LaSalle Investment Management has raised an initial $681m (€623m) for its first dedicated China logistics fund.

The LaSalle China Logistics Venture (LCLV) fund and its co-investment vehicle received the capital commitments from a diverse mix of new and existing investors from Europe, the Middle East, and Asia, the manager said.

The fund is expected to raise between $750m and $1bn, according to sources familiar with the matter.

LCLV will invest across first-tier and second-tier cities located in China’s key logistics regions, including the Yangtze River Delta (Greater Shanghai), Bohai Bay (Greater Beijing) and Greater Bay (South China).

LaSalle said the fund seeks to develop and build a diversified portfolio of modern logistics facilities and will also acquire and reposition underperforming logistics assets.

LaSalle said LCLV has recently acquired two development sites in Kunshan and Jiaxing and has also bought three stabilised logistics assets in Wujiang, Tianjin and Huizhou.

Mark Gabbay, CEO Asia Pacific of LaSalle Investment Management, said: “With LCLV, we are responding to strong investor appetite for quality logistics assets.

“The quick completion of our first close is a testament to our strong track record and to the attractive returns available in the logistics sector in China.”

Claire Tang, head of Greater China at LaSalle Investment Management, said growth in domestic consumption, and e-commerce, in particular, will continue to boost demand for modern logistics properties.

“With the closing of our new fund, we will draw upon our regional resources and local expertise in the sector to pursue compelling investment opportunities and expand our investment footprint.”

Yen Tjin Chan, fund manager, LaSalle China Logistics Venture, said: “We seek to continue to leverage on our strong on-the-ground team as well our existing partnerships to develop and acquire a diversified portfolio of logistics assets.”