JD Property Buys UK Logistics Campus to Cap Year of Global Expansion

Jingdong Property, the logistics real estate investment division of China’s JD.com, has acquired a logistics campus in England’s East Midlands region which provides the potential to add 909,000 square feet (84,448 square metres) to a rapidly expanding UK portfolio.

The acquisition near Leicester, the largest city in the East Midlands, includes two warehouses with a combined area of over 231,000 square feet and an adjacent greenfield site that can be developed into up to 678,000 square feet of industrial space, JD Property said in a release, without identifying the property. 

With JD Property’s UK portfolio standing at around 3.9 million square metres prior to the acquisition, the company positioned the deal as a sign of its ambitions for the market. 

“Our new UK investment strengthens Jingdong Property’s investment footprint in the market, and reflects our long-term commitment to supporting regional economic development and enhancing the local supply chain ecosystem as one of the most active industrial and logistics investment managers in the market,” said Kai–yan Lee, regional CEO for JD Property Europe and the Americas.

Golden Triangle Asset

The specifications and images of JD’s latest UK acquisition effectively identify the property as Griffen Park, a logistics hub in Desford, seven miles (11 kilometres) west of Leicester, which was developed by London-based logistics developer and fund manager Griffen. 

With the facility located in the UK’s ‘Golden Triangle’ logistics cluster, the seller had already secured planning permission for an additional two buildings in the second phase of Griffen Park’s development prior to the transaction, according to Griffen’s website. 

Griffen had acquired the project in 2020 under a sale-and-leaseback deal with third-party logistics provider Neovia Logistics, with both units in the development completed in 2023.

Unit 1 in Griffen Park offers 117,018 square feet of warehouse space and two storeys of office spanning 8,826 square feet. Griffen announced in July 2023 it had let the property to American construction equipment maker Caterpillar under a 10-year lease at a base rent of £8.4 ($11.3) per square foot.

Unit 2, which comprises 96,445 square feet of warehouse space and 7,234 square feet of office, remains available for letting, according to Griffen’s website. Both warehouses have received BREEAM Excellent and EPC A ratings, with features including rooftop PV panels and the use of recyclable materials throughout.

JD Property said it will develop the greenfield space in the campus into Grade-A logistics space, supporting occupiers seeking advanced and efficient warehousing solutions.

“The assets will benefit from Jingdong Property’s strong expertise in developing, operating and managing industrial and logistics space, ensuring the delivery of best-in-class industrial warehousing infrastructure and services that support the evolving needs of both the existing and future occupiers,” said Lee.

Active Expansion

The Leicester acquisition expands a portfolio which JD Property began building in 2022 when it entered the market with the acquisition of a 361,000 square foot warehouse in Milton Keynes. Then In July, the firm acquired a 247,570 square foot warehouse in Rugby, England. 

The Griffen Park acquisition expands JD Property’s warehouse footprint in the UK to nearly 3.93 million square feet, including pipeline projects.

The company has also been expanding closer to home this year, including having teamed up with Rava Partners-backed EZA Hill to purchase four Singapore industrial properties from CapitaLand Ascendas REIT for S$306 million ($236.6 million) in a deal which closed earlier this month. 

JD Property made its Japan debut in December last year with the purchase of a pair of warehouses in Chiba prefecture near Tokyo and in Nagoya. The company followed up in April with a deal to buy a Brisbane industrial estate from an ESR-led venture for A$240 million ($152.5 million). 

In June, JD Property picked up a 10,000 square metre warehouse in Dubai’s Jebel Ali Free Zone for its first logistics acquisition in the Emirate.