A Case Study On REITs Financing For Country Garden Long Rented Apartment

The 19 th national congress of the communist party of China forward adhere to the "room for not fry,hire purchase and",in 2015,the ministry is in "about to speed up the cultivation and guidance for the development of housing rental market," clearly put forward in "actively promote real estate investment trusts(REITs)pilot" this effort,in April 2018,the ministry and the securities in the "about promoting the housing lease asset securitization related work notice again in the" key support housing leasing enterprises issued by the rights and interests of the real estate property as the underlying assets class asset securitization products,actively promote multi-type asset securitization products in the nature of creditor's rights,Pilot issuance of real estate investment trust(REITs)".Under the background of financing demand and national policy support,the long rent apartment industry in China has been greatly developed.However,in the development process of long-rented apartments,there are problems such as large capital investment in the early stage and slow capital recovery in the middle stage,especially the difficulty in obtaining financing channels and the lack of a reasonable exit mechanism,which hinder the development of long-rented apartments to some extent.In recent years,some enterprises have started to try to use the method of real estate investment trust fund for financing,such as xinpai apartment REITs,poly real estate rental housing REITs and other projects.Due to domestic rental housing REITs in the early exploration stage,there is still the financing risk,this article selects rent the apartment REITs issued by country garden as the research object,analyze the distribution plan,and study its release agent and risk,combined with effective risk control measures,the blue director rent apartment REITs follow-on issuance and domestic rental housing RIETs development is of great significance.Since China's REITs started late and are still in the exploration stage,and the policy supports the development of the rental housing market,it is of great theoretical and practical significance to apply REITs to the rental housing market as a research direction.This paper,by means of case analysis and comparative analysis,starts from the distribution status and operation mode,first analyzes the release background of REITs of country garden long-rented apartment,and then introduces its release plan in detail.Then analyze its action;Then it analyzes the risks of country garden long-rented apartment REITs according to its scheme design: transaction structure risks,risks related to the underlying assets,REITs management risks,credit rating risks and external risks.Furthermore,it points out that country garden's risk countermeasures mainly include reasonable transaction structure design,optimal construction and operation management of long-rented apartments,cash liquidity guarantee,regular report of property assets,employment of professional intermediaries,complete credit enhancement measures,and tax planning.Finally,combined with the previous analysis,the corresponding case enlightenment is obtained from five aspects.