(Yicai Global) Jan. 27 -- Shares of China Aoyuan Group dived after the troubled Chinese property developer announced a deal to sell properties in Canada for CAD215 million (USD169 million) to repay loans and said an auditor had resigned.

After sinking as much as 8.1 percent in intraday trading, Aoyuan [HKG: 3883] closed down 5 percent at HKD1.52 (20 US cents). So far this year, the stock has gained almost 8 percent.

Aoyuan unit Brentwood-Willingdon Projects will sell real estate in Burnaby, British Columbia with a total area of 33,815 square meters to Anthem Properties Group, the Guangzhou-based firm said in a stock exchange filing yesterday, citing the agreement signed on Jan. 24.

Aoyuan will make about CAD15.3 million (USD12 million) from the deal, it said, adding that apart from paying back debt, the funds will go to support the daily operations of its Canadian units and meet broader liquidity needs.

In a separate statement, Aoyuan also said that Deloitte resigned as one of its auditors because of a failure to agree on fees.

The homebuilder announced on Jan. 19 that it would not be able to pay off four US dollar senior notes worth USD1.1 billion. Two of them, amounting to USD688 million, were due on Jan. 20 and 23, while the others will mature in June 2023 and June 2024. The company said it will restructure its overseas debt and bring in strategic investment.

The developer has made some progress in attracting investment and expects that to accelerate after the upcoming Lunar New Year holiday, it told Yicai Global.

Aoyuan has disposing of assets in China and offshore to ease its financial situation. It sold and withdrew from projects in Guangdong, Zhejiang, Jiangxi, Guangxi, and Fujian. The firm sold one in Hong Kong for HKD900 million (USD115.5 million) last November and it has been actively working to dispose of other offshore projects in Hong Kong and Australia.

Editor: Futura Costaglione