ALI AND JINGDONG ENTER LAND MARKET WITH BIG PLANS FOR LOGISTICS REAL ESTATE
2014-06-10
With Alibaba¡¯s Cainiao Logistics already covering over 300 cities in China, the group usually acquires land by the hundreds of acres for every new project. Jack Ma has even become known as ¡°Landlord Ma¡±, largely due to his strong belief that ¡°he who owns land is king¡±.

Ali is now on the verge of acquiring 247 acres in Tianjin for a new CNY3 billion logistics center; other notable investments include 165 acres in Chengdu (Sichuan) for a warehouse facility, 247 acres in Jinhua (Zhejiang) for a logistics park and some land acquisitions in Guangzhou, Shenzhen (Guangdong) and Shanghai.

Great minds think alike. And Liu Qiangdong, like Ma, recognized the opportunity: after starting in 2007, his logistics business Jingdong grew to reach over 230 acres in 2011. Today, its logistics and warehouse centers cover 1,105,300 sqm in 13 cities such as Beijing, Shanghai, Wuhan or Guangzhou. By December 31, Jingdong had already built 82 warehouse centers totaling 1,300,000 sqm and logistics centers in 34 cities.

While one of the reasons Ali and Jingdong entered the logistics real estate market was to tackle China¡¯s notorious logistics and warehousing development bottleneck issue, a far more important factor was the land appreciation opportunity: after timely purchases at very favorable prices, land appreciation of their logistics real estate should have a considerable impact on their respective asset valuation in the future.

 

Source: Winshang.com

Edited by: Royal Seal Group International