(Bloomberg) -- China Vanke Co. plans to raise about 1 billion yuan ($138 million) by listing its long-term rental business via a real estate investment trust as the company seeks to generate more liquidity according to people familiar with the matter. 

The company is in discussions to list rental projects operated by its Boyu unit via a REIT in China, the people said, requesting not to be named because the matter is private. The plans are preliminary and could be subject to change, the people said. 

Vanke didn’t immediately respond to requests for comment on Friday. One yuan bond due 2027 edged up, while the company’s Hong Kong shares remained largely flat. 

The Chinese state-backed developer, once considered a sound player in the sector, has been raising funds to calm investor concern over its liquidity. The company has been exploring assets sales and is seeking a 50 billion yuan bank loan to avoid what would amount to one of the biggest defaults in the years-long industry crisis.

Vanke sold an unfinished property project — once designated as its new headquarters — to buyers including a major shareholder in May. The company has also been in talks with state-owned investment companies to sell its entire stake in logistics firm GLP Pte, Bloomberg reported in April, and applied to raise 1.16 billion yuan via a REIT for its VX Logistics unit on the Shenzhen bourse, according to a March filing.

Founded in 2016, Boyu operates in dozens of cities in China and had close to 180,000 apartments at the end of last year.

The company has 1.06 trillion yuan in total liabilities as of March, according to its latest financial report. Vanke’s sales slump moderated in May, with the value of homes sold gaining 11.5% from April to 23.3 billion yuan.

--With assistance from Emma Dong.

(Updates with the firm’s share and bond price changes)

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