(Yicai Global) Jan. 4 -- Struggling property developer Sunac China plans to sell its stake in a snow park project under development in Shenzhen to its state-owned joint venture partner for CNY3.6 billion (USD523 million).

Sunac will transfer its 51 percent equity stake and debt in Shenzhen Ronghua Land Investment, the JV set up in 2020 to develop the Ice and Snow Culture & Tourism project, to Zhuhai Huafa Properties, it said yesterday. Sunac will have the right to buy back the stake before the snow park opens, the firm added.

The proceeds of the sale will be used to repay the debt Sunac took on to secure the project with principal and interest of about CNY2.1 billion, thereby cutting its total debt burden, the Tianjin-based company said.

Expected to start welcoming the public in November 2025, the snow park covers an area of 436,800 square meters in Shenzhen’s Bao’an district. Once completed, the construction area will reach 1.3 sqm and include residential and office buildings, entertainment facilities, business venues, and hotels.

Since falling into a debt crisis last year, Sunac has sold a number of assets to recoup funds. It unloaded 90 percent of a luxury residential project in downtown Shanghai in November, securing about CNY8 billion

Sunac reported its 2021 financial results on Dec. 9 after an eight-month delay. It had a net loss of CNY38.3 billion (USD5.5 billion) and revenue of CNY198.4 billion (USD28.7 billion), down 14 percent from 2021.

Editor: Futura Costaglione