Terms of Guarantor's Disposal of Collateral in Real Estate Trust Plan

China Real Estate Trust was gradually developed after the trust industry resumed in July 2002. Previously, the trust industry has been in a dilemma of lack of business after many large-scale adjustments. At this time, the real estate market presents a strong development momentum, while most real estate development enterprises in capital-intensive industries have less funds of their own, and the shortage of funds is a long-term state. The flexibility of trust system and its unique function of property isolation and right reconstruction can make financial innovation in property right mode, income right mode and preemptive right mode, making it one of the best financing methods.

The combination of the two has achieved a win-win result. On the one hand, the trust industry grows and shares the high profits of the real estate industry; On the other hand, the financing of real estate trust plan can reduce the overall financing cost of real estate development companies, raise funds flexibly and conveniently, and the interest rate of funds can be adjusted flexibly.

In the fourteen years since 2002, real estate trust * * * experienced two golden development periods, 2003 and 2008.

According to statistics, in 2003, about 7 billion funds entered the real estate field through trust, and real estate trust products officially entered the eyes of investors and entered a stage of steady development. Because, in June, 2003, the People's Bank of China issued the Notice of the People's Bank of China on Further Strengthening the Management of Real Estate Credit Business (document of the Central Bank 12 1), which raised the credit threshold of development loans, land reserve loans, individual housing loans and individual housing provident fund loans in the real estate development chain.

For example:

1. Loans in any form shall not be granted to projects that have not obtained land use right certificates, construction land planning permits, construction project planning permits and construction permits.

2, commercial banks to apply for loans to real estate development enterprises, only through the real estate development loan subjects, it is strictly prohibited through real estate development liquidity loans and other forms of loan subjects.

3. The loan issued to the land reserve institution is a mortgage loan, the loan amount shall not exceed 70% of the assessed value of the acquired land, and the longest loan period shall not exceed 2 years.

4. The borrower applies for a personal housing loan to purchase the first self-occupied housing. The down payment ratio is 20%; For those who purchase more than the second set (including the second set), the down payment ratio shall be appropriately increased.

5. The loan-to-deposit ratio of the borrower applying for personal commercial housing loan shall not exceed 60%, and the longest loan period shall not exceed 65,438+00 years.

These measures make it more difficult for real estate enterprises to borrow money from banks. Have to seek financing from the trust company. Thus the real estate trust ushered in the first golden development period.

From March 2007, the central bank raised interest rates for the first time, and from June 5438 to February, the central bank raised interest rates six times in a row. At the same time, the China Banking Regulatory Commission issued nine new regulations, prohibiting banking financial institutions from issuing loans to real estate development enterprises that do not meet the loan conditions, such as the project capital ratio is less than 35% (excluding affordable housing) and real estate enterprises have financing difficulties again. Real estate trust products once again ushered in the peak of issuance.

Since then, with the soaring housing prices, the hot real estate trust in the real estate market has been heating up all the way.

The real estate industry is a special industry. Compared with other industries, it has obvious characteristics of high income and high risk. It has a strong driving force for economic development and is an important pillar industry related to the national economy and people's livelihood, stimulating economic growth and improving residents' living conditions. At the same time, it is a capital-intensive industry, and its development cannot be separated from the support of the financial industry. The two industries interact and depend on each other. At the same time, the real estate industry is the key area of national macro-control, and it is both love and hate, which can be described as success and failure of Xiao He, which also doomed the cyclical fluctuation of the real estate industry to be more obvious.

So now trust companies have several major business directions:

First, seize the opportunity of residential real estate projects in first-tier cities, especially the opportunity brought by small and medium-sized developers withdrawing from the market due to poor capital strength.

Two, combined with asset securitization business, appropriate intervention in first-tier cities and key second-tier cities office projects. The development law of the office market and the residential market is not exactly the same. It has the characteristics of definite basic assets, stable cash flow and measurability, and is an important basic asset of asset securitization.

3. Participate in the establishment of real estate M&A fund. At present, the overall prosperity of China's real estate industry is declining, structural inventory is high, and there is a widespread problem of high leverage in the industry. Coupled with the intensified competition, the survival of the fittest, industry integration and concentration enhancement will become the trend, and there will be a lot of M&A opportunities in the industry in the next few years. On the one hand, trust companies can consider setting up opportunistic M&A funds in cooperation with first-line developers and insurance companies to play a role in providing target projects and M&A financing. In addition, we can also cooperate with long-term capital such as insurance companies and leading real estate funds at home and abroad to set up cross-cycle M&A funds.

Fourth, pay attention to the renovation projects of old buildings in first-tier cities and key second-tier cities. In mature markets, it is a mature real estate operation mode to acquire, transform and upgrade the old buildings in the city center as a whole, and realize profit withdrawal through leasing, selling or other capitalized operation modes. At present, the first-and second-tier cities in China have also accumulated a large number of old buildings. How to revitalize this stock is a test of the professional, overall operation and capital operation ability of asset management institutions. At present, many foreign funds and some domestic capital have begun to enter this field.

