The Lever Effect Of Real Estate Enterprises In Setting Up Real Estate Private Equity Funds

Since2010, the government introduced a series of real estate control policies, and the tightening of bank credit policies under severe pressure in the real estate control policies have been put to use in advance of special housing fund and a series of combination punches policy to rely on traditional bank credit financing of real estate financing model has brought unprecedented challenges. Huge financial pressure traditional real estate corporate finance models, which continue to create a wide range of financing models to real estate investment funds led the way into being a new type of real estate financing, in particular the introduction of2006"Partnership Enterprise Law", so to limited partnership in the form of real estate private equity funds showed the trend of rapid development, at least one third of the domestic market housing prices have been set up real estate funds, compared to other financing, real estate funds are one of the highest cost of capital financing, but because its financing channels flexible and less regulation, real estate companies be more favored, another real estate fund is to make sense of financial leverage to maximize their advantage, opening up business can no longer be "four card" and is limited by its own funds, real estate funds can advance into more open business, making developers more with less money leveraging investment projects, the benefits expected from the assets, leverage the advantages to the maximum extent. As more and more close to the real estate industry to rationalize the market, large-scale use of real estate funds, while revenue gain leverage the real estate industry also needs to focus on the financial leverage to amplify the effect of financial risk. The purpose of this paper is the analysis of foreign real estate company Tishman Speyer and CapitaLand fund business model, through the analysis of their use of leverage investment analyzes the reasons for its failure or success, combined with the Chinese yuan real estate fund, in particular by the Open provided for the establishment of the status quo leading real estate fund, the establishment of financial risk were real estate funds raised preventive measures for the real estate business.