Sinotrans (HKG:0598) said it was forming a joint venture with China Nanshan Development (Group)'s Hungarian subsidiary to acquire a warehouse in the country, according to a Hong Kong bourse filing Thursday.

Shares of the e-commerce business fell nearly 1% in late morning trade Friday.

The venture will have a registered capital of 10,000 euros of which Sinotrans will contribute 4,000 euros while the remaining 6,000 euros will come from CNDI Hungary, proportional to their ownership of 40% and 60%, respectively.

Both sides plan to contribute a further 49.8 million euros in the business in accordance with their ownership, Sinotrans said.

The warehouse in question is located in the northeast of Budapest with a total rentable area of around 46,125 square meters. It currently has an occupancy rate of 100%, Sinotrans said.