Recently, the public offering REITs (Real Estate Investment Trust Fund) market has been added, and the REITs rented by Huaxia Beijing Affordable Housing Center (hereinafter referred to as Huaxia Beijing Affordable Housing REITs) have been registered and approved by the China Securities Regulatory Commission, becoming the first public offering REITs in the field of public rental housing in China. So today, Bian Xiao is here to sort out the relevant knowledge of the fund for everyone. Let's have a look!
Rental housing REITs accelerate expansion
In recent years, China has continuously promoted the construction of affordable rental housing system. In the eyes of the industry, the construction of affordable rental housing is another new exploration of China's housing system reform under the new situation, the focus of solving the structural problems of housing in big cities, and an effective means to optimize the balance between supply and demand of real estate leasing and promote the healthy and stable development of the real estate industry.
The introduction of affordable rental housing REITs is conducive to revitalizing the existing assets, recovering the construction funds of new affordable rental housing projects, promoting the formation of a virtuous circle of investment and financing, and playing an important role in maintaining the stable and healthy development of the real estate market.
Specifically, the approved Huaxia Beijing affordable housing REIT is an infrastructure public offering initiated by Beijing Affordable Housing Center Co., Ltd. as the original owner, CITIC Securities as the special plan (ABS) manager and Huaxia Fund as the fund manager. The basic assets of this project are Longwen Jiayuan in Haidian District, Beijing and Xiyue Shang Jun in Chaoyang District, Beijing.
It is reported that Longwen Jiayuan Project and Xiyue Shang Jun Project were put into use in 20 15 and 20 18 respectively, with short building age, good property quality, complete living facilities in the community, high delivery standard and high rental rate. They are representative public rental housing projects in Beijing. After cultivation and perfect management in recent years, the two projects have entered a stable operation period, with a total valuation of about 1 1.5 1 100 million yuan. The recovered funds of this project will be mainly used for the housing construction project of surplus land in Beijing Coking Plant.
Previously, the first batch of two affordable rental housing REITs were approved on July 29th, namely, Red Earth Innovation Shenzhen Talent Housing REITs and Admiralty Xiamen Housing REITs. Therefore, Huaxia Beijing affordable housing REIT has become the third REIT product of rental housing in China.
More importantly, because the basic assets of Huaxia Beijing affordable housing REITs are two public rental housing projects, this means that public rental housing is included in public offering REITs for the first time, which is of great significance for further revitalizing existing assets.
Mo Yifan, Chief Executive Officer of Huaxia Fund Infrastructure and Real Estate Investment Department, said that the landing of affordable housing rental REITs is in line with the long-term policy of "staying and not speculating" and is an important measure for financial support to solve the housing difficulties of new citizens, young people and other groups. By revitalizing the stock assets of affordable rental housing, we can better support the construction of housing security system, form a virtuous circle of investment, increase the supply of affordable rental housing market, and better solve the people's livelihood problems.
"In addition, public offering of REITs, as an important innovative product in the domestic capital market, attracts social capital to actively participate in the investment in mature assets of affordable rental housing, which helps the relevant investment operators of affordable rental housing to revitalize existing assets, accelerate the construction of affordable rental housing, and improve the effective supply of affordable rental housing; It also helps to form a market-oriented pricing benchmark for domestic affordable rental housing; It also helps to promote the transformation of the service model of affordable rental housing to marketization and specialization. " Mo Yifan said.
Policy supply lays a solid foundation for development.
With the steady progress of public offering of REITs in China, the promotion of REITs in affordable housing has been strongly guided and supported by supervision and policies. As of August 10, there are 14 public infrastructure REITs listed and issued in the whole market, with a total issuance scale of 5465438+43 million yuan and a total market value of 62.824 billion yuan. From the perspective of asset types, it includes highways, industrial parks, warehousing and logistics, sewage treatment, garbage disposal projects, and affordable rental housing projects waiting for official sale.
Since the beginning of this year, REITs have officially entered the fast lane of development. On May 25th, General Office of the State Council issued "Opinions on Further Revitalizing Existing Assets and Expanding Effective Investment", proposing to promote the healthy development of real estate investment trusts (REITs) in infrastructure; Further improve the efficiency of recommendation and review, and encourage more qualified infrastructure REITs to be issued and listed.
Subsequently, on May 27th, the CSRC and the National Development and Reform Commission jointly issued the Notice on Standardizing and Doing a Good Job of Real Estate Investment Trust Funds (REITs) in the Pilot Issuance of Affordable Rental Housing to promote the standardized and orderly development of REITs business in affordable rental housing. The "Notice" mentioned that net recovered funds should be encouraged to invest in new projects with clear and mature conditions, which can form effective investment in a short period of time, and promote the formation of a virtuous circle of investment; The project should have clear ownership, mature operation mode and sustainable market-oriented benefits, and be recognized as an affordable rental housing project by relevant departments.
