(Bloomberg) -- New World Development Co. sold a shopping mall for HK$4.02 billion ($514 million) as part of its plan to improve financial health by offloading non-core assets.

The company sold all of its interest in D-PARK and its parking space in the Tsuen Wan area in Hong Kong to local developer Chinachem Group, it said in a statement on Friday. The company will continue disposal of assets, it added.

New World has increased its target for offloading non-core assets to HK$8 billion this financial year from HK$6 billion, Chief Executive Officer Adrian Cheng said in an earnings press conference on Thursday. It will also lower operation expenses and repurchase bonds in the future.

Read More: New World to Cut $1 Billion of Non-Core Assets to Trim Debt 

Some of New World’s dollar bonds jumped to the highest since August after the news, according to Bloomberg-compiled prices. A perpetual bond sold by its unit climbed 2.7 cents to 57.9 cents on Friday afternoon, but the level still indicates distress.

The business is expected to face difficulties in its deleveraging efforts, Morningstar Inc. equity analyst Jeff Zhang wrote in a note on Friday. “Execution risk remains, as buyers may require steeper discounts on assets for sale,” Zhang said, adding that the company could pivot to borrowing on the mainland as its funding costs surged to 5.1% for the first half ended in December from 3.8% a year ago.

Shares of New World have sunk 24% this year to reach a 21-year low as investors worry about the company’s high debts.

--With assistance from Dorothy Ma.

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