JD invests $306 million in supply chain partner ESR
Chinese e-commerce giant JD has invested US$306 million in its supply chain partner ESR, creating an alliance the two companies say will enables best-in-class logistics services for customers and businesses in China and beyond.
ESR, a pan-Asian logistics real estate developer, owner, and operator focused on key metropolitan areas was co-founded by senior management and Warburg Pincus. It has $12 billion worth of assets owned or under development across China, Japan, Singapore, South Korea and India and capital and fund management offices in Hong Kong and Singapore.
JD and ESR say they will use their resources and management expertise to proactively explore cooperation in multiple areas, including property development, fund management, and investment across the region.
“Investing in ESR, one of our major warehouse partners, presents tremendous opportunities for us,” said JD Logistics CEO Zhenhui Wang. “The investment will further strengthen our relationship to solidify and expand our logistics networks.”
China’s burgeoning e-commerce industry has triggered a logistics boom in the region. Government figures say online sales reached US$307 billion in the first quarter of this year, accounting for 21.4 per cent of total retail sales.
Jeffrey Shen and Stuart Gibson, Co-CEOs of ESR, said matching JD’s network and smart supply chain capabilities with ESR’s penetration into both developed and emerging markets across Asia Pacific, would allow the allied companies to capitalise on megatrends in the region.