By Tracy Qu
Chinese e-commerce giant JD.com has agreed to purchase a 50% stake in Hong Kong's CCB Tower from Lai Sun Development for 3.5 billion Hong Kong dollar, equivalent to $449.74 million.
The news was first announced in a filing by Hong Kong-based Lai Sun Development to Hong Kong Stock Exchange on Tuesday. JD.com confirmed it is the buyer on Wednesday.
CCB Tower is a 27-storey office in city center of the Asia's financial hub.
The deal will bring an estimated net cash inflow of about HK$2.4 billion cash flow to Lai Sun Development, which will help it to reduce borrowings and strengthen its financial position, according to the filing.
"JD.com remains confident about its business prospects in Hong Kong," the e-commerce company said in a statement.
The deal is expected to be completed in January, filing shows. JD.com will use the building as its offices, according to a person familiar with the matter.
Shares of Lai Sun was flat in afternoon trading, while JD.com dropped 0.6%. That compared with a 0.2% loss for the benchmark Hang Seng Index.
The news comes after Alibaba Group, along with its fintech affiliate Ant Group agreed to acquire the top floors of an office tower in a prime Hong Kong district for about $925 million as part of their global expansion plan.
Write to Tracy Qu at tracy.qu@wsj.com
(END) Dow Jones Newswires
12-10-25 0157ET
