(Yicai) Feb. 19 -- China Vanke said it is partnering with financial institutions to launch a pre-real estate investment trust fund that will enable the troubled property developer to recover CNY1.4 billion (USD192 million) in cash, thereby boosting its liquidity.

Vanke has joined hands with New China Life Insurance, Dajia Life Insurance, and Citic GoldStone Fund Management and other financial institutions to set up Wanxin Jinshi Xiamen Housing Rental Equity Investment Partnership, the Shenzhen-based builder announced yesterday.

The heavily-indebted company said the move will help it build a forward-looking, strategic, and sustainable asset securitization platform.

Vanke’s shares [SHE: 000002] closed 1.7 percent higher at CNY7.65 (USD1.06) apiece, lifting the stock’s gain to 5.4 percent since the end of last year. The wider Shenzhen market added 1 percent.

Funded to the tune of CNY1.6 billion, Wanxin Jinshi will acquire all of Xiamen Jiade Hongshi Real Estate, which is owned by Vanke subsidiary Xiamen Wanyikang Investment. Jiade Hongshi has a stake in the Xiamen Boyu Yuan’er Bay Community project and carries liabilities, such as development loans.

Vanke invested CNY160 million (USD22 million) for 10 percent of Wanxin Jinshi. Meanwhile, New China Life, Dajia Life, and Citic GoldStone plowed in CNY959 million, CNY480 million, and CNY1 million (USD137,370) for 60 percent, 30 percent, and 0.1 percent, respectively.

Located on Xiamen Island and with a construction area of 309,200 square meters, the Boyu Yuan’er Bay Community project aims to build 7,724 rental homes. The first phase, amounting to 4,044 units, was completed in June 2023, while the second is scheduled to wrap up next year.

This is the second time that Vanke has announced cash inflows since Xin Jie, who heads its largest shareholder Shenzhen Metro Group, took over as chairman of the developer. On Feb. 10, Vanke said it had secured a CNY2.8 billion (USD385 million) three-year loan from Shenzhen Metro at a 2.34 percent interest rate.

Editor: Futura Costaglione