Study Ofthe Investment And Financing Of Logistics Real Estate In China

Because of the current booming China e-commerce and online consumer market Logistics real estate has become the emerging hot spot of current China industrial real estate investment activity. Logistics real estate project investment has the same economic nature as that of the residential and commercial real estate projects.logistics real estate investors set investing goals on stable cash flow and future resale profit of logistics real estate projects. Object of logistics real estate investmentincluding logistics real estate assets and logistics real estate equity. Investorsto participate directly in the process of project development of logistics park construction or purchase of logistics park and were involved in themanagement work, including the acquisition of mature assets or purchase logistics land before the start of the project investment,development, constructionand property after the completion of the investmentin two forms.Enterprises adapt external debt financing, need to consider and determine what kind offinancing ratio can be safe while ensure the financing enterprise’s profit rate can increase greatly, because when the financing cost of corporate debt rate once exceed the pre tax return rate of the project, such high proportion of financing will lead theenterprise have to face the loss of solvency and equity earnings decline and financial risk rise. On the basis of this, a careful analysis of the market situation of financing of the project itself and the market macro environment of logistics real estate.Theinvestment and development company must determine what financing structure the enterprise can bear in the face of financial risk to ensure the optimization of enterprise capital structure and the maximization of shareholder wealth.