Malaysia's troubled state fund 1MDB said on Thursday it had agreed to a $1.7 billion property deal with a Malaysian-Chinese group, wrapping up major asset sales to cut debt.
This will help Prime Minister Najib Razak, who chairs 1MDB's advisory board and who has faced calls to resign amid international probes and public outrage over allegations of graft and financial mismanagement at the fund.
1MDB will sell its 60 percent stake in Bandar Malaysia Berhad to Iskandar Waterfront Holdings and its partner, state-run China Railway Engineering Corp,for 7.41 billion ringgit ($1.7 billion), the fund said in a statement.
Bandar Malaysia is developing a 486-acre air force base in Kuala Lumpur into the capital's public transport hub.
The deal represents the second major asset purchase from the fund involving Chinese state-run companies. China General Nuclear Power Corporation bought 1MDB's energy assets for $2.3 billion last month.