Key points
- JD Property, Partners Group, and EZA Hill plan a Singapore-based REIT.
- The REIT, potentially valued at over USD 1 billion, aims to list on the Singapore Exchange in 2024.
- Initial assets include four logistics properties acquired from CapitaLand Ascendas REIT.
- The consortium plans to expand the REIT across Southeast Asia.
JD.com’s property investment arm, JD Property, is spearheading the creation of a substantial real estate investment trust (REIT) in Singapore, in collaboration with Swiss investment firm Partners Group and EZA Hill Property (backed by Hillhouse Capital).
Sources familiar with the matter, speaking on the condition of anonymity due to the private nature of the deal, revealed that the REIT is expected to hold assets valued at over USD 1 billion.
The planned listing on the Singapore Exchange (SGX) is tentatively set for sometime in 2024. This would mark one of the largest REIT entries in Singapore in over a year, signaling a resurgence of investor confidence.
The foundation of this ambitious project comprises four recently acquired logistics assets from CapitaLand Ascendas REIT, which were purchased for S$306 million (approximately USD 238.56 million) earlier this month. The consortium is currently finalizing the REIT’s asset composition, which will primarily consist of Singaporean industrial properties.
However, plans involve expansion across Southeast Asia, with further acquisitions of industrial and logistics assets already in their sights. The consortium aims to complete the REIT’s establishment by October. However, the final valuation may be subject to adjustments depending on the ultimate asset mix.
The move comes amidst a cautious recovery in Singapore’s REIT market, which had experienced a period of subdued activity due to rising interest rates and global economic uncertainties.
This new initiative highlights a growing trend of Chinese investment in Southeast Asia’s real estate sector, demonstrating the increasing confidence in the region’s economic outlook. The participation of established players, such as Partners Group and Hillhouse, further underscores the attractiveness of this venture.
Beyond the immediate plans for the Singapore REIT, JD Property is concurrently pursuing its own independent Hong Kong IPO. Although an application was filed in March 2023, regulatory approval is still pending.
JD Property, a significant part of JD.com’s “new businesses” segment, has been actively expanding its global portfolio over the past three years, managing over 50 projects across nine countries. This new REIT represents a crucial step in their ongoing international expansion strategy
