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Nasdaq-listed JD.com invests over US$300m in ESR Cayman
NASDAQ-LISTED JD.com Inc has invested over US$300 million into Asian logistics real estate player ESR Cayman Limited (ESR).
ESR announced on Tuesday that JD.com, an e-commerce company and retail infrastructure service provider in China, has invested US$306 million in ESR. It is a move that ESR says "is expected to not only deepen the strategic cooperation and synergies between the two companies, but also create an alliance that enables best-in-class logistics services for customers and businesses in China and beyond".
ESR's announcement added that JD.com and ESR will use their resources and management expertise to proactively explore cooperation in multiple areas, including property development, fund management and investment across the region.
Zhenhui Wang, CEO of JD Logistics, the JD.com subsidiary making the investment, said: "Investing in ESR, a leading pure-play pan-Asia logistics real-estate platform and one of our major warehouse partners, presents tremendous opportunities for us. The investment in ESR will further strengthen our relationship to solidify and expand our logistics networks."
Co-CEOs of ESR, Jeffrey Shen and Stuart Gibson, said: "Leveraging JD.com's network effect and smart supply chain capabilities, together with ESR's exceptional penetration into both developed and emerging markets across Asia-Pacific, this strategic alliance is poised to capitalise on megatrends in the region."
The companies' press release cited the Bureau of Statistics of China, which said that online retail sales in China reached US$307 billion in the first quarter of 2018, accounting for 21.4 per cent of total retail sales there.
"With the opportunities created by the burgeoning growth of e-commerce in pan-Asia, the two parties will seek to extend their cooperation in China and across other key markets in Asia," the press release said.