Invesco Real Estate is buying a majority stake in a Chinese logistics portfolio valued at more than RMB2bn (€249m) from e-Shang Redwood (ESR) and forming a joint venture with the pan-Asian logistics developer.

The joint venture is for the acquisition and ongoing asset management of the portfolio, the two companies said.

The portfolio consists of grade-A stabilised logistics real estate assets in China, the firms said, without disclosing the size of the stake being exchanged.

Cheng Soon Lau, Invesco’s managing director for Asia-Pacific, said: “Our team has already developed a strong working relationship with the ESR team and we look forward to growing our partnership with them.”

Invesco said it was the first time it had invested in Chinese logistics, and described the move as a further expansion of its core footprint in Asia.

Under the terms of the deal, ESR will keep an equity interest in the portfolio and act as the project and property manager of the assets.

Jeffrey Shen, co-chief executive and co-founder of ESR, pointed to future deals involving the two parties.

“In addition to this China transaction, we see many other ways to cooperate across the region with the goal of creating long-term value for our shareholders and investors,” he said.

The transaction is expected to close by late October 2017.