Application Of TOT Model In Land Development Back Section

In recent years, the default risk for the debt burdened by local government increases because of the economy downturn.For the company this weakens the recovery of the creditor’s rights from the government caused by the land development.TOT mode can solve the problem by conversing the company’s receivables into operational assets and recovering investment through participation in social function.Through exploratory analysis, this paper take Bengbu Railway Real Estate Group project as the case to study the mode of "Investment-Operating assets-Recovery of funds" from the viewpoint of land developer. In this case, the time value of funds is the core and the goal is performing and operating assets to increase the value.The result shows:Following the policy of the government, TOT model is applicable and expandable in the field of public service, and could be a workable method to decreasing the debt risk for government and recovering funds for companies. The land developers change the mode of "Investment-Recovery" to "Investment-Operation-Recovery" by TOT mode, and take part in more business at the society responsibility and field. This is also the trend encouraged by the government and the future for the society. The case study is practical and provides not only the method for the company to recover the investment, but also the exploratory idea for the social capital enter into and withdraw from more fields.