JD.com buys into Hong Kong Central tower as Lai Sun offloads US$450 million stake

JD.com has agreed to get a involvement successful a large bureau operation successful Hong Kong's Central district, mirroring a spot determination by its rival Alibaba Group Holding and offering a fiscal assistance to the cash-strapped developer Lai Sun Development.

Lai Sun Development and its genitor Lai Sun Garment entered into an statement with Jasmine Investment Development IV Limited, an concern entity of JD.com, to merchantability its 50 per cent involvement successful the China Construction Bank Tower for HK$3.5 cardinal (US$450 million), according to a filing precocious connected Tuesday.

JD.com's acquisition of the Hong Kong spot follows Alibaba and its affiliate Ant Group's acquisition of the apical floors of One Causeway Bay astatine HK$7.2 cardinal successful October, Hong Kong's largest existent property transactions since 2021. Alibaba owns the Post.

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JD.com has been expanding its operations successful Hong Kong, including acquiring Kai Bo Food Supermarket successful August and listing its supply-chain exertion arm, Jingdong Industrials.

The latest acquisition is expected to beryllium utilized arsenic the company's bureau space.

"JD.com remains assured astir its concern prospects successful Hong Kong," a spokesperson said successful a connection to the Post. "JD.com volition proceed to put astir [the] proviso concatenation and integrate its retail, logistics and exertion [research and development] into the section market, serving and contributing to Hong Kong."

The latest transaction was expected to supply Lai Sun nett merchantability proceeds of HK$2.4 billion, which would assistance bolster its currency flows and trim borrowings, the developer said.

Assuming the completion of the disposal and a caller palmy refinancing of a HK$3.5 cardinal indebtedness backed by its Cheung Sha Wan Plaza bureau operation and buying centre successful Kowloon, Lai Sun's short-term fiscal presumption would amended from a shortage to a surplus, it said.

A logo of JD.com e-commerce institution astatine its sorting centre gathering successful Beijing, China. Photo: Reuters alt=A logo of JD.com e-commerce institution astatine its sorting centre gathering successful Beijing, China. Photo: Reuters>

The transaction is expected to instrumentality spot successful January 2026.

Lai Sun, 1 of the section developers plagued by slumping sales, anemic betterment successful the commercialized assemblage and precocious involvement rates, has been seeking to refinance slope loans and merchantability assets.

Lai Sun Development and Lai Sun Garment had nett existent liabilities of HK$4.51 cardinal and HK$5.42 billion, respectively, arsenic good arsenic full borrowings of astir HK$25.38 cardinal arsenic of July.