How many feasible financing methods are there in the early stage of commercial real estate?

Real estate development is a capital, technology and management-intensive investment behavior. The amount of funds occupied by developing a real estate project is very huge. Without the help of various financing means, developers will be unable to move. At the same time, as the first link of the industrial chain, financing channel has always been the bottleneck of real estate development, which needs the financial industry and perfect capital market as the backing. However, different projects, different links or different real estate companies in real estate development have different risks and financing needs, so it is necessary to analyze the financing channels of real estate and determine the optimal financing structure:

1. own funds:

Developers use their own capital or expand their own capital base through various channels. Such as loans from subsidiaries, to support project development. The funds raised through this channel can be held by developers for a long time, controlled by themselves and used flexibly; The necessary self-owned funds are also a hard "threshold" set by the state for developers. 12 1 stipulates that the proportion of self-owned funds must exceed 30%. There are many real estate enterprises in China, but few have the scale and strength. With the increasing investment scale, the demand for self-owned funds will increase, and many small and medium-sized real estate developers with insufficient strength will be excluded. ：

2. Advance payment

Advance payment is usually welcomed by buyers and sellers, because for developers, sales return is the best financing method with the lowest risk. The funds withdrawn in advance can be used for engineering construction, alleviating the pressure on its own funds and transferring some market risks to buyers. For the buyer, because a small amount of money can get a larger expected value-added income, as long as they are optimistic about the prospects of the property, they will show great enthusiasm for the pre-sale. 12 1 stipulates that only when the structure of commercial housing is capped can individual mortgage loans be obtained from commercial banks. At present, most domestic buyers buy houses by loans. Without the support of housing loans, it is difficult for real estate developers to sell houses in advance and obtain advance payment. Real estate projects need about 1 year on average from the start of construction, obtaining "five certificates" to "structural capping", which is the time when funds are most scarce. Insufficient advance payment will make the pressure on self-owned funds even greater, and the project development will be unsustainable.

3. The construction unit mat endowment

One is that the builder provides some engineering materials; One is to postpone the payment of the project. According to the statistics of the Ministry of Construction, the arrears of real estate development and construction funds account for about 10% of the total real estate development funds in the whole year, and the funds it solves are limited, which only relieves and cannot solve the fundamental problems. Document 12 1 strictly restricts the use of working capital loans by construction enterprises, and prohibits construction enterprises from using bank loans to finance real estate development projects. Since 2004, the state has made great efforts to pay off the wages owed to migrant workers, which has led to a great effort to pay off the project funds, making the funds raised by the construction unit for development and commercial use more limited.

4. Bank loans:

The development of real estate projects is highly dependent on bank loans, which has always been the main financing method for real estate development enterprises. According to conservative estimates, more than 50% of the real estate development funds come from bank loans, and at least 70% of them should be included in the advance payment and deferred payment of suppliers' materials by construction enterprises. In recent years, a series of macro-control policies of real estate issued by the state are mainly aimed at bank credit: the sudden tightening of capital chain of real estate enterprises is mainly due to the tight monetary policy. The reason why banks are willing to lend money is because they have repeatedly considered the brand, project progress and future income of real estate companies, and finally gave loans to a limited extent. Under the current situation, bank credit is still the first choice for real estate enterprises in China. Convenient, low actual economic cost and large financial leverage. The disadvantages of heavy debt repayment pressure can be avoided by adjusting the debt structure of long-term liabilities and short-term liabilities. However, due to the substantial increase in the threshold of bank loans and the bottleneck of funds, developers urgently need to open up new financing channels.

5. Real estate trust:

At present, there are two main modes of trust products: one is that trust and investment companies directly invest in real estate projects, and the other is debt financing. Compared with bank loans, real estate trust plan financing has the advantages of reducing the overall financing cost of real estate development enterprises, raising funds flexibly and conveniently, and adjusting the interest rate of funds flexibly. Due to the particularity, flexibility and unique function of property isolation and right reconstruction of trust system, financial innovation can be carried out by means of property rights, income rights and preemptive rights, and then fully combined with bank loans to form a new combined financing model, namely trust+bank.

6. Listing financing:

Listing financing includes domestic listing financing and overseas listing financing. Real estate enterprises can quickly raise huge funds through listing, and the raised funds can be used as registered capital permanently, and there is no fixed repayment period, so it has great advantages for some large-scale development projects, especially commercial real estate development. The development of commercial real estate needs a large capital scale and a long investment cycle, which can provide a stable capital flow and ensure the capital demand during the development period. From the perspective of enterprise scale, due to the relatively high threshold for listing, most large real estate enterprises with large scale and good reputation can use their financing, and some medium-sized enterprises with development potential and eager to expand their scale and financial strength can also consider buying (borrowing): listing on the shell for financing, so as to meet the requirements of additional issuance and rights issue and realize the purpose of financing from the securities market.

