Singapore-based Ascendas Pte Ltd, Asia's leading business property developer, yesterday launched two China-focused private equity funds totaling $924 million to invest in the country's booming industrial and commercial property market.

The $396 million Ascendas China Industrial & Business Parks Fund will seek to invest in industrial and business park assets in China, while the $528 million Ascendas China Commercial Fund will "target high-quality commercial properties" in the first-tier cities in the country, senior company officials said.

The industrial and business parks fund will mainly invest in light industrial and logistics facilities such as warehouses, distribution centers and suburban business offices, according to Tay Eng Kiat, CEO of Ascendas China.

The seed assets of the industrial fund will consist of the company's flagship project in China - Xinsu assets, which comprise 54 buildings covering 261,000 square meters in Suzhou Industrial Park, Tay said.

But the developer "plans to put its IT and business parks in Nanjing, Dalian, Xi'an and other places" in the industrial fund's portfolio, Tay said.

The commercial fund's seed asset is Ascendas Ocean Tower, a 25-story grade-A office building in Shanghai.

"We are also considering acquiring other commercial properties in Shanghai and Beijing to expand our portfolio," said Ng Hsueh Ling, Ascendas' senior vice-president.

The developer plans to more than triple its investment in the Chinese mainland in the next five years, said Chong Siak Ching, the company's president and CEO.

"The total investment then would amount to $1.6 billion, up from our earlier target of $1.4 billion," Chong said.