(Yicai Global) Oct. 12 -- Chinese real estate giant China Vanke Co. [SHE:000002] plans to shell out USD227.7 million (CNY1.5 billion) to participate in the establishment of an investment fund that will back logistics property projects in China.

The company will set up the USD910.89 million fund with four investment partners. Its largest shareholder will be a trust company affiliated with the Jiangsu provincial government that will chip in USD546.53 million, Vanke said yesterday. Vanke's USD227.72 million will make it the second largest shareholder.

The fund manager will be an investment company in Shenzhen, and the term of partnership is 10 years. After negotiation, each partner can choose to increase its investment in the future, but the scale of the fund cannot exceed USD3.04 billion.

Vanke said that participating in setting up the fund is one of its development strategies in the logistics property business, and the move will help it speed up investment operations in the field with external partners.

Logistics property endeavors cover the construction of relevant facilities and industrial parks such as warehouses and distribution hubs. With the rapid development of China's e-commerce and express delivery businesses, the logistics property sector has room to develop.