7. Real estate asset securitization

Real estate securitization is a financial transaction process in which illiquid non-securities real estate investment is directly transformed into securities assets in the capital market, and the relationship between investors and investment objects is transformed from direct property ownership to securities owned by creditor's rights. The advantage of asset securitization is that after absorbing investment funds, developers can obtain funds quickly, establish a good capital investment mechanism and start the project smoothly, although they have to give up part of their profits. It is also conducive to the realization of real estate investment and consumption, and relying on securities as the transfer carrier of real estate property rights can attract more funds into this field; At the same time, the change of fund price includes investors' judgment on the profitability of fund investment and market expectation, which is helpful to gather real estate purchasing power and market price discovery. Measures for the Pilot Management of Credit Asset Securitization of Financial Institutions June 5438+February 1 day, 2005: The formal implementation provided policy and legal basis for mortgage securitization. The Administrative Measures clearly stipulates the qualifications of the sponsoring institutions, capital requirements, securitization business rules, risk management, supervision and management, and legal responsibilities of credit asset securitization, which provides a strong guarantee for the standardization of real estate securitization.

8. Joint development:

Joint development is a financing method for real estate developers and operators to develop real estate projects in a cooperative way. This way can effectively reduce the investment risk and realize the sustainable development of commercial real estate development and commercial network construction. Real estate developers and operators realize alliance cooperation and overall coordination, so that both sides can obtain stable cash flow and effectively control business risks. At present, the conditions for developers to obtain loans are clearly stipulated, that is, the self-owned funds of fixed assets investment projects for real estate development must be: 35% or more. Therefore, for medium-sized development enterprises, in the case that it is difficult to obtain bank loans, choosing joint development can obtain financing guarantee and avoid the break of capital chain. Most commercial real estate developers are transferred from residential development, and there are deviations in grasping commercial characteristics and commercial laws. Applying the mode of residential development, developers, investors, operators and property managers cannot be organically combined, which will bring huge investment risks. Joint development can realize the integration and repositioning of all development links, and the strong alliance between real estate developers and operators can produce business advantages through brand combination. The brand effect of developers and operators can effectively improve the rental and sale of commercial real estate, so that it can be guaranteed in attracting passengers and creating a commercial atmosphere.

9. Discounted loans of developers:

The discount on entrusted loans by developers refers to a kind of "seller's credit". Real estate developers provide funds to entrust commercial banks to issue entrusted loans to buyers of their commercial houses, and developers subsidize interest for a certain period of time. For commercial banks, entrusted loan business can not only avoid policy risks and credit risks, but also obtain considerable intermediary business income such as handling fees. For real estate developers, entrusted loan business is conducive to solving the problem of capital withdrawal in the sales stage and realizing early sales. The returned funds can be classified as self-owned funds as sales profits or directly invested in project construction, which can better solve the problem of insufficient self-owned funds of 35% developers and make it easier for them to obtain development loans from commercial banks. At the same time, the discounts offered by merchants provide a very attractive marketing theme. Buyers feel more secure and stimulate the sales of real estate. Developers can also mortgage future fixed and recoverable mortgage loans to banks according to the situation, so as to obtain a certain proportion of real loans and solve temporary capital needs. This kind of financing is realized in the sales process, which is safe and reliable, but not all developers can try. Because a considerable part of the basic funds will be invested and recovered in stages in a long time, it is only suitable for large real estate enterprises with strength and scale, and the projects developed are high-profit and high-grade boutique communities.

