Chinese investment firm China Ping An Trust & Investment has signed an agreement with the European realty fund manager, AXA Real Estate Investment Managers, to develop residential projects for wealthy residents in the Chinese mainland.

At the start of this month, AXA REIM had said it was looking to raise $500 million in equity for its very first Asian real estate venture. The partnership with Ping An, one of the largest trust companies in China with a registered capital of RMB2.7 billion, will add to revenues for the AXA-owned firm.

AXA REIM chief executive officer Pierre Vaquier said in a statement that the decision to expand in China was made because of the country's young and growing population, rising incomes and high investment appeal.

AXA REIM holds office in Singapore. It has €40 billion of assets under management and operates in 21 countries.