A Study Of The Mezzanine Financing In The Real Estate Business

Since the reform and opening up, China’s real market has achieved rapid development, the real estate industry has become an important pillar of China’s economic development. As a typical capital-intensive industries, real estate corporate finance environment plays an important role in promoting industrial development. Current financing model of real estate enterprises in China are mainly underwritten by its own funds, loans, construction units, such as mortgages constituted, however, there are serious than the problem of dependence on bank loans. With the continuous deepening of the national macro-control policies, the policy supervision of the bank, trust, continue to increase, especially in the real estate business loans becomes even more difficult, most of the real estate enterprises gradually fall into poor financing, financial tensions. In this context, mezzanine financing as a new, more efficient modes of financing to start real estate companies accepted, effectively broaden the financing channels of the real estate business. In view of this, from the definition of mezzanine financing, risks and rewards, features, advantages and disadvantages of the role of the real estate financing, the necessity of in-depth analysis of the real estate business financing situation and mezzanine financing, and based on the use of real estate enterprises in China the status of mezzanine financing, combined with specific mezzanine financing case, delves into the problems of the real estate companies use mezzanine financing, and real estate enterprises to further improve the the mezzanine financing model made a number of suggestions to further establish and improve China’s real estate financial system actively promoting China’s real estate industry continued stable and healthy development to make some contribution.