What is the relationship between commercial real estate and REITs?

In the silver age, the trend of real estate financialization has become more and more prominent, and real estate asset securitization came into being.

The asset securitization model represented by REITs has become one of the mainstream of real estate financial innovation. For developers, this is not only a financing channel for enterprises to become stronger and bigger, but also a catalyst to resolve the current high inventory of commercial real estate.

Moreover, compared with financial institutions actively issuing innovative real estate financial products a few years ago, at present, developers' active financial innovation has occupied the mainstream. Developers are scrambling to embark on the road of light assets, optimize the capital structure, reduce the cost of capital and revitalize the stock through real estate asset securitization.

From a macro perspective, by attracting mature institutional funds into the commercial real estate industry, changing the current situation that the commercial real estate industry mainly relies on bank loans and traditional bond market financing is conducive to destocking, deleveraging and cost reduction, which is conducive to resolving real estate financial risks and promoting the structural reform of the real estate supply side.

REITs-like rhythm accelerated

20 17 At the beginning of the new year, Huayuan Real Estate and Hengtai Securities Co., Ltd. (hereinafter referred to as "Hengtai Securities") successfully issued REITs-like asset-backed securities (Hengtai Hongze-Huayuan Du Ying Commercial Asset Support Special Plan) with a scale of 736 million yuan in the inter-agency private offering and service system.

As a pioneer in exploring REITS of state-owned enterprises in the capital, the REITs-like products issued by Huayuan Real Estate realized the equity transfer of assets of Huayuan Du Ying through the establishment of special asset support plan and contractual private equity fund.

Moreover, the relevant person in charge of Huayuan said that this move is to tap the market value of the company's deposited assets, and promote the transformation from "heavy assets" to "light assets" by opening up the whole industrial chain of commercial real estate from development and construction to management and operation to asset securitization.

In Shenzhen real estate market, there is also the first commercial project of asset securitization. On February 9th, Yitian Finance announced the establishment of Shenzhen Yitian Holiday Plaza Asset Support Special Plan (ABS).

The asset support special plan is represented by Cinda Securities, with Cinda Securities as the manager and sales organization and China Construction Bank as the custodian. The total valuation of Shenzhen Yitian Holiday Plaza is 84150,000 yuan, the target scale of priority A asset-backed securities is 2.5 billion yuan, the target scale of priority B asset-backed securities is 2.536 billion yuan, and the target scale of sub-asset-backed securities is 265 million yuan, with a total scale of 5.3 billion yuan.

In addition to Huayuan and Yitian, Vanke, Wanda, Country Garden and other large housing enterprises have also made some attempts in real estate finance.

2065438+June 2005, Vanke and Penghua Fund launched the first domestic public offering REITs. In the same month, Wanda Finance joined hands with Kuaiqian Company to announce the launch of a crowdfunding financial product "Steady Profit 1", which is a REITs-like product with wanda plaza as the basic asset. All the funds raised were invested in Wanda City Commercial Plaza project, only rented but not sold.

20 16, the speed of asset securitization of housing enterprises accelerated. Agile Property Services Debt Asset Support Special Plan, Amare- Greenland Hotel Real Estate Investment Trust and Bosera Capital-Shimao Hotel Asset Securitization Project are all testing the water.

Among them, Country Garden issued three asset-backed securities for the final payment of house purchase last year, creating the first asset-backed securities supported by customers' contractual payment rights, which had a great impact on the domestic real estate industry.

Housing enterprises take the initiative in financial innovation.

Compared with the maturity of asset securitization in some developed countries, asset securitization in China is still in the primary stage.

Although in 2006, China Securities Regulatory Commission and Shenzhen Stock Exchange started the listing of REITs on domestic exchanges, so far REITs have not really landed in China, and there are still many restrictions on policies.

20 16 the real estate market in China's first-tier and hot-spot second-tier cities is overheated, and many new regulations on real estate regulation and control have been introduced to deepen the prevention of real estate market and financial risks. In this context, the financing channels of housing enterprises have been tightened.

At the same time, the transformation and diversified development of the real estate industry in the silver age has become an important concern of enterprises. Major housing enterprises actively promote cooperation with financial institutions, increase the scale of integration of industry and finance, and innovate financing.

In addition to financial layout through equity participation or mergers and acquisitions of banks and insurance institutions, real estate developers are gradually infiltrating into the fields of internet finance, trust, securities and equity investment funds. As an innovation of real estate finance, real estate asset securitization has attracted much attention.

The latest Report on the Development Trend of Real Estate Finance in China (20 16) issued by China Index Research Institute shows that at present, quasi-REITs products have been formed in China's real estate securitization, mainly domestic hotels and office buildings.

With the promotion of policy support and real estate asset securitization, its investment scope is expanding day by day, covering residential, commercial center, office building, retail center, industrial property and other special plans supported by basic assets such as income rights and creditor's rights.

According to Wonder data, as of June last year, there were 47,654.38 billion yuan of asset securitization products directly related to real estate, covering private equity REITs, quasi-REITs, securitization of capital income rights, securitization of property fees, and securitization of the final payment of house purchases.

China Index Academy pointed out that the innovative financing methods represented by REITs have huge room for future development.

Real REITs are also expected to land in China. On February 22nd, at the Shanghai seminar of China REITs Alliance, Wang Gang, Secretary General of China REITs Alliance, said that this year may become the first year of REITs. REITs related policies have been accelerated and are expected to be introduced this year.