A Case Study On Asset Securitization Of Long-rental Apartment Of Yango Group

Housing price is one of the important factors of the attractions of modern cities.Based on the current status of high housing price in one-tire and second-tier cities,the Chinese government introduced a variety of regulatory policy,including the policy of rental with rights.In the 2019 Working Conference of the CPC Central Committee,the government stressed the importance of accelerating the establishment of a new round of housing supply-side reform featuring multi-agent supply,multi-channel support,and both rental and purchase,a move that greatly promoted the development of the rental market.However,the early infrastructure investment of housing rental industry is pretty large,the capital recovery period is relatively long.Moreover,Central and local governments are tightening their grip on the property sector.All of those combined factors caused the financing cost of projects related to real estate company rise.In order to relieve the capital pressure of real estate enterprises,new financing methods such as REITs have been continuously innovated and developed,which have become a booster of the asset securitization business of long-rental apartments of domestic real estate companies.This article takes the first A-share private listed real estate company's long-rental apartment storage-type equity REITs — CITIC Securities-Yango long-rental apartment Asset Support Special Plan as a case study object.Based on the specific situation of China,the paper studies the problem of long-rental apartment in Chinese market.This paper maily contains three parts.Firstly,it introduces the industry background and potential trend of REITs of long-rental apartment in China.Secondly,in the case study part,the paper analysize the asset securitization of Yango systematically,with an emphasis on the analysis of the motivation of REITs,the transaction structure design,the pricing and financing risk analysis of REITs and the financing effect evaluation.Lastly,on the basis of case introduction and case analysis,this paper affirmes the highlights and guards some potential risks of REITs of long-rental apartment industry and offer relative countermeasures and suggestions.The following conclusions are drawn through in-depth analysis.The development of REITs should serve the rights of enterprise strategy.It is necessary to combine with the actual domestic situation and draw lessons from the mature foreign REITs experience,and pay attention to the transaction structure design.It is necessary to solve the problem of narrowing financing channels and high financing cost of enterprises.This research is of great referential significance to the asset securitization of long lease apartment enterprises.