The "Notice" proposes to give priority to supporting infrastructure short-board projects and encourage new infrastructure projects to carry out pilot projects, mainly including warehousing and logistics projects; Toll road, railway, airport and port projects; Intelligent transportation, smart energy, smart city projects, etc. In addition, national strategic emerging industrial clusters, high-tech industrial parks and characteristic industrial parks are encouraged to carry out pilot projects.
It is worth noting that real estate investment trusts (REITs) in the field of infrastructure focus on infrastructure and other fields within the industry, reflecting the attitude of preventing "real estate". Article 6 of the Notice points out that real estate projects such as hotels, shopping malls, office buildings, apartments and houses are not included in the pilot scope.
Compared with the previous Circular No.40 and the Exposure Draft, the Notice further subdivided the industry requirements, stipulated the bottom line requirements of cash flow and net cash distribution rate, and encouraged the use of recovered funds for infrastructure construction.
The "Notice" clarifies that the pilot projects meet the basic conditions. These include: the project operation time is not less than 3 years in principle; The cash flow continues to be stable and the sources are reasonably dispersed, and the return on investment is good. In the past three years, the overall profit or net operating cash flow has remained positive. The distribution rate of estimated net cash flow in the next three years (estimated annual distributable cash flow/target real estate appraisal net value) is not less than 4% in principle.