HONG KONG (Reuters) – Chinese developer Guangzhou R&F Properties said it did not have sufficient funds to buy back a $725 million bond as sales of its assets had not come through as planned.

The company filed late Wednesday night, stating that it had less funds than expected to pay for its offshore bond tender. It was responding to volatility in the property market.

R&F sought consent from bondholders of the 5.75% notes last month to extend maturity of the bond due Jan. 13 by six months, as part of efforts to “improve its overall financial condition”.

Two options were also offered by the developer under a tender: either buying back notes at 17% or $830 per $1,000 principal, or purchasing back only half of bondsholders’ notes, with accrued interest.

China’s real property developers have struggled to overcome liquidity problems in recent months because of the government’s crackdown on excess borrowing and speculation within the sector.

R&F said in the filing that 71.7% of the bondholders had tendered for the first option, while 24.2% for the second – but it expects it has “materially less” than $300 million to buy back all the bond.

It stated that proceeds from some asset sales contemplated for the group might not materialize by settlement date. The settlement date was also delayed by two days, to Jan. 12.

Last month’s document stated that the company would accept note tenders pro rata. Any notes rejected for purchase will be returned to bondholders. Holders who submitted a tender would be considered to have approved the extension of maturity.

“Despite the delays in the progress of certain anticipated asset sales, the group is continuing to take active measures to shore up its liquidity position up to the settlement date,” R&F added in the Wednesday filing.

According to the half-year financial report, total debts of the developer at June’s end were 143.4 billion Yuan (22.50 Billion).

The bond in question dropped to 61.5 cent on the dollar in Asia afternoon hours on Thursday, from 66.5 overnight, while a R&F yuan bond due April 2022 plunged 10%.

Shares of R&F listed in Hong Kong were up 1% at 0600 GMT, versus a 0.4% drop in the broader market.

($1 = 6.3736 )