10. After-sale repurchase and leaseback:

After-sale repurchase means that developers sell or pawn their developed properties to lending institutions in order to get a lot of cash for reinvestment; At the same time, the property will be redeemed in the form of similar installment repayment in the future. The lending institutions mentioned here can be banks, investment companies, finance companies, trust companies and other financial institutions, and can also be well-funded industrial companies. After-sale repurchase not only allows developers to obtain a high proportion of financing for the sustainable development of other projects, but also bypasses the national policy ban that ordinary companies are not allowed to borrow funds from each other, and can also obtain property rights after redeeming the property. This financing method is especially suitable for developers who have a lot of stock properties that are difficult to sell for a long time, and it plays an extremely important role in revitalizing assets and starting reinvestment. However, in the process of after-sale repurchase, there will be two transaction taxes and fees, and a large sales spread will be paid to the lending institution for loan interest, so the capital cost is high, and the economic feasibility should be carefully analyzed before operation. After-sale lease refers to selling the property developed by the developer, and then renting it back for self-operation or entrusting others to operate. In the process of sale and leaseback, the developer who owns the property can make profits twice: first, he transfers the ownership of the property, so that the development funds can be realized immediately, reducing the occupation of funds and obtaining sales profits; At the same time, the right to use the property is reserved, so as to obtain long-term operating income in the future lease. The key to the whole operation lies in whether the later operation can fulfill the promised return on investment, that is, whether the operation can reach the profit level planned in the early stage. Therefore, before the sale, there must be an objective, detailed and feasible business plan and a trusted operating agency, otherwise it will be suspected of sales fraud. This method is especially suitable for real estate enterprises that develop products to finance commercial buildings such as hotels and shopping malls.

1 1. Overseas financing:

The entry of overseas real estate funds is beneficial to the development of China's real estate industry. On the one hand, it can alleviate the excessive dependence of the domestic real estate industry on bank credit and contribute to the sustainable development of the real estate market; On the other hand, the diversification of financing methods can also play a role in dispersing the risks of the financial system. However, since China has not yet promulgated laws and regulations on real estate investment funds, there are still many risks for overseas real estate funds to invest in China. Foreign real estate investment funds have high requirements for the development project itself, and they are required to be standardized and transparent in the operation process after they are put into the project. However, some domestic real estate enterprises are not standardized, and there are still some obstacles in the development of overseas real estate funds in China.

12. finance lease:

According to the Contract Law, a real estate financing lease contract means that the lessee chooses a house by himself or through the lessor, and then the lessor buys the house from the real estate seller and gives it to the lessee for use, and the lessee pays the rent. The lessor earns income by collecting rent. When the deposit interest rate drops, the lessor is more willing to get a higher return than interest through this risk-free way. Compared with bank loans, real estate financial leasing has simpler and faster advantages. Although the rent for leasing is relatively high, the application process is simpler and faster than bank loans. In addition, the lease terms can be arranged according to the lessee's cash flow demand, and the repayment method is more flexible. These characteristics are more conducive to the healthy and sustainable development of real estate enterprises.

13. Unlisted capital increase and share expansion: private equity financing:

Influenced by the global stock market crash and economic recession caused by the subprime mortgage in the United States, Evergrande Real Estate was forced to abandon its global public offering (IPO) in Hong Kong on March 20th, 2008, without institutional subscription, showing the complete chill of the international capital market. Under this circumstance, Evergrande Real Estate chose unlisted capital increase and share expansion. Among them, Zheng Yutong, chairman of Hong Kong New World Development Co., Ltd., contributed US$ 65.438+0.5 billion, accounting for 3.9% of the company's shares; A State Investment Bureau in the Middle East contributed US$ 65.438+0.46 billion, accounting for 3.8% of the company's shares; Five other institutions, including Deutsche Bank and Merrill Lynch, contributed 2 1 10,000 USD.

14. mezzanine financing:

Mezzanine financing is a trust product between equity and creditor's rights. In the field of real estate, mezzanine financing has the advantages of high flexibility and low threshold for the combination of different creditor's rights and equity. In recent years, the mortgage channels in Europe and America have narrowed, and the financing of real estate developers is: 15%: to: 0%: supplemented by mezzanine financing. For real estate developers, it can be adjusted according to the special requirements of raising funds. After the equity enters, they can also apply for loans from banks. Moderate requirements for capital withdrawal; The requirements for the project are low, and there is no need for "four certificates". Investors have lower requirements for control rights. For the provider of mezzanine financing, the repayment method is flexible and the investment risk is smaller than the equity; Exit is more certain and more liquid than traditional private equity investment.

15. Bond financing:

Because real estate projects have the characteristics of large amount of funds, high risk and poor liquidity, and the operating mechanism of China's corporate bond market is not perfect, corporate bonds can not be repaid on time, so the state has been strictly controlling the issuance of real estate bonds. In order to standardize the bond market, the regulatory authorities have adopted strict bond approval procedures, especially measures to strictly control the bond approval of real estate projects. Such constraints make the financing threshold of real estate bonds in China higher, difficult to enter and the issuance cost higher, which is an unattainable financing method for some private enterprises.

16. Project financing:

The so-called project financing refers to the financing with the assets and income of the project as collateral. This method has the characteristics of large one-time financing amount, long project construction period and payback period, and risk sharing. Therefore, for large-scale commercial real estate projects, project financing can be considered to achieve financing objectives and risk shielding.