(Yicai Global) Aug. 19 -- Shares in A-Living Smart City Services plummeted as much as 17.2 percent today after its parent firm, indebted Chinese developer Agile Group Holdings, said it will sell some equity in the property management unit at a 16 percent rebate on yesterday’s closing price to raise funds needed to pay off looming debts due this year.

A-Living Smart City’s share price [HKG:3319] closed down 12.2 percent at HKD7.33 (USD0.93) today. Earlier in the day it slumped to HKD6.91.

Agile will sell a 3.45 percent stake in A-Living Smart City at a price of HKD7.01 (USD0.89) per share to raise HKD550 million (USD70 million), the Guangzhou, southern Guangdong province-based developer said.

It will also secure a further HKD207 million (USD26.4 million) in the form of loans from Gongqingcheng A-Living Investment Management, a firm that is owned by Agile employees. Gongqingcheng A-Living will sell some of its holdings in A-Living Smart City and offer the funds raised to Agile as loans. Agile will still hold a 50.9 percent stake in the unit after the transactions.

The proceeds will be used to boost liquidity, and pay off a number of maturing debts, it said. Agile has a USD400 million bond due at the end of the month as well as CNY1.5 billion (USD220.3 billion) in private bonds and CNY1 billion of asset-backed securities that will expire in October, according to financial data provider Wind.

Agile has been busy disposing of assets and actively fundraising to drum up cash amid a tight financing environment and as a cooling real estate market compounded by a string of Covid-19 outbreaks hammer sales.

By selling assets, the firm can instantly improve its cash flow, Agile said. In June, it raised CNY764 million (USD112 million) through the sale of equities it held in a project to Beijing-based Capital Eco-Pro Group. The same month unit Furui Investment Development Partnership secured a year-long extension to a maturing debt.

Editors：Shi Yi, Kim Taylor