Keppel Capital, backed by an unnamed global investor, has launched its inaugural China-focused logistics property fund, which has an initial equity commitment of around CNY1.4bn (€180m).
The partners have an option to double the size of the trust by the end of this year.
The fund will undertake the development and the operation of logistics facilities across China’s key logistics hubs such as those in Greater Beijing, Greater Shanghai and the Greater Bay Area.
A pipeline of potential assets had been identified for the collaboration between the fund and the Chinese logistics property developer, said Keppel Capital in a statement.
Christina Tan, CEO of Keppel Capital, said: “Driven by rising domestic consumption as well as e-commerce, China’s demand for quality logistics facilities is expanding rapidly. Through the fund and our collaboration with our local logistics property partner, we look forward to delivering modern logistics facilities for key cities in the Chinese market, while also generating attractive risk-adjusted returns for our investors.”
Keppel Capital’s subsidiary Keppel Capital China will serve as the fund’s investment manager.
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