1MDB Sells Majority Stake in Real-Estate Project for $1.7 Billion

Updated Dec. 31, 2015 8:44 a.m. ET

KUALA LUMPUR, MalaysiaMalaysian state investment fund 1Malaysia Development Bhd. Thursday said it had agreed to sell a majority stake in a Kuala Lumpur real-estate project to a consortium that includes a state-owned Chinese company for 7.41 billion ringgit ($1.72 billion), the second time in recent weeks that a Chinese firm has helped 1MDB cut its debt pile.

The involvement of China Railway Engineering Corp., the Malaysian unit of China Railway Group Ltd. 601390 0.37 % , in the winning consortium comes at a time when it is competing with Japanese firms for a contract to build a high-speed rail link betwe