Malaysia's 1MDB to sell property project stake to China-Malaysia group

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KUALA LUMPUR (Dec 31): Malaysia's troubled state fund 1MDB has agreed to sell its majority stake in a high-profile property development project to a consortium including China's state-owned China Railway Engineering Corporation (CREC), according to a copy of the contract seen by Reuters on Thursday.

Malaysia's Iskandar Waterfront Holdings is in the consortium with CREC, according to the document. Debt-laden 1MDB is selling its 60% holding in Bandar Malaysia Berhad, which is developing a 486-acre air force base in Kuala Lumpur into the city's public transport hub.

1MDB is scheduled to announce the sale later on Thursday.