On March 24, the first public offering REITs in 2022, which attracted much market attention, China Communications Construction REIT (abbreviation: CCCC REIT code: 508018) disclosed the fund contract, prospectus and inquiry announcement. According to relevant information, CCCC REIT will conduct an inquiry from 9:00-15:00 on March 29, 2022, and the inquiry range is 8.467 yuan/unit – 10.067 yuan/unit, and will be finalized through offline inquiry. The subscription price of fund units.
CCCC REIT will use a combination of targeted placement to strategic investors (strategic placement), price inquiry placement to qualified offline investors (offline offering), and public offering to public investors (public offering). Offline offerings are implemented through the “REITs Inquiry and Subscription System” of the Shanghai Stock Exchange; public offerings are implemented through on-site securities operating institutions, fund managers and their entrusted OTC fund sales institutions; strategic placements are implemented through fund managers.
According to the data, the total number of fund shares approved by the China Securities Regulatory Commission for the sale of CCCC REIT is 1 billion, and the number of initial strategic placement fund shares is 750 million, accounting for 75% of the total shares offered. Among them, the original shareholders or their related parties under the same control plan to subscribe for 200 million shares, accounting for 20% of the total offering shares; other strategic investors plan to subscribe for 550 million shares, accounting for the total offering shares. 55%. The initial number of fund shares sold offline was 175 million, accounting for 17.50% of the total number of shares offered, and accounting for 70% of the total number of funds offered after deducting the portion placed on strategic investors. The initial number of fund shares subscribed by public investors is 75 million, accounting for 7.5% of the total number of shares offered, and accounting for 30% of the number of shares offered after deducting the portion placed to strategic investors. The number of fund units for the final strategic placement, offline offering and public investor offering will be determined based on the clawback (if any).
The core competitiveness of public REITs is inseparable from the high-quality value of the underlying assets. The underlying underlying assets of CCCC REIT are the Jiayu-Tongcheng section of the Wuhan-Shenzhen Expressway in Hubei Province. Wuhan-Shenzhen Expressway is a major transportation channel connecting the central and southern regions of my country. It has a large population, developed economy and strong demand for road network traffic. It serves the “Central Development Strategy” proposed in the “14th Five-Year Plan” and is conducive to promoting the Wuhan urban circle. Economic integration and coordinated economic and social development along the route are of great significance. Among them, the north-south channel where Jiatong Expressway is located is of great importance but the channel is relatively narrow. In the D-shaped area, Wushen Expressway has comparative advantages over Beijing-Hong Kong-Macao Expressway in terms of travel distance, travel time, comprehensive travel cost, and travel experience. It will drive the traffic volume and operating efficiency of the project to continue to improve. Public data shows that after the epidemic in 2020, the traffic volume of Jiatong Expressway has recovered rapidly. The annual compound growth rate of toll revenue in 2021 compared with 2019 is 7.30%, and the future growth potential is good. In addition, Jiatong high-speed truck traffic accounts for about 50%, and truck toll revenue accounts for more than 79% of total toll revenue, which can not only offset the impact of the free holiday policy, but also bring higher bicycle tolls for trucks. operating income. During the operation of CCCC REIT, more than 90% of the annual distributable amount of the merged fund can be distributed to investors in cash according to the operation of the expressway.
CCCC REIT is the first state-owned expressway REITs project. The project sponsor, China Communications Construction Co., Ltd. (hereinafter referred to as CCCC), is one of the few companies with a nationwide road production layout. my country’s largest expressway investor and a leader in the field of infrastructure construction. The operator of the underlying assets and the main original owner of the project, CCCC Investment, is a wholly-owned holding company of China Communications Construction. The company has fifteen years of experience in investment, construction and operation in the field of expressways. China Communications Construction Group, the controlling shareholder of China Communications Construction, is a super-large state-owned enterprise controlled by the State-owned Assets Supervision and Administration Commission of the State Council. Ranked 61st in the Fortune 500.
According to public information, CCCC has undertaken the construction of a large number of super projects with high technical difficulty and great social impact, such as the Hong Kong-Zhuhai-Macao Bridge, Shanghai Yangshan Port, Yangtze River Estuary Channel Improvement, Beijing-Xinjiang Expressway, and Mombasa-Nairobi Railway. As of the end of June 2021, CCCC had opened 42 expressway projects (including shareholding projects), of which the cumulative investment in holding projects was 184.403 billion yuan; The estimated investment is RMB 370.107 billion, with abundant asset reserves and sustainable expansion of high-quality assets. It is particularly worth mentioning that CCCC REIT is the only listing platform for expressway assets under CCCC, which has extremely high strategic value and huge development potential. In addition, the ABS manager of CCCC REIT is CITIC Securities, a leading brokerage in the industry. CITIC Securities has rich experience in undertaking and issuing REITs, and is the leader in China’s equity REITs business. China Asset Management, the fund manager of CCCC REIT, also has rich experience in REITs research, and the alliance will provide strong support for the efficient and stable operation of CCCC REIT after its establishment.
Since the beginning of this year, the market has fluctuated frequently. Public REITs, as an investment product with low correlation with stocks and bonds and expected to receive stable cash dividends, will become an important part of investors’ asset allocation in the future. CCCC REIT is the first public offering in 2022. REITs, the first state-owned high-speed public offering REITs, will surely attract more market attention.Return to Sohu, see more
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