JD.Com's real estate subsidiary launches mega REIT in Singapore!

JD.Com's real estate subsidiary launches mega REIT in Singapore!

JD Property, the real estate subsidiary of Chinese technology group JD.com, plans to launch a real estate fund in Singapore valued at more than US$1 billion (SGD1.3 billion). This initiative is in collaboration with Swiss investment firm Partners Group and Hillhouse-backed EZA Hill Property. Loud Market screener The REIT could be listed on the Singapore Exchange as early as 2026.

The project would represent one of the largest new developments in Singapore's REIT sector in over a year. This move signals growing confidence in the REIT sector and shows the increasing role of Chinese capital in Southeast Asia.

Strategic acquisitions and expansion plans

The creation of the REIT follows the joint acquisition of four logistics properties from CapitaLand Ascendas Reit for a total of $306 million in August. The REIT's asset composition is currently being finalized, which is expected to include industrial real estate. JD Property, Partners Group and EZA Hill also plan to expand the REIT across Southeast Asia with the aim of acquiring additional industrial and logistics assets. The Straits Times reports that the final valuation of the REIT depends on the asset composition and the formation is expected to be completed by October 2025.

These plans come at a time when the REIT market in Singapore is experiencing a temporary revival. There have been few new issuances since 2021, marked by rising interest rates and macroeconomic uncertainties. However, NTT DC REIT's recent IPO, Singapore's largest listing since 2021, suggests renewed investor interest.

Global expansion and future developments

JD Property has expanded globally in recent years and operates over 50 projects in nine countries, including Japan, Indonesia and the UAE. The company partners with sovereign wealth funds such as Singapore's GIC and Abu Dhabi's Mubadala Investment Company for logistics developments. Additionally, JD Property is pursuing a separate listing via an IPO in Hong Kong, for which an application for approval was submitted on March 30, 2023.

The developments surrounding JD.com are remarkable. The company is fighting for market share in China's instant delivery market and recently completed the acquisition of Hong Kong retailer Kai Bo Food Supermarket and 70% of Moretide Investments Ltd. announced for 4 billion HKD. These strategic moves indicate that JD.com is trying to sustainably strengthen its presence not only in e-commerce but also in the real estate sector.