5. Strategically pay attention to business opportunities in the fields of consumption upgrading and big health, such as tourism real estate and pension real estate.

Real estate trust has a very market-oriented pricing model, which can reflect many factors such as project risk and market liquidity. On the whole, however, because the risks of real estate projects undertaken by trusts are slightly higher than those of banks, the overall financing cost is relatively high, and the rate of return obtained by investors is also high. The remuneration obtained by trust companies is 2-3%, and there are other expenses. The overall financing cost is slightly higher than other types of trusts, and the specific pricing varies according to the credit level of the financier.

Several modes of real estate trust operation

1, real estate credit trust

Real estate credit trust Real estate credit trust mainly refers to real estate loan trust, which is a kind of trust business that uses trust funds to issue loans to real estate development enterprises.

According to the requirements of the regulatory authorities, the "four, three and two" conditions need to be met when granting loan trusts to housing enterprises:

Four syndromes:

State-owned land use certificate

Land use permit

planning permit of construction engineering

building construction permits

Thirty percent:

The investment ratio of self-owned funds reaches 30%

The second level:

Have the second-class qualification of real estate development.

Real estate creditor's rights trust mainly focuses on the recovery of the due principal and interest of the trust, and needs to pay attention to the solvency of the financing party, the feasibility of the financing project, the value and liquidity of the collateral, and usually sets up risk control measures such as collateral, fund account supervision, joint liability of shareholders or actual controllers, and principal installment payment plan. (Most real estate trusts in the market belong to this type, and trust companies lend directly to real estate enterprises in the form of loans. )

Real estate credit trust is simple and easy to operate, and it is also the best and most commonly used way to use trust funds. However, the real estate creditor's rights trust has higher requirements for loan conditions, and some financing needs that do not meet the requirements cannot be met. Moreover, this trust business model will enhance the financial leverage of housing enterprises and reduce their follow-up financing space.

2. Real estate equity trust

Real estate equity trust Real estate equity trust mainly refers to a trust business that uses trust funds to obtain the equity of real estate enterprises in order to provide them with development and construction funds.

Equity acquisition method:

Transfer the shares of the original shareholders

Extra shares

Invest in a new project company

Compared with creditor's rights trust, real estate equity trust has less strict compliance requirements and can meet the financing needs of real estate enterprises during the period of land acquisition and incomplete four certificates. Equity financing is also conducive to beautifying the financial statements of real estate enterprises. In some cases, as a bridge fund, apply for a development loan from the bank after the four certificates are complete to realize the withdrawal of trust funds. Many real estate equity trusts are attached with repurchase agreements, which are actually fake stocks and real debts; There are still some equity investment trusts that only get a small amount of funds to acquire the equity of real estate enterprises, and most of the remaining funds are used for the development and construction of real estate projects in the name of shareholder loans, which actually reduces the uncertainty of equity investment income and effectively relies on the regulatory requirements of real estate loan trusts.

The focus of real estate equity trust is whether it can finally withdraw when it expires. For those who have a repurchase agreement, it is necessary to pay attention to whether the repurchaser can fulfill the repurchase obligation. At the same time, trust companies need to fulfill the rights and obligations of shareholders and participate in major decisions, which is conducive to safeguarding their own interests. From the perspective of risk control means of real estate equity trust, firstly, structural design is generally adopted to improve the investment safety of priority investors through secondary beneficial rights; In addition to the remaining shares already owned, provide pledge, thus completely controlling the operation of housing enterprises; Fully participate in the decision-making of major issues, master various seals such as finance and official seals and online banking keys, and in some cases hire external companies to supervise the construction of financing projects; Financing project mortgage, etc. ; The right to dispose of assets in case of default, etc.

3. Real estate property trust

Real estate property right trust refers to a kind of trust business with all kinds of property rights owned by real estate enterprises or real estate owned by individuals as trust property.

(1) Property right trust of housing enterprises as customers

The trust established with all kinds of property rights owned by real estate enterprises as property rights is still to meet the investment and financing needs of real estate enterprises' project construction, but here the real estate enterprises are the clients, and a small part of property rights are divided and transferred to qualified investors to obtain development funds. However, at present, most of the property rights in the market will still be accompanied by repurchase agreements to realize investors' fixed income, which is a modification of the trust financing transaction structure or an evasion of the existing regulatory policies. The entrusted trust property can be the usufructuary right of a specific asset, such as the usufructuary right of land, the usufructuary right of projects under construction, the usufructuary right of equity, creditor's rights, etc. Although the trust of specific assets usufruct has been carried out for many years, there are still some disputes under the current legal system in China, and this trust has yet to be tested by judicial trial.

At present, the essence of real estate property trust is still a financing tool, not the income of the underlying assets, so its focus still depends on the performance ability of the repurchase obligor, mainly the solvency and willingness to repay debts. Its risk control measures and transaction structure are basically similar to those of real estate credit trust and real estate equity trust.

(2) Real estate trust with individuals as clients.

