Ways and means of financing for real estate developers

First, listed financing housing enterprises can quickly raise huge amounts of funds through listing, and the raised funds can be permanently used as registered capital, with no fixed repayment period. Therefore, it has great advantages for some large-scale development projects, especially commercial real estate development. Some large and medium-sized enterprises with development potential and eager to expand their scale and capital can also consider buying (borrowing) shell financing. ?

Second, overseas funds At present, foreign real estate funds generally have the following two ways to enter the domestic capital market: one is to apply to the China Municipal Government for special permission to operate real estate projects or purchase non-performing assets; The second is to set up investment management companies to legally circumvent restrictions and realize the legal circulation and recovery of funds through direct or indirect means such as buying back houses, buyouts and leasing. The cooperation between overseas funds and domestic real estate enterprises is characterized by high concentration. Overseas funds invest in China real estate, and most of them choose large real estate enterprises, which require high reputation, scale and strength. However, compared with other enterprises, powerful developers have wider financing channels, and the cost of overseas funds is higher than that of bank loans, trusts and other financing channels. Therefore, the influence of overseas funds in China real estate is still very limited. ?

Third, joint development Joint development is a way for real estate developers and operators to develop real estate projects in a cooperative way. Joint development can effectively reduce investment risks and realize the sustainable development of commercial real estate development and commercial network construction. Most developers hold the business idea of selling houses and leaving people, so they can't make perfect planning and long-term operation of commercial real estate projects. Therefore, it is easy for developers to sell hot at that time, but the commercial city and commercial street are getting more and more depressed after they leave. The cooperative development between developers and operators can achieve the consistency of goals and strategies in the process of real estate development and reduce the possibility of the above phenomenon. ?

Four, mergers and acquisitions Under the influence of the national macro-control policies, there will be two contrasting situations in the real estate market: on the one hand, some small and medium-sized real estate enterprises that have land resources but lack the cost of development funds have stopped the construction of a large number of projects because they cannot raise funds. Only by entering the market as soon as possible to develop land can they ensure that the land will not be recovered; On the other hand, some large real estate enterprises with strong financial strength have no land in their hands, so they seize the opportunity to acquire small and medium-sized enterprises and high-quality real estate projects, so as to achieve rapid expansion of scale. ?

Verb (abbreviation of verb) REITS At the end of 2003, China's first commercial real estate investment trust plan "French Auchan Tianjin First Store Fund Trust Plan" was launched in Beijing, representing the embryonic form of China Real Estate Trust Fund (REITs). However, the lack of diversification of real estate investment and participation in the development process of real estate make the previous REITS products in China's market very different from those in the international real sense. The risk-return characteristics of REITS are: low equity capital and high liquidity; Secondly, the income is stable, the fluctuation is small, the market return is high, and you can also enjoy tax incentives, and the shareholders' income is high; At the same time, REITS implement professional team management, which effectively reduces risks. ?

6. Real estate bond financing: Financing enterprises have high conditions, and it is difficult for small and medium-sized real estate enterprises to get involved. Coupled with the imperfect operation mechanism of China's corporate bond market and some defects of corporate bonds themselves, most domestic real estate enterprises do not adopt this financing method. ?

7. mezzanine financing mezzanine financing is a trust product between equity and creditor's rights. In the field of real estate, mezzanine financing often refers to other subordinated debt or preferred stock that does not belong to mortgage loans, and is often a combination of different creditor's rights and equity. In China's real estate financing market, mezzanine financing, as a variant of real estate trust, has strong maneuverability. The most direct reason is that mezzanine financing can bypass the policy that developers of newly issued real estate collective fund trust plan must have complete "four certificates", more than 35% of their own funds and have secondary development qualifications. Compared with REITS, mezzanine financing can solve the emergency financing problem before the "four certificates" are complete. ?

Eight, the real estate trust financing firewall is the legal and institutional advantage of the trust product itself. Trust property is neither an asset nor a liability of a trust company. Even if the trust company goes bankrupt, the trust property will not be affected by liquidation, thus achieving risk isolation. In addition, trust is very flexible in supply mode, and personalized trust products can be designed according to the operational needs of real estate enterprises and specific projects. The main defects of trust financing are: first, the financing scale is small; The second is poor liquidity. Due to the strict restrictions of "one law and two regulations", it is far from meeting the growing demand of investors for transfer; The third is the restriction on private placement, that is, it is stipulated that there should be no more than 200 fund trust plans, which is equivalent to raising the threshold for investors. ?

9. Project financing Project financing refers to that the project undertaker (i.e. the shareholder) establishes a project company to operate the project, with the project company as the borrower to borrow the loan, with the cash flow and income of the project company as the repayment source and the assets of the project company as the collateral for the loan. ?

Ten, developers discount entrusted loans developers discount entrusted loans refers to the real estate developers to provide funds, entrust commercial banks to issue entrusted loans to buyers of their commercial housing, and the developers subsidize the interest for a certain period of time. Its essence is a "seller's credit". Developers discount entrusted loans to provide discount to consumers who buy houses, which is beneficial for residential real estate developers to withdraw funds in the real estate sales stage, can avoid debt and financial crisis of real estate development enterprises in the case of temporary poor sales, and can solve the financing bottleneck problem for some powerful real estate enterprises. ?

XI。 Short-term financing bonds Short-term financing bonds refer to securities issued by enterprises in accordance with legal procedures, and promise to repay the principal and interest within 3 months, 6 months or 9 months to solve the temporary and seasonal short-term capital needs of enterprises. Short-term financing bonds have the characteristics of flexible interest rate, flexible term, quick turnover and low cost, which undoubtedly provides a possible choice for China real estate industry, which is short of funds at present. Short-term financing bonds are not legally binding on real estate enterprises of different sizes, but as far as the current situation is concerned, because the issuance of short-term financing bonds is underwriting, underwriters must give priority to enterprises with good qualifications and large issuance scale from their own interests. ?

Twelve. Financial Lease According to the Contract Law, a real estate financial lease contract refers to that after the lessee selects a house by himself or through the lessor, the lessor buys the house from the real estate seller and gives it to the lessee for use, and the lessee pays the rent. ?

13. real estate securitization is a financial transaction process that directly converts low-liquidity non-securities real estate investment into securities assets in the capital market, thus transforming the relationship between investors and investment objects from direct property ownership to securities owned by creditor's rights. Real estate securitization includes two basic forms: real estate project financing securitization and real estate mortgage securitization. China is in the initial stage of implementing real estate securitization, and the ongoing securitization of housing mortgage loan is its realistic starting point.

In a narrow sense, financing is the behavior and process for enterprises to raise funds, that is, according to their own production and operation status, capital ownership status and future business development needs, through scientific prediction and decision-making, certain methods are adopted to raise funds from investors and creditors of enterprises through certain channels and organize the supply of funds to ensure the normal production needs and business management activities of enterprises.

Broadly speaking, financing is also called finance, that is, the financing of monetary funds and the behavior of the parties to raise or lend funds in the financial market in various ways. "New palgrave Dictionary of Economics" explains financing: financing refers to the monetary transaction means to pay for purchases that exceed cash, or the monetary means to raise funds for the acquisition of assets.

References:

Financing-Baidu Encyclopedia