Media365
JD.com has agreed to acquire a stake in a major office tower in Hong Kong’s Central district, mirroring a property move by its rival Alibaba Group Holding and offering a financial lift to the cash-strapped developer Lai Sun Development.
Lai Sun Development and its parent Lai Sun Garment entered into an agreement with Jasmine Investment Development IV Limited, an investment entity of JD.com, to sell its 50 per cent stake in the China Construction Bank Tower for HK$3.5 billion (US$450 million), according to a filing late on Tuesday.
JD.com’s acquisition of the Hong Kong property follows Alibaba and its affiliate Ant Group’s purchase of the top floors of One Causeway Bay at HK$7.2 billion in October, Hong Kong’s largest real estate transactions since 2021. Alibaba owns the Post.
JD.com has been expanding its operations in Hong Kong, including acquiring Kai Bo Food Supermarket in August and listing its supply-chain technology arm, Jingdong Industrials.
The latest purchase is expected to be used as the company’s office space.
“JD.com remains confident about its business prospects in Hong Kong,” a spokesperson said in a statement to the Post. “JD.com will continue to invest around [the] supply chain and integrate its retail, logistics and technology [research and development] into the local market, serving and contributing to Hong Kong.”
The latest transaction was expected to provide Lai Sun net sale proceeds of HK$2.4 billion, which would help bolster its cash flows and reduce borrowings, the developer said.
