CREC buys 24% stake in cash-strapped Malaysian real estate project

Malaysian state fund 1Malaysia Development Bhd or 1MDB said that it would sell 60 percent of its property project in Bandar Malaysia to a consortium including Iskandar Waterfront Holdings and China Railway Engineering Corp to ease its debt burden.

Located 7 kilometers from the center of the Malaysian capital, Kuala Lumpur, the project, with an estimated investment of about 7.41 billion ringgit ($1.72 billion), will not only serve as a transport hub for the city, but also the terminal of the proposed high-speed rail line that runs between Kuala Lumpur and Singapore.

After the deal, State-owned CREC will have a 24 percent stake in the property project.