company went into default earlier this month on a loan after failing to make a 645 million yuan ($101 million) payment.

Among the latest bid 26.7% of its stakes was in the Guangzhou Asian Games City which were sold to state-owned partner China Overseas Land & Investment or COLI. The transaction was announced on Tuesday, January 25th.

Guangzhou Asian Games City is a residential and commercial complex with a total floor area of 5.9 million square meters. 

According to Reuters, COLI has also acquired a 26.7% stake in a mixed-use complex in the city offered by Guangzhou-based developer Agile Group. Both the stocks from Agile and Shimao sold were all they have of the ​​Guangzhou complex.

Overall, COLI’s stocks in the area will rise to 73.3% from 20% after the deal.

For Shimao, the total assets the company is selling to alleviate its debt include residential, office, commercial, and hotel projects in 17 Chinese cities, such as Beijing, Shanghai, Hangzhou, and the Greater Bay Area in southern China.

According to a report seen by Caixin, for 15 of the projects, Shimao is seeking 6.7 billion USD. The developer has spent a total of 5.14 billion USD on the remaining 19 projects, either joint ventures or projects in the early stages of development.

Kristy Hung, a Bloomberg Intelligence analyst, wrote in a note, “Accelerating asset sales would be the key to keeping Shimao afloat. The developer is set to continue offloading its quality assets.”

Reuters reported from a source that Beijing had taken moves to maintain stability with easing policies, making it easier for state-backed developers to purchase insolvent private companies’ troubled assets.

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