Logistics property developer Global Logistics Properties (GLP) and a consortium of investors have established a $7 billion China-focused logistics infrastructure fund aimed at developing modern warehouse facilities across the mainland.

GLP China will manage the fund with a 56-percent interest and its partners will include national pension funds and sovereign wealth funds from Asia, North America and the Middle East, the Singapore-listed developer said in a statement.

So far $3.7 billion of equity has been committed to the fund, known, with plans to increase the investment to $7 billion and develop 140 million square feet over four years. It is the second fund to be launched in China by GLP.

“China remains our primary market for development,” said Ming Mei, chief executive officer of GLP.

GLP has been growing its warehouse development in China by 30 percent a year. Strong demand from investors and the enormous size of the market lies behind GLP’s decision to create a new fund.

GLP said its funds sought to capture significant opportunities arising from the shortage of modern logistics infrastructure in China. Demand for modern warehouse facilities is driven by growing domestic consumption, urbanization and the rapid expansion of e-commerce. This has seen GLP China portfolio growing at a 61-percent compound annual growth rate over the last decade to encompass 127 million square feet of completed facilities.

“China’s expanding middle class is driving unprecedented growth in e-commerce activity and retail chain store sales,” said Mei. “The weight of domestic consumption is increasing rapidly relative to total GDP and the movement of consumer goods related to this activity has created accelerating demand for modern logistics space.”

CLF II expects to start acquiring land later this year and begin construction of new developments in April 2016.