(Yicai Global) Feb. 8 -- A real estate investment trust based on Chinese e-commerce giant JD.Com’s logistics parks, which raised CNY1.76 billion (USD259 million), began trading on the Shanghai stock exchange today. It is the first warehousing and logistics REIT issued by a private company in China. 

The trust, run by JD.Com subsidiary JD Property, was over-subscribed by a multiple of 126 during the pricing inquiry stage, Yicai Global learned from the bourse. The fund manager for the REIT issuance is Harvest Fund Management.

Regulators gave Beijing-based JD.Com the go-ahead for the issuance last December. Filings disclosed by the SSE at the time showed that the fund’s underlying assets are JD.Com’s three logistics parks located in Langfang, northern Hebei province, Wuhan, central Hubei province and the southwestern municipality of Chongqing. The floor area of the parks totals around 351,000 square meters, with a corresponding valuation of CNY1.57 billion. The occupancy rate is 100 percent. 

The successful listing will greatly stimulate the confidence of the private sector to invest in supply-chain infrastructure, which will also facilitate the digitization and intelligentization of the logistics industry, said Xu Ran, JD.Com’s chief financial officer. 

JD Property is in charge of warehousing logistics-related infrastructure, Pan Helin, co-chair of the digital economy and financial innovation research center at Zhejiang University’s International Business School, told Yicai Global. Raising funds through the REIT listing will be helpful for expanding investment, Pan noted, enabling the company to improve its logistics and delivery capability. 

JD Property’s business now covers 29 Chinese provincial-level regions. It also has 24 overseas infrastructure-related projects and manages industrial parks whose total area exceeds 20 million sqm. 

Editors: Dou Shicong, Tom Litting