JD Property Expands into Middle East with Abu Dhabi Airport Project

Jingdong Property has notched its first deal for a greenfield project in the Middle East as the infrastructure investment and management division of Chinese ecommerce giant JD.com continues to expand globally.

JD Property said in a statement earlier this month that it has signed a partnership agreement with Abu Dhabi Airports, which operates the Emirate’s Zayed International and other airports, to jointly develop and operate a logistics facility at the ADAFZ Logistics Park in the Abu Dhabi Airports Freezone. 

“This signing marks an important milestone for both sides, and we highly value the trust and support from our partner,” said JD Property chief executive Cao Dong. “We have great respect for the UAE market and are committed to bringing our expertise and resources to support the country’s logistics infrastructure development and e-commerce capabilities.”

JD Property has unveiled its Middle East venture following landmark acquisitions in Australia, Japan and the UK in recent months while the company’s shipping systems and operations sister firm, JD Logistics, has also been expanding in Europe, Asia and North America in response to customer demand.

Developing Middle East Supply Chains

With a planned construction area of approximately 70,000 square metres (753,474 square feet), the  partners are planning the Abu Dhabi Airports Freezone project as a key logistics gateway supporting the Middle East’s growing cross-border e-commerce demands and enhancing air freight and distribution services across the Gulf Cooperation Council (GCC) countries as well as in the broader Middle East and North Africa (MENA) region.

“This joint venture aligns seamlessly with Abu Dhabi’s long-term vision of becoming a global trade and logistics hub,” said Elena Sorlini, managing director and chief executive of Abu Dhabi Airports.  “By combining (JD Property’s) modern infrastructure and integrated end-to-end service capabilities with our strategic location and air cargo expertise, we are laying the foundation for a logistics ecosystem that fosters investment, generates high-value employment, and strengthens Abu Dhabi’s role in global supply chains.”

The logistics project is designed to incorporate automation and digital warehouse management systems powered by JD.com’s proprietary technology stack, according to the statement, with the partners predicting that resulting improvements in efficiency would benefit both local and international merchants by lowering logistics costs, reducing delivery times, and minimizing operational risks.

JD Property announced the greenfield development project just over one month after the company revealed its inaugural warehouse asset in the Middle East with the successful completion of its first logistics infrastructure acquisition in Dubai’s Jebel Ali Free Zone (JAFZA). 

Set to be operated by JD Logistics, which will provide supply chain logistics services for a well-known manufacturer of smart electronic devices, JD Property says the JAFZA project will introduce a “smart warehousing and digital operations” model and will serve as a pilot for future projects in a broader strategic network.

“This project elevates our logistics service standards in the region through intelligent infrastructure and digital management systems,” a JD Property Middle East spokesperson said. “More importantly, as a responsible corporate citizen, JD.com adheres to a ‘long-termism’ philosophy, supporting local economic diversification and value growth through sustained localized investments,” they added.

In June JD Logistics launched its B2C JoyExpress delivery service in Saudi Arabia, where it is establishing a network of warehouses, and delivery stations as well as transfer and sorting centers.

Global Moves

As JD.com’s infrastructure development and management arm, JD Property now manages more than 40 overseas projects across eight countries, including Indonesia, Vietnam, Singapore, the UK, the Netherlands, Germany, Japan, and the UAE, according to the statement.

Earlier this month JD Property announced its acquisition of a grade A warehouse project in Rugby, England. Designed to earn an Excellent certification under the UK’s BREEAM standard for sustainable buildings, the 23,000 square metre facility will bring JD Property’s portfolio in the country to 11 assets spanning more than 250,000 square metres of gross floor area upon completion.

In April, JD Property entered the Australian market through an agreement to buy a Brisbane industrial estate from an ESR-led venture, with market sources who spoke to Mingtiandi confirming a deal value of A$240 million ($152.5 million). 

That deal Down Under followed JD Property’s December debut in Japan where it picked up a pair of warehouses in Chiba and Nagoya with a combined appraised value of JPY 35 billion ($220 million), according to market sources who spoke with Mingtiandi, with the seller identified as industrial giant GLP.

In October of last year JD Property acquired the LiFung Centre in Hong Kong from London-based M&G Real Estate for HK$1.8 billion ($232 million), in the city’s largest en-bloc industrial transaction so far this year.

During May JD Logistics opened its first self-operated warehouse in Mexico as part of a broader Latin American expansion following the company’s South Korean debut in April when it opened logistics centres in Icheon and Incheon.