JD Property raises $800 million to fund its expansion

JD Property, a subsidiary of JD.com that provides integrated solutions for modernized high standard warehousing, intelligent industrial parks and IDCs (intelligent data centers), have entered into definitive agreements for its non-redeemable Series B preferred share financing.

This round of funding, which is being co-led by Hillhouse Investment, Warburg Pincus, and other investors, is projected to raise around $800 million. Hillhouse Investment and Warburg Pincus participated in its $700 million Series A financing in March last year.

Hillhouse was an early backer of JD.com, pouring $300 million into the company in 2010. Since then, it has also invested in JD Health, JD Logistics, and JD Property.

According to JD.com, the financing is expected to facilitate JD Property’s business expansion and model transformation, and further strengthen its infrastructure property management capabilities, so as to further enhance its leading position in China’s modern logistics infrastructure industry.

JD.com, China’s second largest e-commerce platform, is transforming itself into a top supply chain technology and service provider by boosting investment in logistics and infrastructure.

In 2021, JD.com strengthened its distribution center portfolio by acquiring a controlling stake in Hong Kong-listed China Logistics Real Estate Holdings Limited through JD Property.

The long-time Alibaba rival announced in early March that it had acquired a 66.5% stake in domestic courier Deppon Logistics through subsidiary JD Logistics for nearly 9 billion yuan ($1.417 billion). On last Thursday, JD Logistics said it plans to raise $1.1 billion from a $700 million share placement with its parent company JD.Com plus a $400 million primary capital raising.

As more Chinese companies start targeting the international market, overseas, especially Southeast Asia and Europe, has become a new focus for JD Property’s growth. 

JD Property announced in January that its second intelligent logistics park in Vietnam is expected to start construction in the third quarter in 2022, and be completed in the second quarter of 2023.