JD.Com's Property Arm Teams Up for $1 Billion Singapore REIT Launch

JD Property, the real estate investment division of Chinese e-commerce giant JD.Com, is making significant strides in the Southeast Asian property market. The company has announced a partnership with Swiss investment firm Partners Group and EZA Hill Property to establish a Singapore-based real estate investment trust (REIT) potentially valued at over $1 billion.

Singapore Listing on the Horizon

The joint venture is eyeing a listing on the Singapore Exchange as early as next year, marking a major move in the region's real estate investment landscape. This strategic initiative aims to capitalize on the growing demand for industrial and logistics assets in Southeast Asia.

Recent Acquisitions and Future Plans

The partnership has already taken concrete steps towards building its portfolio:

• Recently acquired four logistics assets from CapitaLand Ascendas REIT for S$306.00 million ($238.56 million)
• These assets are expected to form part of the REIT's initial portfolio
• Plans to include other industrial properties in Singapore

The trio of firms is not stopping at Singapore. They have ambitious plans to scale the REIT across Southeast Asia, with a focus on further acquisitions of industrial and logistics assets in the region.

Timeline and Partnerships

The companies are working diligently to establish the REIT, with a target completion date set for October. This timeline suggests a rapid progression from concept to execution, highlighting the partners' commitment to the venture.

JD Property brings significant experience to the table, operating more than 50 projects across nine countries. The company's credentials are further bolstered by minority investments from renowned firms such as Warburg Pincus and Hillhouse.

EZA Hill Property, another key player in this partnership, is backed by Asian investment powerhouse Hillhouse, adding further depth to the venture's financial and strategic resources.

JD Property's Broader Ambitions

While focusing on this Singapore REIT launch, JD Property is simultaneously pursuing other strategic initiatives:

• Applied for a Hong Kong IPO in March 2023
• Currently awaiting regulatory approval for the Hong Kong listing

The launch of this Singapore-based REIT represents a significant development in the Asian real estate market, potentially offering investors exposure to a diverse portfolio of industrial and logistics assets backed by the expertise of established players in the field. As the October target date approaches, market observers will be keenly watching the progress of this billion-dollar venture.