The pilot work of real estate private equity investment funds started——
Support the stable and healthy development of the real estate market
Our reporter Li Hualin
On February 20, the China Securities Regulatory Commission announced the launch of the pilot project of real estate private equity investment funds; on the same day, the Asset Management Association of China issued the "Real Estate Private Equity Investment Fund Pilot Filing Guidelines (Trial)".
Press the start button for the pilot work of real estate private equity investment funds.
People in the industry generally believe that the pilot project of real estate private equity investment funds is not only an exploration to support the transformation and development of the real estate market, but also an innovation to enrich private equity fund products. The market developed steadily and healthily.
Can invest in three types of real estate
"This pilot is an important measure for the China Securities Regulatory Commission to implement the decision-making and deployment of the Party Central Committee and the State Council on 'promoting a virtuous circle and healthy development of the real estate industry', improve the functions of the capital market, promote the revitalization of the real estate market, and support the private equity industry to play an important role in serving the real economy. .” The relevant person in charge of the China Securities Regulatory Commission said.
On November 28 last year, the China Securities Regulatory Commission announced five measures to adjust and optimize equity financing to support the stable and healthy development of the real estate market.
Among them, actively playing the role of private equity investment funds is one of the five measures.
In less than 3 months, the pilot real estate private equity investment fund was launched.
According to the relevant person in charge of the China Securities Regulatory Commission, due to the large differences in the investment scope, investment methods, and asset return characteristics of real estate private equity investment funds and traditional equity investment, the China Securities Regulatory Commission guides the fund industry association to establish a new "real estate investment fund" under the framework of private equity investment funds. Private equity investment funds" category, and adopt differentiated regulatory policies.
Specifically, in terms of investment scope, it clearly includes specific residential buildings, commercial buildings, infrastructure projects, etc.
"The previous infrastructure REITs mainly focused on mature and stable real estate assets, while real estate private equity investment funds cover assets at all stages of the life cycle. Investors can more easily participate in early real estate project investment and improve the capital market service. Life cycle real estate project capabilities.” Jiang Yucai, chairman of Shenzhen Venture Capital Real Estate Fund Management (Shenzhen) Co., Ltd., said.
In terms of managers, a relatively high threshold has been set, and private equity investment fund managers participating in the pilot work must have a stable equity structure, sound corporate governance, and paid-in capital that meets the requirements. The main investor and actual controller must not be real estate development companies or Its related parties have real estate investment management experience and real estate investment professionals, and have not committed major violations of laws and regulations in the last three years.
In terms of investors, it is stipulated that investors need to have higher risk identification capabilities and risk-taking capabilities. Investors in the pilot fund products should pay no less than 10 million yuan in the first round of paid-in capital, and they are mainly institutional investors.
"Overall, the pilot project was launched in a very timely manner, with a lot of bright spots in the work arrangement, optimized investment methods, precisely set the investment scope, emphasized institutional investors as the main focus, improved the flexibility of fund operations, clear rules, and decentralization. Combination." Ma Lin, managing director of Jiaxing Dingxin Zhiying Equity Investment Management Co., Ltd., said.
Improve product investment flexibility
Considering the large scale and long term of real estate private equity investment funds and the fact that the underlying investment projects of the fund usually require a large amount of capital supplement, the pilot program moderately relaxes the restrictions on the stock-to-debt ratio and expansion of funds.
According to the regulations, real estate private equity investment funds that meet the pilot requirements can moderately relax the restrictions on the equity-to-debt ratio, and can expand their sources of investment funds by applying for operating property loans and M&A loans.
In addition, real estate private equity investment funds that have completed the corresponding procedures during the investment period can open for subscription and subscription (subscription) after the filing is completed.
Chen Cong, chief analyst of infrastructure and modern service industries at CITIC Securities, believes that differentiated arrangements in terms of stock-to-debt ratio restrictions can better adapt to the investment strategies of real estate private equity investment funds, improve the flexibility of pilot product investment, and help encourage private equity funds Large-scale and standardized participation in investment will greatly optimize my country's real estate asset pricing system, effectively alleviate the financing difficulties of some enterprises, and reduce enterprise costs.
Judging from the market reaction, institutional investors are more active in participating.
"The company will conduct active research, strive to enter the pilot program, help play the role of private equity funds, and explore new development models." Ma Lin said, and also expects that with the liberalization of commercial REITs in the future, real estate private equity investment funds will have more exit channels. It is clear, and can provide more convenience in terms of fund custody and tax incentives, and provide more assistance for the healthy development of real estate.
"The investment scope of the real estate investment fund pilot still adheres to the principle of 'housing to live in, not speculation' and supports the real economy. Projects such as rental housing, affordable housing, other eligible residential housing, and commercial housing are in line with this principle. , real estate investment funds have great prospects.” Jiang Yucai said.
Revitalize high-quality stock assets
In fact, real estate private equity investment funds have developed into an important investment category in mature overseas markets.
In recent years, some private equity institutions in my country have successively set up private equity funds investing in commercial real estate and infrastructure and registered them with the Fund Industry Association, constantly exploring and accumulating experience in real estate investment operations.
According to the data, as of the end of 2022, there are 838 private equity real estate funds with a surviving scale of 404.3 billion yuan, and 1,424 private equity infrastructure funds with a surviving scale of 1.21 trillion yuan.
Industry insiders believe that under the existing framework of private equity investment funds, the establishment of a new "real estate private equity investment fund" can further leverage the advantages of private equity funds in diversified asset allocation, meet the reasonable financing needs of the real estate sector, and promote a virtuous circle and healthy development of the industry.
The real estate industry will usher in good news.
Chen Cong believes that the implementation of the pilot program will further fill the shortage of equity financing for real estate companies and actively resolve the financial difficulties of real estate companies. It is expected to provide new sources of incremental funds for the industry and revitalize high-quality stock assets. It will bring substantial help to the development of real estate enterprises that hold high-quality stock assets.
For the real estate private equity industry, the launch of the pilot program is also of positive significance.
Jiang Yucai believes that this pilot program has established clear norms for private equity funds to participate in real estate investment, and through the selection of leading private equity fund managers to carry out the pilot program and play a demonstration effect, it will help attract more private equity investment institutions to accumulate investment scale and exit experience , meet the pilot requirements for managers as soon as possible, and promote the vigorous and standardized development of real estate private equity funds.
(Economic Daily)