It is a trust mode that individuals set up their own property as trust property, with the purpose of property management and property inheritance. This mainly depends on the professionalism of trust companies to maintain and increase the value of real estate and realize the orderly inheritance of wealth. This kind of real estate trust can be further divided into real estate development trust, real estate management trust and real estate disposal trust.

Real estate development trust mainly refers to the land owned by the client as trust property, and the trust company is responsible for hiring construction companies and financing in the process of real estate development. After the real estate construction is successful, the proceeds will be distributed to the beneficiaries or the finished houses will be distributed to the beneficiaries through leasing. But this kind of business is mainly suitable for countries with private land property rights such as Europe and America.

Real estate management trust mainly refers to a kind of business that trust companies effectively manage real estate as trust property according to the wishes of clients or the maximization of beneficiaries' interests. This kind of trust is common in the United States, Japan and Taiwan Province Province of China. In Japan, individuals can set up real estate trusts, and trustees can manage and lease trust property to realize the preservation and appreciation of real estate. In Europe and America, the establishment of real estate trust can ensure the orderly inheritance to the heirs after death, and the heirs can avoid directly obtaining real estate and selling it.

Real estate disposal trust mainly refers to a trust business in which the client entrusts the real estate to a trust company, especially helps to dispose of the real estate through sales, and finally distributes the cash to the beneficiaries.

This kind of business has not been carried out in China, on the one hand, because the current trust legal system is not perfect, including trust property registration, trust tax and many other obstacles, on the other hand, trust companies are not professional enough in real estate management and the market demand is not high. But from the perspective of future development, this kind of business still has a certain market space.

4. Real estate asset securitization trust

Asset securitization includes all kinds of financial claims and all kinds of real estate. Real estate asset securitization, also known as real estate investment fund trust, is an important type of real estate asset securitization, which means that investors invest their funds in real estate managed and guaranteed by professional institutions in the form of bond investment, and obtain stable and efficient returns through the management of professional institutions. The main purpose of REITs is to share the predictable and stable return of real estate investment with investors in the form of dividends. Real estate investment trusts began to rise in the United States in the early 1960s. So far, REITs have been established in developed countries and regions in Europe, America and Asia. There are about 300 real estate investment trusts in the United States, with total assets exceeding $300 billion, of which nearly two thirds are listed on the national stock exchange. At present, nearly 40 countries have successfully launched real estate investment trust funds.

Different from general trust products, REITs have distinct characteristics. Its investment cycle is long, mainly based on mature commercial properties, and the source of funds is mostly in the form of public offering, which has restrictions on investment targets (restricted development projects) and even geographical restrictions. It is a public investment tool with strict supervision. Each REITs fund unit represents a certain proportion of real estate ownership, backed by fixed assets, so it is easier to be used for pledge or secured financing, and the acquisition of real estate requires independent legal personality. At the same time, REITS are also subject to strict supervision. According to the regulatory requirements of the United States, France and other major countries, REITS need to go through regulatory approval or filing before they are issued. Generally, trust system or company system is adopted to realize bankruptcy isolation. Most of them have no minimum registered capital requirements. About 75% of the funds need to be invested in real estate with stable income, and about 90% of the income needs to be distributed every year. Generally, only dividends received by investors are taxed, thus avoiding double taxation. (At present, the pilot has been restarted in China)

5. Subsidize real estate trusts

At present, there are many ways to use funds in the fund-based real estate trust market, that is, real estate fund trust, to improve the efficiency of the use of trust funds. Fund-based real estate trusts mainly invest in the real estate industry. Through the use of equity, creditor's rights, property holding, reorganization of non-performing real estate projects and other forms of funds, and a form of trust operation in which multiple real estate projects are managed in combination, trust companies can cooperate with professional private real estate institutions or large real estate development enterprises to achieve strong alliances, give full play to their respective advantages, and realize the full-cycle and all-round operation of real estate projects.

The entrusted funds accepted by the trust company are invested in a number of real estate projects by various operators such as equity, creditor's rights and property holding. This model adopts the way of portfolio investment, which is conducive to diversifying risks and selecting the most suitable real estate projects, thus maximizing the interests of beneficiaries and improving the reward level of trust companies. Of course, this mode of operation requires the trust company's professionalism and real estate operation ability, so the trust company will cooperate with other professional institutions.

Let's talk about what should be focused on in the project.

Several key indicators to judge the risk of real estate trust products are as follows:

Whether there is sufficient collateral (the general collateral evaluation value is more than 2 times of the trust financing amount), and the collateral has high liquidity during disposal (generally, the housing with rigid demand is easier to dispose of);

2. Whether there is a strong market demand in the regional location of the project (the demand for residential projects in first-and second-tier cities is still relatively strong at present (it is hard to imagine in second-tier cities in Shenzhen), and the projects in third-and fourth-tier cities are best located in the regional core area);

3. What is the strength and background of the developer (an important indicator to measure the strength of the real estate developer is the sales ranking and conversion rate, and its past performance can also be vertically investigated and compared);

4. What is the character of the actual controller (investors can focus on the family background of the actual controller, whether there have been bad credit records and negative news reports).

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.