Warburg Pincus and Hillhouse Capital will co-lead a $700 million Series A financing round in JD Property, the infrastructure asset management and integrated service subsidiary of Chinese online retailer JD.com.
JD.com will remain the majority shareholder of JD Property following the non-redeemable series A preferred share financing, according to JD.com’s Q4 2020 financial statement and a Warburg Pincus statement on March 11.
“By leveraging Warburg Pincus and Hillhouse Capital’s industry expertise and resources, JD Property will further strengthen its infrastructure property management capabilities,” the Chinese retail giant said in its financial results announcement.
“This investment demonstrates our conviction in the tremendous growth opportunity in new economy real estate and infrastructure as well as our ongoing commitment to investing in these sectors,” added Ellen Ng, managing director and head of China real estate of Warburg Pincus.
JD Property launched its first logistics properties development fund with RMB3 billion ($462 million) of assets under management in the fourth quarter last year, following the establishment of two logistics properties core funds.
The key investors of the development fund include Singapore’s GIC and Mubadala Investment Company, an Abu Dhabi-based sovereign investor, according to JD.com’s financial statement. The total assets under management of JD Property’s core funds and development fund have exceeded RMB19 billion.
New York-headquartered Warburg Pincus has invested about $6 billion in 36 real estate companies in Asia since 2005, ranging from logistics and technology/biotech parks to data centres.
The firm’s investments in the new economy real estate and infrastructure account for approximately two-thirds of its total activities in real estate.
Warburg Pincus is also one of the largest private equity investors in China, with more than $12.5 billion put in over 130 companies in this market since 1994.
Meanwhile, Hillhouse Capital was an early investor in JD.com and then continued to back JD.com’s healthcare arm JD Health in a $830 million Series B round and co-led a $2.5 billion investment in JD Logistics.