(Yicai Global) Oct. 29 -- Real estate developer Sunac China Holdings gained around USD554 million between June and this month by selling assets, including its first stake reduction in the operator of real estate agency Lianjia, to improve its financial health.

The proceeds of the transactions should generate working capital for Sunac, the Beijing-based company said in a statement today.

The five-month period included a first for the seller. Sunac has sold 18 million American depository shares in Ke Holdings, resulting in a CNY2.7 billion (USD424.9 million) pre-tax loss, it said. The firm still holds some equity of the owner of brands Lianjia and Beike but it didn't disclose the size of that stake.

The property developer sold the assets to recover its investment as planned, it said. The transfer should support Sunac's focus on its primary business, as well as improve its asset composition, per the announcement.

Sunac acquired a nearly 6.3 percent stake in the Beijing-based property information platform for CNY2.6 billion in January 2017. After that, Tencent-backed Ke went public on the New York Stock Exchange in August 2020, raising USD2.1 billion as the second-largest listing for a Chinese firm at the time. Sunac's shareholding ratio was diluted to 4.4 percent after the initial public offering.

The developer could use some more capital. Sunac has more than USD5 billion in bonds, public data show. The firm hasn’t defaulted on any notes yet, but previous media reports claim the company is cash-strapped.

Ke’s stock price [NYSE: BEKE] fell 1.7 percent in after-hours trading in New York after closing 3.4 percent lower at USD19.65 yesterday, more than three quarters down from its all-time high logged last November.

Sunac's Hong Kong-listed equity price [HKG: 1918] was 1 percent down at HKD16.76 (USD2.20) in the afternoon.

Editor: Emmi Laine, Xiao Yi