Chinese e-commerce platform JD.com invests $306m in ESR
Chinese e-commerce platform JD.com has invested US$306m (€258.6m) in e-Shang Redwood (ESR), with the two looking to expand their activities across Asia-Pacific.
JD and Warburg Pincus backed ESR say they will leverage their resources and management expertise to proactively explore co-operation in multiple areas, including property development, fund management, and investment.
Zhenhui Wang, CEO of JD Logistics, 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 will further strengthen our relationship to solidify and expand our logistics networks.”
According to the Bureau of Statistics of China, online retail sales in China in the first quarter of 2018 reached US$307bn, accounting for 21.4% of total retail sales.
In a joint statement, the partners said the two companies would collaborate to seize on this continued strong growth, as well as rapid development throughout the broader region.
Jeffrey Shen, co-CEO of ESR, said leveraging of JD’s network effect and smart supply chain capabilities would see the partnership poised to capitalise on megatrends in the region.
Shen noted that ESR’s “exceptional” penetration into both developed and emerging markets across Asia-Pacific would provide a platform for the partnership to expand its co-operation across other key markets in Asia