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 “committed to a combined asset under management” of approximately RMB3.2bn (€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’s 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’s policies for developing new infrastructure.

Eric Goh, CEO of Keppel Capital China, said: “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.”