Embattled Chinese property developer China Vanke announced on Monday that it has sold a plot of land in Shenzhen for 2.24 billion yuan ($309.23 million). This sale price is more than 27% below what the company paid for the land nearly seven years ago.

China Vanke is striving to raise funds following its statement last month about facing short-term liquidity pressure. The company is among many in China’s crisis-hit real estate sector experiencing a broad-based cash crunch.

The plot was jointly purchased at the reserve price by Vanke’s largest shareholder, state-owned Shenzhen Metro, and Shenzhen Baishuo Yinghai Investment, according to an online filing at a Shenzhen trading center on Monday. This bid was the only one received for the asset, as shown in the filing made after the mainland stock market had closed.

In a statement to Reuters, Vanke indicated that the deal demonstrates its largest shareholder’s support through market-based, legitimate measures and real money. The transaction will help Vanke free up capital from non-core business assets, with 70% of the construction floor area retained by the owners and 30% available for sale.

Vanke had originally purchased the 19,000 square-meter block in late 2017 for 3.1 billion yuan, according to previous documents.

The company has stated its goal to boost cash flow this year through bank financing and additional asset disposals totaling more than 30 billion yuan. Last week, Vanke secured a 20 billion yuan syndicated loan facility from a group of banks led by the state-owned Industrial and Commercial Bank of China. The company also plans to pursue other financing options to enhance its liquidity.

Fitch Ratings downgraded Vanke’s long-term foreign- and local-currency issuer default ratings from ‘BB+’ to ‘BB-‘ on Friday, setting the outlook as negative. This downgrade was due to weaker-than-expected sales performance so far this year.

($1 = 7.2449 Chinese yuan renminbi)

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