Warburg Pincus, Hillhouse back China's JD Property
JD Property, the infrastructure property asset management arm of Chinese e-commerce giant JD.com, has raised a $700 million Series A round led by Warburg Pincus and Hillhouse Capital.
The company, established in 2018, owns, develops, and manages warehousing and other logistics facilities, supporting the operations of JD Logistics. JD Logistics filed for a Hong Kong IPO last month, having also been spun out from JD.com and raised private funding.
JD Property - in which JD.com remains the majority shareholder - is a fund management platform. It scales by recycling profits from mature developments and into new projects. The company's portfolio comprised facilities with a gross floor area of over 10 million square meters, according to JD.com's 2019 annual report. Total assets under management exceed RMB19 billion ($2.9 billion).
In 2019, JD Property launched a RMB4.8 billion fund with Singapore GIC. It committed 20% of the corpus - to GIC's 80% - and serves as the general partner. Last year, a RMB3 billion fund was established with GIC and Mubadala Investment.
JD.com claims to be China’s leading one-stop e-commerce platform with more than 471 million active customers. Revenue came to RMB745.8 billion in 2020. JD Logistics, meanwhile, operates 28 smart logistics parks and a network of more than 900 warehouses covering 21 million sqm. It generated RMB49.5 billion in revenue for the first nine months of 2020, with JD.com contributing more than half of that.
JD Logistics is set to become the second JD.com unit to list in Hong Kong within six months after JD Health raised HK$26.9 billion ($3.48 billion) in December.
Hillhouse Capital is a significant investor in both subsidiaries, having committed $830 million to JD Health in 2020 and $360 million to JD Logistics in 2018. It received additional shares last year when JD Logistics acquired Kuayue Express, a less-than-truckload delivery specialist backed by Hillhouse and other investors.
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