Canada Pension Plan Investment Board has formed a joint venture with China Vanke Co Ltd, China's largest property developer.

CPPIB will invest $250 million (1.55 billion yuan) in the Chinese real estate market, according to a statement on March 25. CPPIB is seeking opportunities through new residential development projects in large cities across China

CPPIB and Vanke are investing in a project in Qingdao, Shandong province.

"We see this as an excellent opportunity to expand our presence in the country and invest in the residential sector alongside Vanke, an experienced and market-leading developer with a proven track record of delivering high-quality homes to China's ever-growing middle class," said Graeme Eadie, senior vice-president of Real Estate Investments for CPPIB.

Vanke has also posted a message on its official micro blog account, saying the company welcomes the Canadian partner.

In fact, CPPIB already has significant investments in the commercial property and logistics sectors in Asia.

As of Dec 31, CPPIB's investments in Asia totaled C$23.4 billion representing 11.6 percent of the total portfolio, including C$4.2 billion of real estate investments.