Singapore's Global Logistic Properties (GLP) is investing US$324 million for a stake in China's largest state-owned warehouse logistics provider.

The latest GLP deal intends to capitalise on growing domestic consumption in the country, reported The Wall street Journal.

GLP, which is listed in Singapore, will take a 15.3 percent stake in Shanghai-listed CMST Development Co, becoming its second-largest shareholder, GLP said in a statement.

As part of the deal, GLP will also form a joint venture with CMST Development that is expected to invest more than $583 million to develop logistics facilities on land that the warehouse company already owns.

CMST Development "has land with direct railroad access, and in Shanghai it's next to impossible to get such sites," said GLP chief executive Ming Z. Mei. He added that the deal would support GLP by giving it broader coverage in China.

The logistics industry in China has attracted a range of investors in the past two years. Growing e-commerce and consumption make necessary better logistics networks to house and transport goods from factories to businesses and homes. Investors are focusing both on building warehouses on greenfield sites and upgrading existing facilities.

In May, APG Asset Management, a Dutch pension-fund asset manager, said it was purchasing a stake of around 20 percent in a Chinese warehouse developer, Shanghai e-Shang Warehousing Services, for up to $650 million. In April, the private-equity firm RRJ Capital and a unit of Singapore state investor Temasek Holdings agreed to invest $250 million in one of China's largest warehouse developers, Shanghai Yupei Group.

CMST Development's largest shareholder is China National Materials Storage and Transportation Corp, which is indirectly owned by the Chinese government.

The GLP deal is expected to close early next year, pending approvals from CMST Development shareholders and Chinese authorities.