China's biggest developer, Greenland Group, will invest in Japanese real estate with plans to tap properties that appear relatively undervalued compared with those at home.

Greenland signed a memorandum Monday on a business alliance with Mizuho Financial Group.

"Besides providing information on land needed for real estate development in Japan, we will support funding through such steps as the issuance of yen-denominated bonds," Mizuho President Yasuhiro Sato said.

The developer is considering investing in existing properties, such as residential and office buildings, in addition to participating in urban development projects. Specific candidates are already under consideration, according to sources familiar with the matter.

Real estate prices have been skyrocketing in some Chinese cities, including Shanghai. In part because of a strong yuan, it is not uncommon to see properties even pricier than in Japan.