JD.Com Pays USD398 Million for Beijing's Jade Palace Hotel to Expand R&D Space
Liao Shumin
/SOURCE : yicai

(Yicai Global) Feb. 12 -- An affiliate of  Chinese e-commerce platform JD.Com has acquired a large unprofitable  hotel next to its first office space in Beijing to turn it into research  and business facilities. 

Jingdong Shangke Information Technology  paid USD398 million to buy all the equity of Jade Palace Hotel. Liu  Qiangdong, also known as Richard Liu, the founder and chief executive of  JD.Com, is the legal representative of the buyer, business information  platform Tianyancha shows. 

Founded in 1998, JD.Com set its first  office in Zhongguancun Street in Beijing's northwestern Haidian  district, originally known for its consumer electronics shops. The area  has grown to be coined as 'China's Silicon Valley' with Baidu and Sina  settling in the evolving tech hub.

The acquisition is based on long-term  positioning and development, JD.Com told Yicai Global, adding that the  hotel will be transformed into offices for technology research and  development, as well as business purposes.

Jade Palace Hotel, which has an office  space of over 9,000 square meters and more than 300 rooms, achieved  revenues of CNY18 million (USD2.7 million) as of last September. Losses  were CNY47.1 million and its liabilities exceeded assets. 

Editor: Emmi Laine 

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Keywords: JD.Com , Beijing Jade Palace , Acquisition , Zhongguancun