Singapore’s sovereign investment fund Temasek has bought a 21.7 percent stake worth $300 million in Li & Fung’s logistics business, LF Logistics.

The investment values LF Logistics at approximately $1.4 billion. Proceeds from the investment will be used to fund “future capital expenditures, repay existing bank facilities and accelerate business growth initiatives at LF Logistics,” the Hong Kong company said, adding that its proposed spin-off of the logistics arm will be postponed until further notice.

After completion, Li & Fung will remain a controlling shareholder of LF Logistics.

While Li & Fung’s core supply chain solutions business has been challenged in recent years due to a weakening retail environment in key markets like the U.S., Li & Fung’s logistics business has reported robust “multiple-year double-digit organic growth,” it said. Its expansion has been buoyed by the rise of China, the e-logistics boom, accelerated development in the ASEAN region and rapid expansion into new geographies including Japan, South Korea and India.

“We expect the strong growth of LF Logistics to continue,” said Joseph Phi, group president, Li & Fung. “With operations in all of Asia’s fastest-growing cities, we are well positioned to capitalize on rising middle class consumption and our early investment in e-logistics allows us to enjoy first-mover advantage. Our logistics strength combined with Li & Fung’s sourcing and new digital supply chain solutions, represents a unique end-to-end offering that encompasses the entire value chain.”

According to the company web site, LF Logistics manages more than 26 million square feet of space, partnering with more than 400 global companies, and delivers over 100 million units of consumer products each day.