JD.com, China’s second-largest e-commerce company, has bought a 10 per cent stake in China Logistics Property Holdings for HK$898.99 million (US$114.55 million) through a subsidiary, according to a filing with the Hong Kong stock exchange on Friday. After trading hours on Friday, JD Subscriber agreed to buy 321,068,999 CNLP shares at a price of HK$2.80 a share, a premium of about 5.66 per cent on their closing price of HK$2.65. Proceeds from the sale will be used for the development of logistics park projects and as general working capital. JD Subscriber’s stock represents 9.90 per cent of CNLP’s enlarged issued share capital, with the shareholding of its biggest shareholder, Yupei International Management, slipping to 24.29 per cent from 26.95 per cent, CNLP said. JD.com starts marketing overseas properties to its 300m online buyers “JD.com is the largest tenant of the group and its investment will ensure a high occupancy rate of the logistics facilities. It will also reduce the company’s debts,” said Kenneth Cheuk, chief financial officer and executive director of CNLP. The company’s debt to total assets stands at about 35 per cent, according to Cheuk. Li Shifa, chairman and president of CNLP, said in a statement that JD.com’s promise to undertake a lock-up period of the shares for six months shows it is confident about CNLP’s prospects. JD.com’s entitlement to nominate one director to its board also indicated its commitment to developing the group, Li added. China’s e-commerce market continues to create intense competitive pressures, driving companies to develop logistics facilities and capabilities to control costs and quality through their own networks. Last week, JD.com’s American depository receipts in the US fell to their lowest intraday level in about a year. That came even after JD.com posted better than expected full-year revenue in March, which rose by 40.3 per cent to 362.3 billion yuan (US$57.21 billion) in 2017. Automated shops, drone delivery on the menu as China’s JD.com looks to boost e-commerce in Hong Kong Headquartered in Shanghai, CNLP is China’s second-largest supplier of premium logistics facilities after GLP, according to property consultant DTZ. As of December 2017, the company’s logistics facilities portfolio reached 3.1 million square metres and it had facilities in 27 logistics parks in 14 provinces or municipalities. CNLP’s revenue increased by 49 per cent from a year earlier to 403.9 million yuan in 2017. Profit attributable to the owners of the company rose by 22 per cent to 885.8 million yuan. As of December 31, 2017, it had a gross floor area of about 3.6 million square metres.