How to do Vanke Asset Securitization?

2065438+On June 8th, 2005, Penghua Qianhai Vanke REITs Closed Hybrid Initiated Securities Investment Fund declared by Penghua Fund Management Company was formally incorporated.

Penghua Qianhai Vanke REITs is the first domestic public offering REITs fund officially accepted by China Securities Regulatory Commission at the end of April this year. In the interpretation of the market, this has already represented the signs that Public Offering of Fund's investment scope has been extended to the real estate field.

In the eyes of market participants, housing enterprises and fund companies set up REITs, which are used for the development and cultivation of commercial real estate after raising funds in the open market to obtain rental income, and then distribute the rental income to investors in the form of dividends. As a financing channel, REITS optimize the capital structure of housing enterprises and ease the financial pressure.

However, market participants still point out that the environment for operating REITs in China is not yet mature, and problems such as taxation and supervision have not been improved. The registration of Penghua Qianhai Vanke REITs does not mean that the conditions for promoting REITs are ripe.

It is too early to implement REITs on a large scale, but Penghua Vanke's trial of REITs has played a positive role in asking for directions.

What does Vanke REITs do?

According to the new media report of Viewpoint Real Estate, the fund manager of Penghua Qianhai Vanke REITs is Penghua Fund and the custodian is Shanghai Pudong Development Bank. On April 15, the CSRC received the application materials for raising funds submitted by Penghua Fund; A week later, the CSRC officially decided to accept the application for raising the fund.

The fund's target Qianhai Enterprise Building Project is located in Shenzhen Qianhai Free Trade Zone. It is a commercial project built by Vanke and Qianhai Administration in BOT mode (construction, operation and handover mode). Among them, Vanke invested about 800 million yuan in the construction project, recovered the investment after eight years of operation, and handed it over to Qianhai Administration for free after eight years.

The Qianhai Enterprise Mansion Project is also the first step taken by Vanke in industrial real estate. The total area of the project is about 90,000 square meters, and the total construction area is about 60,000 square meters. The project is divided into special zone pavilions and enterprise residential areas, including special zone pavilions with an area of about 1 1,000 square meters, 36 enterprise residences with a building area of about 200- 1 1,600 square meters, a business center with an area of about 3,300 square meters, commercial facilities with an area of about 3,000 square meters and a semi-underground parking lot with an area of about 6,000 square meters.

Vanke revealed that the object of this asset securitization is the rental income of Qianhai Enterprise Mansion in the next eight years, which may be but not limited to the income of conference center and office tenants, as well as other fixed-income assets investment.

According to its introduction, Qianhai Enterprise Mansion has a rentable area of 55,000 square meters, and currently earns a monthly income of 250 yuan per square meter, and the rental rate has reached 100%. In terms of income, the expected return on investment of closed hybrid public offering REITs is 8%, which is close to the return of REITs listed in Hong Kong of about 7%.

According to Vanke's plan, when the investment term expires, Vanke Shenzhen Branch or its related parties will buy back the equity of the project company.

In this regard, He Ling, senior manager of Savills Market Research Department, said in an interview with Viewpoint Real Estate New Media that only from the perspective of investment rate, Penghua Qianhai Vanke REITs reached 8%, which is quite high.

He Ling quoted data as saying that the return on investment of office buildings in Qianhai Free Trade Zone is about 3.8%, while that of residential buildings is only 2.5%. In contrast, the REITs income of Qianhai Enterprise Mansion is 8%, but how to realize it is still unknown.

"Generally speaking, the income of REITs mainly has two parts, namely rental income and property appreciation. In particular, high-quality properties do not exclude 8% of the proceeds. "He Ling pointed out that the rent of Vanke Enterprise Mansion is at a high level, but in this case, the occupancy rate is still 100%, indicating that the market has a positive attitude towards it; In addition, the development of Qianhai Free Trade Zone has also given the project a good appreciation potential.

In addition, Tan Huajie, the director of Vanke, also said in an interview with Viewpoint Real Estate New Media that Penghua Qianhai Vanke REITs is an important attempt of the company. If conditions permit, it will adopt more financialization methods similar to Penghua Qianhai Vanke REITs.

Tan Huajie did not give a direct response to the question of how Penghua Qianhai Vanke REITs realized 8% revenue.

Public offering REITs development window?

From the experience of foreign development, REITs are defined by overseas investors as the fourth category of assets other than stocks, bonds and currencies. Relevant data show that from 1995 to 20 1 1, the FTSE American equity REITs index rose by 574%, the MSCI American REITs index rose by 553%, and the S&P 500 total income index only rose by 387% in the same period.

In contrast, China has been exploring REITs for a long time, but due to the imperfect legal construction, listing and withdrawal mechanism, REITs have not been fully implemented so far.

As early as 20 14, CITIC Securities developed two private REITs products such as "CITIC Sailing", but the market attention was not high. At that time, the market analysis believed that this was mainly due to the relationship between private equity funds, with a small scope of raising and poor liquidity, which failed to reflect the market value of REITs well.

With the registration and establishment of Penghua Qianhai Vanke REITs, the issue of public offering REITs has once again attracted attention. GF Securities previously proposed that the joint fund company of housing enterprises should set up REITs, which will be used for the development and cultivation of commercial real estate after raising funds in the open market, to obtain rental income, and then distribute the rental income to investors in the form of dividends. As a financing channel, REITS optimize the capital structure of housing enterprises and ease the financial pressure.

So, are the conditions for the issuance of public offering REITs mature? The answer is obviously no.

Take the pioneering Penghua Vanke REITs as an example. Du Xiang, a financial analyst and partner of Bates Consulting Center, pointed out to Viewpoint Real Estate New Media that the fund has set a duration of eight years, which is not a real REITs product in a strict sense, but more like a bond product.

"REITs products listed in the United States are unlikely to tell you how long the term is." Du believes that if a deadline is set for Penghua Vanke REITs, only the products in the public offering field are different from those in the private offering field, and there is no difference in others.

It is worth mentioning that Tan Huajie, the director of Vanke, also said in an interview with Viewpoint Real Estate New Media that China's REITs are still in the early stage of development, and Penghua Vanke REITs have made great breakthroughs, "one step closer to the real REITs".

In fact, Du pointed out that compared with American REITs, which are not taxed at the enterprise level, domestic REITs still have tax problems, and the policies in this regard have not been perfected for a long time. In addition, the regulatory authority of REITs has been confusing, and it is still uncertain whether it is supervised by CBRC or CSRC.

He Ling, senior manager of Savills Market Research Department, believes that the mature experience of foreign REITs is to bundle some high-quality property assets together and then give them back to investors through dividends. "The current problem in China is that it is not easy to find such a batch of high-quality real estate for bundled sales."

He Ling continued to point out that in recent years, commercial real estate properties such as office buildings in China have developed rapidly and are already at a high level from the perspective of transportation; Judging from the rate of return, the rate of return of these properties is not particularly high, which also hinders the landing of REITs to some extent.

Judging from the current real estate situation and legal construction environment, perhaps China is not ready to promote REITs. It is too early to implement REITs on a large scale, but Penghua Vanke's trial of REITs has played a positive role in asking for directions.

"As long as there are more and more high-quality properties to invest in China, the development of REITs will definitely get better and better." He Ling believes that the launch of mortgage-backed security will greatly promote the development of REITs in China.