SK Holdings Co Ltd, one of the largest South Korean conglomerates, announced on Tuesday to invest KRW 374 billion ($333 million) in Hong Kong-based logistics real estate developer e-Shang Redwood Ltd( ESR).

SK Holdings Co Ltd will have 10 percent stake in e-Shang Redwood Ltd. The transaction marks SK's first investment in the logistics real estate sector and its largest-ever minority investment.

Co-founded by Warburg Pincus and the senior management Stuart Gibson, Jeffrey Shen and Charles de Portes, e-Shang Redwood Ltd is one of the largest warehouse developers, owners and managers in Asia. As of June 2017, ESR had managed 8.4 million square meters of projects with $9 billion of assets under management across China, South Korea, Japan and Singapore.

ESR's customers include e-commerce, retail, manufacturing and third-party logistics companies, such as JD, Yhd, Carrefour, Daimler and H&M.

The warehousing industry in Asia has witnessed robust development driven by the rapid growth of e-commerce and an increasing reliance on third-party logistics providers. According to JLL Research, e-commerce sales in China will represent over 50 percent of global e-commerce sales by 2018 and China's online retail transaction value is expected to double from 2016 to 2029, exceeding $1.5 trillion.