What assets can real estate enterprises securitize?

What assets can real estate enterprises securitize? The relevant contents are as follows:

1. Commercial real estate

Commercial real estate includes shopping centers, office buildings and hotels. This kind of property usually has stable rental income and can be used as the basic assets of securitization products. The rental income of commercial properties is relatively stable, attracting the interest of many investors.

2. Real estate

Residential property refers to residential land such as apartments and villas. Renting or selling residential properties can be used to support securitization products. Securitization of such assets is usually realized by issuing mortgage-backed security (RMBS).

3. Commercial real estate

Commercial real estate refers to commercial land that can be developed in the future, including commercial centers and industrial parks. This kind of real estate is securitized before development, and commercial real estate backed securities (CMBS) are issued.

4. Land use right

Land use rights owned by real estate enterprises can also be securitized. Enterprises can split land use rights and issue corresponding securities products.

5. Real estate development projects

Incomplete or ongoing real estate development projects, including residential, commercial and industrial projects. Such projects can be securitized by issuing asset-backed securities (ABS). ABS usually takes the future cash flow as the support to securitize the project income.

6. Property lease contract

Property lease contracts of real estate enterprises, especially long-term stable rent contracts, can be used as the basic assets of securitization. This type of securitization is usually called leasehold usufructuary securitization.

7. Commercial loans

Commercial loans of real estate enterprises can also be securitized. This securitization product is usually called commercial loan-backed securities (CMBS).

It should be noted that real estate enterprises should abide by local laws and regulations when carrying out asset securitization to ensure that the selected basic assets have sufficient liquidity and stability to attract investors and ensure the safety and sustainability of securitization products. When choosing a securitization scheme, real estate enterprises usually comprehensively consider the project characteristics, market demand and financing demand in order to find the most suitable securitization method.