China News Service, Beijing, March 22: Title: China’s first batch of consumer infrastructure public offering REITs were successfully launched to revitalize commercial real estate.
Sino-Singapore Finance reporter Ruan Yulin
On the 21st, international real estate services and consulting company Cushman & Wakefield released a report on "Public Offering of Consumer Infrastructure REITs: Returning to Business Essence and Realizing Asset Value" in Beijing. The report shows that from the end of 2023 to the beginning of 2024, six consumer infrastructure REITs, including China Resources, SCPG, Jinmao, Wumart, Capital and Bailian, have officially declared. Among them, China Resources, Jinmao and Wumart REITs have been successfully issued. So far, my country’s first batch of consumer infrastructure REITs have been successfully issued. Infrastructure public offering REITs were successfully implemented. The first six products have laid a solid foundation for my country's consumer infrastructure public REITs.
The report shows that when compared horizontally with other types of real estate, commercial projects have the highest level of marketization and greater flexibility in future growth potential. Cushman & Wakefield said that overall, the cities where the declared consumer infrastructure projects are located have good fundamentals, high consumption activity, and positive macroeconomic prospects in the future.
Up to now, the underlying asset types of consumer infrastructure REITs that have been declared are rich, covering three business categories: shopping malls, department stores, and professional business centers. This has greatly expanded the framework of consumer infrastructure REITs and provided a diversified environment for consumer infrastructure REITs. It has laid a solid foundation for its development and the continued issuance of subsequent projects. Hu Feng, general manager of Cushman & Wakefield Beijing Co., Ltd. and director of the North District Valuation and Consulting Services Department, said that the successful issuance of the first batch of consumer public REITs has expanded the scale and depth of the public REITs market.
The report believes that by analyzing the income and cost composition of the first six projects, compared with other types of infrastructure underlying assets, the types, models, income and cost composition of consumer infrastructure are more diverse and complex, and the economy where the assets are located The development situation, the competition pattern in the business district, the consumption habits of surrounding customer groups, as well as the internal movement lines, spatial scenes, format ratios, brand combinations, etc. of the project may all affect the operation of a commercial facility.
Chen Jiahui, Managing Director of Cushman & Wakefield's Greater China Valuation and Advisory Services Department, said that the issuance of consumer infrastructure public REITs is not only macro-economically beneficial to the prosperity and long-term development of my country's infrastructure public REITs market, but also contributes to the domestic macro-circulation pattern, and is also beneficial to daily life. At the same level, through professional asset management, we encourage people to enter business and consumer commerce, so that commercial assets and people's lives can rely on and achieve mutual success, and achieve the country's strategic goal of promoting consumption. (over)