Keppel Capital has acquired the first asset for its Chinese logistics property fund, which was launched in 2021.
The fund manager has partnered with Chinese developer Blogis to acquire a 70,000sqm warehousing complex in Wuhan.
Keppel Capital said the fund and Blogis, part of the China Nanshan Group, have 鈥渃ommitted to a combined asset under management鈥� of approximately RMB3.2bn (鈧�438m).
The two companies plan to make other investments in key logistics markets, such as Yangtze River Delta and Beijing-Tianjin-Hebei regions.
Keppel Capital said the demand for logistics in China remained stable despite the recent impact of COVID-19 on the country鈥檚 domestic market.
The company has cited forecasts by CBRE that average rental growth for warehousing in China will surpass 2.5% in 2022, and said the sector was supported by China鈥檚 policies for developing new infrastructure.
Eric Goh, CEO of Keppel Capital China, said: 鈥淐hina鈥檚 logistics sector has continued to see growth and capital inflows in recent years.
鈥淒riven by rising domestic consumption as well as e-commerce, China鈥檚 demand for quality logistics facilities is expanding rapidly.鈥�
