Keppel Corporation’s asset management unit Keppel Capital, through its China logistics property fund, has acquired a warehouse in China’s Wuhan province in partnership with the Chinese real estate logistics developer BLOGIS Holdings.

Keppel said in a statement on Wednesday that the 70,000-square-metre property, is the first asset in the logistics property fund’s portfolio.

The transaction amount was not disclosed.

Keppel’s logistics property fund, a 2021-vintage vehicle managed by Keppel Capital China, targets investments in, and the development of, high-quality warehouses in key logistics hubs in China alongside BLOGIS its local partner.

The fund targets assets under management of 3.2 billion yuan ($465 million), according to the statement.

The partners will continue to deploy their capital in a pipeline in key logistics markets, such as Yangtze River Delta, Beijing-Tianjin-Hebei region, and other logistics hubs following the acquisition.

“China’s logistics sector has continued to see growth and capital inflows in recent years. Driven by rising domestic consumption as well as e-commerce, China’s demand for quality logistics facilities is expanding rapidly. Keppel is happy to partner BLOGIS for its expertise in the development and operation of logistics assets in China,” said Eric Goh, CEO of Keppel Capital China.

“Together with BLOGIS, the Keppel China logistics fund is seizing opportunities presented by the resilient logistics sector to deliver attractive risk-adjusted returns for our investors.”

As of December 2021, Keppel Capital manages around S$42 billion in global assets under management which includes real estate, infrastructure, and data centre assets.