The Organizational Structure Models Of Real Estate Securitization

As one form of real estate securitization, REITs has entered a peak period of development in recent years. Compared to the United States and other developed countries, our REITs can not be considered as a real REITs, it can only be called Quasi-REITs. The REITs in China takes the development model of circumvent the law. As an important mean of financial innovation, REITs has huge development prospects, and it's also necessary to seek a breakthrough in China's financial markets, but which kind of organizational model can maximize the enthusiasm of fund managers and investors and adapts to the status of China? The current practical problem we are facing is how to start the REITs.As a relatively independent industrial organization, REITs' different models of organization and internal management structures will bring about significant differences in efficiency. Throughout the global development of REITs, the basic organizational structure can be divided into contract REITs, corporate REITs and limited partnership REITs. From the perspective of institutional economics, this article explores the three models of organization, and tries to find the best model for China.Chapter I generally analyses about the real estate securitization. Some related concepts are introduced. I analyses the cost, revenue and risk of Real Estate Securitization. Compared with other financing methods, real estate securitization has many advantages such as lower-cost financing, true sale, bankruptcy-remote, high level of credit, risk diversification and the protection of national rights.Chapter II introduces the theoretical basis of REITs from the aspects of Principal-Agent Theory,Contract Theory and Incentive and Restraint Mechanisms.In Chapter III there has been a specific analysis about the three models of REITs. I discuss the three different organizational models from the main conflict of interest, the right checks and balances, incentive and restrictive mechanism.In Chapter IV I discuss the two development models of REITs in United States and Hong Kong, and have a performance analysis to the relevant models of organization.In Chapter V I propose the models we can choose to develop REITs, which start with the contract REITs and gradually develope into the corporate REITs.