Research On Operational Risk Management Of Public Rental Housing REITs A Case Study Of AnJu Group

In recent years,the state has frequently issued policies to regulate housing prices,cooling the overheated development of the real estate market in China.Public rental housing,as a kind of housing that emphasizes the residential property of real estate,is one of the important parts of the housing security system in China.Public rental housing is a kind of welfare housing provided for college graduates without housing,introduced talents and other groups with housing difficulties.With the development of urban scale and the increase of population base,the demand for public rental housing in large and medium-sized cities is also increasing.In the process of public rental housing construction,it is often faced with a series of financing problems due to high project cost,long investment return period and other factors.Real estate investment trust fund is a kind of trust fund that collects the funds of specific majority investors by issuing income certificate,carries out real estate investment management by special investment institutions,and distributes the investment comprehensive income to investors in proportion.Its advantage lies in that it can transform the illiquid real estate into financial securities assets with good liquidity,and can Absorb a considerable amount of scattered private capital,participate in real estate project investment,solve the problem of capital shortage and capital flow.The good development of REITs in China’s real estate industry provides a new way to solve the financing problem of public rental housing.On December 14,2018,the first phase of the special plan for talent rental housing asset support of Shenzhen Venture Capital Anju group was successfully listed on the Shenzhen Stock Exchange.It is the first REITs product with public rental housing as the underlying asset in China,providing a demonstration for the application of REITs in the domestic public rental housing field.Due to the immature development of REITs in China,there are some risks in this product.This paper uses case analysis method to sort out the operation mode of the first phase asset support special plan for talent rental housing of Shenzhen Venture Capital Anju group,analyze the operation risks in the case,analyze the risk prevention and control measures adopted in the case,and reveal the risk management effect of Anju group.Through the research,it is found that the risk prevention and control measures adopted by the REITs of Anju group have a good overall effect on project risk prevention and control,and can effectively avoid the risk of moral hazard and possible decline of credit rating.However,similar to the REITs products on the domestic market,they can not effectively avoid joint and several liability risk.At the same time,although the low return rate of REITs reduces the financing cost,it also highlights the problem that the low return is difficult to cover the required interest payment.If we want REITs to be further used in the field of public rental housing,we need to focus on solving joint and several liability risks and debt repayment risks.In view of these problems,this paper also puts forward corresponding suggestions,through further standardizing the risk isolation structure of REITs,introducing the third-party property management institutions,increasing financial subsidies and supplementary policy support policies to provide a better development environment for public rental REITs,hoping to provide a reference for other public rental projects that want to raise funds through REITs.