China-based landlord Guangzhou R&F Properties Co will be paying MYR 4.5 billion or USD 1.4 billion for six sites in Malaysia. The seller of the company's first overseas acquisition is the Sultan of Johor.

In a statement given to the Hong Kong Stock Exchange today, the developer said it intends to construct commercial and residential properties on the land located in the state of Johor Bahru in Malaysia. The land measures 116 acres or 47 hectares. The statement said the planned development of the China-based developer will have an estimated floor area of 3.5 million square meters. It will be comprised of offices, homes and a hotel.

According to the Bloomberg report, Chinese developers are pouring billions of dollars in overseas projects as regulatory restrictions in the mainland and concerns of overheating in local property markets have prompted them to look for opportunities abroad.

Mizuho Securities Asia Ltd Alan Jin told Bloomberg, "Like other developers, R&F made the move to diversify its investment portfolio outside China as domestic property curbs don't seem to end soon. It remains uncertain how much demand is out there."

Last year, Country Garden Holdings Co said it will be purchasing prime waterfront property in Malaysia's southern portion. Country Garden Holdings is controlled by Yang Huiyan, the richest woman in China. In a statement, R&F Chairman Li Sze Lim said the company is looking for ways to take advantage of fast-developing markets abroad so it can increase its profitability for the long-term. He said, "The Malaysian property market has significant growth potential that comes from strong economic fundamentals and demographic factors offering opportunities which the group is well positioned to take advantage of."

Citing government data, the Bloomberg report said home values in Malaysia have risen to an average of 43% in 4.5 years ending in June.