On July 29th, the CSRC also mentioned at the mid-year supervision meeting of the system in 2022 and the mobilization and deployment meeting of normalized long-term inspection and rectification that the scope of REITs should be steadily expanded, the normalized issuance should be accelerated, and the existing assets should be revitalized.
Public offering of REITs, known as "asset IPO", is an effective financial tool to revitalize existing assets, which can make huge "sleeping" infrastructure assets gain a liquidity premium, and then use the recovered funds for new infrastructure projects. Insiders pointed out that the construction of affordable housing needs a lot of capital investment, and public rental REITs can be an effective tool to broaden direct financing channels, which is also an important reason why the current infrastructure REITs are strongly supported by policies.
Dong Zhongyun, chief economist of AVIC Securities, said that the REITs project for renting houses is based on renting houses and supported by rental income. For the issuer and the real estate market, REITs for rental housing can effectively connect the asset side and the capital side, broaden the sources of rental housing funds, revitalize existing assets, and give priority to the construction of new affordable rental housing projects, which can ensure the smooth operation of the real estate security system; For investors, REITs provide new investment varieties and have long-term stable cash flow, which enables investors to participate in the development of rental housing market by investing in corresponding REITs projects.
In addition to the "bedding" of policies, the successive landing of REITs projects in public rental housing is directly related to the high adaptation of product characteristics. CITIC Securities analyst Ming Ming pointed out in the research report that REITs play an obvious role in broadening financing channels, revitalizing existing assets and promoting effective investment from the perspective of renting houses, and relevant enterprises have the incentive to try to securitize the assets of affordable rental houses; From the perspective of REITs market, the characteristics of long-term business objectives, relatively stable rents and high occupancy rate of rented houses are highly matched with REITs' requirements for underlying assets. The combination of the two can not only expand the scale of China REITs market, but also bring some benefits to investors.
Has long-term investment value.
In addition to "transferring" huge real estate assets and promoting the stable and healthy development of the rental housing market, the insiders also pointed out that as a public offering of property rights REITs, the affordable housing REITs project usually has the characteristics of long operating period, stable rent rate and strong anti-cyclicality, which has good long-term investment value and can further meet the growing wealth management needs of Chinese residents.
China's laws and regulations on infrastructure public offering REITs have certain requirements on the integrity of infrastructure assets, the maturity of operation, the dispersion of cash flow sources and the stability of income. Judging from the REITs of the three approved affordable rental houses, the underlying projects are all located in first-tier and second-tier cities, and they are all in employment concentrated areas with perfect living facilities. Such assets are often regarded as assets with relatively guaranteed quality.
Take the bottom asset apartment and Hengqi apartment in Xiamen REIT as examples, which all meet the requirements of the pilot stage of infrastructure public offering REITs. Specifically, these two projects have been recognized as affordable rental houses by Xiamen Housing Security and Housing Administration. By the end of March 2022, the occupancy rate exceeded 99%; 4,665 sets of rental housing, mainly individual tenants, with scattered sources of rent; It is estimated that the cash flow distribution rates from April to June, 2022, 65438+February and 2023 will be 4.04% and 4.05% respectively.
It is worth mentioning that the first two REITs for renting houses attracted the active subscription of various institutional investors. On August 8th, the announcement on the offering of fund shares issued by Anju REITss, an innovative Shenzhen talent of laterite, showed that this inquiry * * * received the inquiry and quotation information of 252 placing objects managed by 83 offline investors, and the total number of all placing objects to be subscribed was/kloc-0 186.245438+0000 billion, which was 133.03 times of the first offline offering share.
"Affordable rental housing is one of the ideal asset types of infrastructure public offering REITs in China. Compared with the basic assets of other publicly offered REITs, affordable rental housing has the characteristics of long operating period, stable cash flow and strong anti-cyclicality. For investors, renting real estate investment trusts for affordable housing can not only enrich their asset allocation, but also provide them with a relatively long-term stable source of income. " The relevant person in charge of CICC Fund said.
Mo Yifan believes that the investment value of REITs is mainly reflected in two points: first, it comes from the support of various policies, and this investment field has certain policy dividends; Second, affordable rental housing projects in various places have entered a period of rapid development, providing high-quality investment targets for affordable rental housing REITs. "REITs' basic assets have long-term stable cash flow and are suitable for stable investors who pursue long-term stable investment income, such as insurance funds and pensions." He also mentioned.
"For investors, affordable rental housing fits the country's important position of" housing and not speculating ",and the policy advantages such as land and taxation are remarkable. Affordable housing REITs is a new investment product with long-term investment value, but it should also be noted that the rental price of affordable housing is generally lower than the market level, so it is more suitable for stable investors with low risk appetite. " Dong Zhongyun said.
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