JD Property Development acquires Shimun Lai Fung Center for a reported price of 1.8 billion, expanding local logistics

JD Group (09618) announced that its subsidiary, JD Logistics, has successfully completed the acquisition of the Lai Fung Centre in Shek Mun, Sha Tin, Hong Kong. The logistics property covers an area of 487,000 square feet, providing efficient and reliable logistics services in Hong Kong. The transaction price was not disclosed, but it is reported to be around HKD 1.8 billion, approximately HKD 3,694 per square foot. Earlier, there were rumors in the market that the entire Lai Fung Centre, owned by a fund, was being acquired by a buyer. Continuing to Explore Opportunities in the Asia-Pacific Region JD Logistics expressed excitement about adding new logistics infrastructure in Hong Kong, reflecting the efficient identification and completion of transactions by the company's team. They are prepared to continue expanding their business in Hong Kong. The company stated that the property's prime location and convenient transportation will provide efficient and reliable logistics services in Hong Kong. They will continue to actively explore other opportunities in major markets in the Asia-Pacific region. In June of this year, it was rumored in the market that the entire Lai Fung Centre in Shek Mun, owned by a fund, was being acquired by a potential buyer and is expected to change hands in the short term. At that time, it was reported that the potential buyer planned to purchase the property for self-use. According to JD Logistics' website, their business includes investments, development, and asset management in logistics parks, commercial parks, data centers, etc. They are a service provider based on the construction and operation of intelligent industrial parks. As of the end of last year, JD Logistics had core distribution nodes in 29 provinces in China, with 39 overseas projects and infrastructure in Southeast Asia and Europe. Data shows that JD Logistics started entering the European market in 2022, acquiring a warehouse in the UK in mid-2022 and entering the Dutch market at the end of the year. They established a smart logistics park in a commercial park near major transportation routes in the Netherlands, which has multiple container terminals. In addition to Europe, JD Logistics' modern logistics warehouse in Indonesia was completed in the first half of this year. The warehouse is located in an industrial area and operates using a conveyor-style warehouse design. During JD Group's performance conference call earlier this year, JD Logistics stated that they are expanding their business in Southeast Asia and Europe, focusing on markets in Vietnam, Indonesia, Singapore, the UK, and the Netherlands. Their clients include international logistics giants, fast-moving consumer goods companies, and emerging Chinese companies expanding overseas. Listed in Shanghai last year, now on hold JD Logistics had planned to list in Hong Kong in 2023 and submitted an application to the Hong Kong Stock Exchange. However, in May of this year, sources close to JD revealed that JD Logistics has temporarily postponed its listing in Hong Kong and will wait for the right timing to resume preparations. According to the China Securities Regulatory Commission's record, JD Logistics is no longer on the list of companies filing for overseas listings