A Research On The REITs Financing Model Of Group Innovation Spaces

Since the slogan of "public entrepreneurship and mass innovation" proposed,as a service innovation carrier,Group Innovation Space(GIS)has got unprecedented development.The rapid development of GIS effectively promotes the adjustment of economic structure and the transformation of the mode of economic growth,but the profit pattern of "middleman landlord" has seriously restricted the financing behavior of GIS,limiting the healthy development of it,thus it is imperative to find effective financing instruments and financing mode for GIS.This paper is based on the perspective of financing of GIS,by literature reading,comparative study and empirical analysis method,it conducts a comprehensive and in-depth study on the financing predicament of GIS,and proposes an innovative financing channels,that is real estate investment trusts(REITs).Firstly,this paper defines the concept of "GIS".Referring to domestic and foreign scholars,this paper defines "GIS" as a kind of market office for innovative enterprises and individuals,which have the advantages of low office rental cost,and it can construct an effective business ecosystem.Secondly,due to the issue of GIS REITs depends on its market maturity,this paper focuses on the empirical study of GIS REITs based on market maturity.Because the office building is the essence of GIS,this paper researches on the market maturity of the office REITs,to judge the market maturity of the GIS REITs.In this paper,we select 17 domestic cities to establish a comprehensive index system to evaluate the potential of commercial value.The 17 cities are divided into three groups by cluster analysis.And we choose 8 representative cities as a sample to analyze the market maturity of office REITs.This paper establishes a comprehensive evaluation system for the maturity of office market,with the help of Logistic model in the basis of industry life cycle theory,to analyze the market maturity of office market of sample cities.Through this process,we obtain the market maturity of promoting office REITs.The empirical results show that the office market development of Beijing,Shanghai and Shenzhen is well,and they are in the mature period of industry cycle.So these cities have market conditions of issuing REITs.While,the development of office market in Hangzhou,Nanjing,Tianjin,Chengdu and Changsha is still in the expansion period.They don’t reach the market conditions of issuing REITs.In case that related supporting system and preferential policies of office market are not perfect,GIS,as segment of office has got policy support.So GIS REITs has the basis for the issue,which should be given priority to development in Beijing,Shanghai and Shenzhen.Finally,this paper measures the financing scale of GIS based on publicly available data,and demonstrates the feasibility of REITs financing from the perspective of profitability,market environment and other aspects.For the creation of GIS REITs financing model,the use of UPREITs management model is conducive to the creation of a large number of GIS into REITs shares,making the GIS owners become a "GIS provider".Through the profit model of obtaining all the rent,"GIS provider" enhances the level of rental unit area,thereby enhancing its financing capacity.Analysis of GIS REITs management mode,the choice of internal management pattern can give full play to the property management of GIS providers and asset management functions,then the REITs holder and management interests tend to be consistent,and the agency cost is significantly reduced.