REITs generally refer to real estate trust and investment funds and are an important means of real estate securitization. Real estate securitization is a financial transaction process that directly transforms illiquid non-securities real estate investment into securities assets in the capital market. Real estate securitization includes two basic forms: real estate project financing securitization and real estate mortgage securitization.

Real estate investment fund is a collective investment system engaged in the acquisition, development, management, operation and marketing of real estate to obtain income.

2. Different requirements

Real estate private equity funds are not open, which have strict restrictions on investors, high asset requirements, millions of investments and investment periods of several years. The threshold of REITs is much lower, facing the public, starting from several thousand yuan.

Real estate investment trust fund (REITF) is a kind of trust fund, which collects the funds of a specific majority of investors by issuing income certificates, manages real estate investment by specialized investment institutions, and distributes the comprehensive investment income to investors in proportion.

3. Different relationships

Real estate private equity funds are equity relations, and real estate trust and investment funds are trust relations. REITs are actually a kind of trust, which is equivalent to publicly raised funds in nature. Different from the purely private nature of domestic trusts, REITs in the international sense are equivalent to funds in nature, with a few private placements, but most of them are public offerings.

At present, all funds in China are raised through public offering, which is called fund public offering. If a fund does not go through public offering, but privately raises funds for a specific target, it is called a private equity fund.

References:

Baidu encyclopedia -REITS

Baidu encyclopedia-real estate private equity fund