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.

Yao Guiqing, general manager of CREC, said that its participation is a reflection of the company's confidence in the local economy and the investment environment, adding that the project is a strategic property development for Malaysia.

"We see this investment as a key part of our global portfolio, as we seek to transfer our technological know-how to Malaysia, using our expertise in the planning and construction of transport-oriented projects," he said.

The deal came as the Malaysian state fund 1MDB, which was formed in 2009 to spur growth in the Southeast Asian country, had racked up more than $11 billion in debt - a burden that had weighed on the currency and was the focus of a series of global investigations.

Experts said the deal to unload the debt-ridden fund will help lift sentiment toward the Malaysian currency and also pave the way for the Chinese company to win a string of quality assets.

"It could be a win-win deal for both parties as cash-rich Chinese companies are looking to buy global assets under the government's Belt and Road Initiative, and 1MDB needs the money to deal with certain liabilities," said Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University.

The Belt and Road Initiative involves major investment in infrastructure, as well as growing levels of trade along the Silk Road Economic Belt and the 21st Century Maritime Silk Road.

In November, China General Nuclear Power Corp agreed to buy 1MDB's power unit, Edra Global Energy, for $2.3 billion and a certain amount of the company's debt.

A source at CGN told China Daily earlier that Edra Global was a "high-quality asset" with energy projects located in Malaysia, Egypt, Bangladesh and Pakistan.

"Those projects are mainly for natural gas supply, which complement our clean energy business. The company has a strong ability to generate profits," the source said.