The property investment arm of Chinese e-commerce giant JD.com (9618), along with two other firms, plans to establish a Singapore-based real estate investment trust with assets potentially valued at over US$1 billion (HK$7.8 billion), according to two sources familiar with the matter.
JD Property, the unlisted infrastructure investment and asset management platform of JD.com, is forming the REIT in collaboration with Swiss investment firm Partners Group and EZA Hill Property, which is supported by Asian investment firm Hillhouse, the sources said.
The planned REIT could be listed on the Singapore Exchange as early as next year, the sources added, requesting anonymity as the matter is private. The REIT plan has not been previously reported.
If successful, the JD Property-backed REIT would be one of the largest new entrants in Singapore's REIT market in over a year, reflecting growing confidence in the sector and highlighting the increasing influence of Chinese capital in Southeast Asia.
The establishment of the planned REIT follows the recent acquisition of four logistics assets from CapitaLand Ascendas REIT for S$306 million (HK$1.85 billion) by JD Property, Partners Group, and EZA Hill this month, the sources noted.
The three investors are currently finalizing the REIT's asset composition, which is expected to include industrial properties in Singapore that the consortium acquired from CapitaLand, they added.
JD.com, JD Property, Partners Group, and EZA Hill did not respond to Reuters' requests for comment. CapitaLand declined to disclose the purchaser of the logistics assets.
JD Property, Partners Group, and EZA Hill plan to expand the Singaporean REIT across Southeast Asia, targeting further acquisitions of industrial and logistics assets, a third source said.
The companies are working to complete the REIT's establishment by October, and its final valuation may vary depending on the asset mix, the first two sources mentioned.
The latest REIT plan in Singapore comes amid a tentative revival in the city's REIT market, which had experienced a slowdown in new listings since 2021 due to rising interest rates and macroeconomic uncertainty.
The recent initial public offering of NTT DC REIT, Singapore's largest listing since 2021, and the surge in the benchmark index to record highs since late July indicate renewed investor appetite, supported by the city-state's efforts to boost its equities market.
Listing Plan
EZA Hill, one of JD Property's partners in the REIT, is backed by Rava Partners, the real assets investment arm of Hillhouse Capital. The firm has been actively acquiring logistics and industrial assets across Southeast Asia.
JD Property, majority-owned by JD.com, has been expanding globally over the past three years. It operates more than 50 projects across nine countries, including Japan, Indonesia, and the United Arab Emirates, according to its website.
The company counts Warburg Pincus and Hillhouse among its minority investors and has partnered with sovereign wealth funds such as Singapore's GIC and Abu Dhabi's Mubadala to raise billions of yuan for logistics developments.
The Singapore REIT listing plan coincides with JD Property's ongoing pursuit of a separate market listing via a Hong Kong IPO, the sources said. The timeline for the IPO remains unclear.
JD Property applied for a Hong Kong IPO on March 30, 2023, but has yet to receive regulatory approval for the listing. JD.com and JD Property did not respond to requests for comment on the Hong Kong IPO plan.
JD Property is part of the company's "new businesses" segment, which includes JD Food Delivery, Jingxi, and overseas ventures, according to JD.com's financial statements.
REUTERS
