E-Shang Redwood (ESR) has been given $100m by the $34bn State Oil Fund of Azerbaijan (SOFAZ).

The logistics developer and manager said SOFAZ is investing in its Japanese portfolio.

Rapid growth in the operations of third-party logistics companies and the e-commerce sector has, ESR said, made Japan’s logistics sector an attractive option for investors.

Japan offers a stable overall economy and a shortage of modern warehouse space.

Shahmar Movsumov, executive director of SOFAZ, said: “The investment is consistent with our strategy of identifying through rigorous diligence and then committing to the most compelling and focused strategies by geography and asset class.

“Development of state-of-the-art logistics real estate in Japan, which has witnessed increasing levels of demand associated with growth of e-commerce industry particularly in Tokyo and Osaka, is such a strategy and complements well our existing real estate portfolio.”

ESR recently took a majority stake in the manager of the Singapore-listed Cambridge Industrial Trust (CIT) for an undisclosed price.

The acquisition gave ESR, partly owned by private equity firm Warburg Pincus, a platform to expand in Southeast Asia.