China News Service, August 31, title: China's affordable rental housing public offering REITs officially set sail
China-Singapore Finance reporter Ruan Yulin
Cushman & Wakefield, an international real estate service and consulting company, assisted the "China Beijing Affordable Housing Center Rental Housing Closed Infrastructure Securities Investment Fund" and the "Red Earth Innovation Shenzhen Talent Housing Affordable Rental Housing Closed Infrastructure Securities Investment Fund" to be listed on the Shanghai Stock Exchange, Shenzhen Stock Exchange successfully issued.
On the same day, CICC Xiamen affordable rental housing public offering REITs was listed on the Shanghai Stock Exchange, marking the official launch of China's affordable rental housing public offering REITs.
China's affordable rental housing public offering REITs officially set sail
In terms of asset nature, Shenzhen Talent Housing, Beijing Affordable Housing Center and Xiamen Anju REITs are all rental housing with affordable properties.
From the perspective of security groups, Shenzhen Talent Housing and Xiamen Housing REITs are mainly aimed at new citizens and young people.
Beijing Affordable Housing Center REITs are mainly aimed at urban low-income people with housing difficulties.
From the perspective of assets, the underlying assets of Shenzhen Talent Housing REIT are equipped with commercial and underground garages in addition to affordable rental housing.
In terms of the nature of the land, all assets are land for sale.
At the asset level, Shenzhen Talent Housing REIT has 4 assets in the pool, with a total of 1,830 rental housing units and a total rental housing construction area of 134,700 square meters. A single asset can provide about 200-600 housing units, belonging to small and medium-sized rental communities.
Beijing Affordable Housing Center REIT has 2 assets in the pool, with a total of 2,168 rental housing units. The total rental housing construction area is 112,800 square meters. Each asset can provide about 1,000 units of supply, belonging to a medium-sized rental community.
Xiamen Anju REIT has 2 assets in the pool, with a total of 4,665 rental housing units and a total rental housing construction area of 198,500 square meters. Each asset is a medium-to-large rental community that can provide more than 2,000 units.
In terms of actual operation, the rental standards of the first batch of leasehold REITs have a large discount compared to the surrounding market levels, which further highlights the security attributes of the assets.
In terms of asset operation time and occupancy rate, the assets of Shenzhen Talent Anju and Xiamen Anju REITs are newly built projects, and the operation time is mostly within three years. The Beijing Affordable Housing Center REIT assets are completed projects with a longer operation time. From the operation results, At present, the occupancy rate of all assets has reached a high level, and the operation is stable.
Broaden ideas for the subsequent issuance of leased rental REITs
In general, the security attributes of the assets entering the pool are clear and the security scope is wide, which not only covers the fundamentals of my country's rental housing security system, but also includes the supporting commercial and underground parking spaces of the subsidized rental housing, which enriches the format of the subsidized rental REITs assets. .
In terms of asset details, the first batch of subsidized rental REITs assets include large, medium and small rental communities of different scales, as well as hardcover and general furnished houses with different security standards, including rental properties with different positioning and mature operation, which are for the follow-up insurance. The issuance of rental REITs broadens the mind.
Hu Feng, deputy general manager of Cushman & Wakefield's Beijing branch and head of the North District Valuation and Consultancy Service Department, said that the first batch of affordable rental housing REITs opened a new door for my country's affordable rental housing infrastructure assets to realize "investment, financing, management, and management." The sustainable development of “retirement” and reinvestment has a milestone significance in the practice of effectively revitalizing the stock rental housing assets and broadening the financing channels for affordable rental housing.
Promote the continuous expansion of affordable rental housing REITs
The REITs research group of Guanghua School of Management, Peking University pointed out that the launch of affordable rental housing REITs is not only a linear continuation of China's public offering REITs pilot, but also stands at the intersection of three major structural issues and directly responds to promoting the realization of common prosperity, It is a major reform measure for the transformation of the real estate industry to a new development model and further exerting the functions of the capital market.
The research group pointed out that the good social and economic effects of affordable rental housing REITs have initially appeared.
In order to more effectively promote the continuous expansion of affordable rental housing REITs and help accelerate the development of China's affordable rental housing industry, it is recommended to further encourage multiple entities and multiple types of assets to participate in the issuance of affordable rental housing REITs products.
Formulate a reasonable and stable subsidy policy and rent adjustment mechanism, build a business logic that conforms to the security attribute, and form a long-term mechanism for the development of affordable rental housing.
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