Study On Supermarket Commerical Real Estate Financing Way

Real estate investment trusts is a foundation funded by many investors and operated by managing professional firms to be one of the ways in investment on real estate programs. In China, as the real estate for commercial purposes started lately and is not supported by appropriate financing measures correspondingly. In addition, as the capital market in China is not yet well developed, there has been no real estate trusts existing. However, with the strengthened national macroscopic control and the growing needs for real estate marketing development, the necessity in developing real estate investment trusts has become more and more conspicuous.Firstly, this paper starts by presenting commercial supermarket real estate activities and their concerning features as introduction, and reviews the case study on real estate financing for two supermarket programs to highlight the constraints in financing operations. Furthermore, this paper analyses the pros and cons, the strengths and the weaknesses of the nine real estate financing models prevailing internationally to find out the financing requirements for the real estate investment trusts required by the commercial real estate programs. Next, this paper introduces the conception, rules of the game and features of current real estate investment trusts currently prevailing in the world as a basis on which the paper covers the topics of the development, advantages, problems of the real estate investment trusts in China and proposes recommendations to address the concerning issues. And as a conclusion, the paper reaches that the real estate investment trusts should start by means of contractual closure fund at the beginning combined with the commercial real estate (supermarkets and department stores) programs by singular leaseholders. Meanwhile, the commercial real estate developers should start and proceed in the current conditions as a starting point to gradually grow on a larger scale by improving the quality of the development and the quality of the companies themselves in order to respond the revolving context of the real estate investment trusts for the healthy growth of the developers on their own.