Grosvenor is to expand its presence in China with the launch of a $600m (£365m) opportunity fund.

The company, which has a £15.6bn international portfolio under management, plans to invest in shopping centres across the country, having completed a first round of fundraising from US and European investors last month. The company aims to provide investors with a return of between 18%-20%.

Target cities for the fund include the tier one cities of Beijing, Shanghai, Ghangzhou and Shenzhen, as well as China’s growing cities such as Chengdu, Chongqing, Nanjing and Tianjin.

Nicholas Loup, chief executive of Grosvenor Asia, said: ‘We see shopping malls as representing significant long-term investment potential because China's domestic consumption is expected to continue growing as the local economy expands, and consumers have few options when it comes to shopping malls.’

Grosvenor has stated previously that it plans to grow its exposure to Asian property to account for 20% of its overall portfolio, up from 5% currently.

The company first entered China in 2005, buying residential schemes in Shanghai