Learn From The Successful Experience At Home And Abroad To Explore JKC Real Estate Financial Strategy

As a capital-intensive industry, real estate has its own industrial chain, including the first stage land consolidation, procurement of land through bidding and auction, real estate development and sale or holding property. Every segment needs great funding supports. With the tightening of bank credit and other traditional financing channels, the examination and approval of real estate development loans also tends to be more strict. The requirements of examination and approval of loan are also concentrated in the city center areas with good price defensive. Actually, the IPO gate for real estate enterprises in the capital market has been closed, also the approval threshold for refinance through the open market has been temporarily stopped. To broaden the financing channels, the financing source of real estate industry increasingly expands to the real estate fund and trusts, especially the real estate fund. The trusts have become a new financing channel for real estate, under the window guidance of the regulatory authority one after another. The large real estate development enterprises are set up by the main sponsor of real estate funds and raised funds, such as China overseas, China resources land and Gemdale, etc., which have been testing the waters of private equity investment funds for the real estate. Under the background of brewing and developing REITs, the management wisdom of the commercial real estate will be more fully supported with the financial capital to develop. However, the development of the private equity real estate fund will also be an important basisfor the growing of public offering REITs market.The fast growing Capitaland, the parent company of Capitaland, is a typical representative of "private+public fund" in recent years under the Asian REITs mode. Capitaland itself is a Singapore listed property company, including17private equity real estate fund in addition to5listed REITs. With the help of a private funds channel, it has developed new projects or purchased projects which needed to be improved, and sold them to the listed REITs again after they were mature to realize the exiting of the private funds.The funds created by domestic agencies led by Star Capital and Wins Investment launched the "real estate development+fund management" mode. Star Capital has now completed the investment of2billion yuan in Dalian Donggang new city, two investment projects in Chengdu for more than100million yuan and the project in Shanghai Zhabei. All the projects are the urban complexes of XingGang Yao. The mode promoted the reasonable specialization of the original integrated financing investment of real estate industry, development management and asset management. It also deepened the specialization of professions to effectively enhance the industry efficiency and the allocation efficiency of socialresources.Facing the variable China’s real estate policy and experienced several market fluctuations, JKC gradually realized the importance of stable and diversified financing channels and put forward the strategic thinking of:strengthening the awareness of resource integration, promoting the ability of assets operation, implementing financial innovations for the real estate, and creating urban area value.And they realized that the real estate financial innovation will grow up and occupy high-end of the industrial chain to implement the resource allocation in a higher level and have a revolutionary influence on the whole industry ecology. Therefore on he basis of ensuring the safety of capital chain and actively promoting original capital source channel, the capital financing platform KSD was set up in2011. And in2012, they set up "Jia Rong advantage development fund" cooperated with Zhong Rong International Trust Co.,Ltd. And successfully launched the first fund of800million to take the first step to the success of the diversified investment and financing business for JKC.On the view from the stand real estate enterprises, this article analyzed the status and characteristics of China’s real estate financial market from the aspects of thefeasibility ofthe theoretical research and practical operation, and the internal and external causes of influencing the development of China’s real estate financial market. And this article mainly discussed the possible real estate financial products in the next few years and its development prospect by referencing the development experience of real estate finance at home and abroad and combining with the understanding of relevant policies of government and financial regulators, so as to explore the future real estate finance ways for JKC and provide actual effective operational suggestions and ideas for the promoting financial innovations of JKC.