On May 27, the General Office of the China Securities Regulatory Commission and the General Office of the National Development and Reform Commission jointly issued the “Regulations on Regulating the Pilot Issue of Affordable Rental Housing for Real Estate Investment Trusts in the Infrastructure Field”.fund(REITs) Relevant Work Notice” (hereinafter referred to as the “Notice”), which aims to implement the major decisions and arrangements of the Party Central Committee and the State Council on accelerating the development of affordable rental housing and promoting the resolution of outstanding housing problems in large cities, and promoting affordable rental housing REITs. The business was carried out in an orderly manner.
On the same day, the first batch of affordable rental housing REITs projects in the country were officially declared: Xiamen Anju Group Co., Ltd. REITs project and Shenzhen Talent Anju REITs project formally submitted application materials to the Shanghai and Shenzhen Stock Exchanges, and also reported to the China Securities Regulatory Commission on the same day.
“The “Notice” will help to further expand the coverage of publicly offered REITs to affordable rental housing and increase the supply of related products, which is of great significance to the development of the domestic REITs market.”CITIC SecuritiesChief Economist MingmingsecuritiesThe reporter of the Daily said that, in general, the “Notice” has a strong signal significance, and it is expected that there will be more specific policies to support the healthy development of affordable rental housing REITs.
Abundant financing channels for affordable rental housing
Since 2022, affordable rental housing REITs have entered a stage of rapid advancement. On March 18, the China Securities Regulatory Commission stated that it is working with relevant ministries and commissions to study and promote the pilot work of affordable rental housing REITs, and to promote the implementation of the project as soon as possible; Promote the healthy development of real estate investment trusts (REITs) in the infrastructure sector; further improve the efficiency of recommendation and review, and encourage more eligible infrastructure REITs projects to be issued and listed.
The “Notice” mainly includes the following four aspects: firstly, it clarifies that the initiator should be an independent legal person that conducts affordable rental housing business; secondly, it emphasizes the strict closed-loop management mechanism for the use of recovered funds to ensure that the net recovered funds are preferentially used for new Construction of affordable rental housing projects, or use in other key areas of infrastructure to make up for shortcomings; the third is to consolidate the main responsibility of the institution, requiring the sponsor to hold the controlling stakeshareholderThe actual controller shall not misappropriate the recovered funds; Fourth, strengthen communication and cooperation, the China Securities Regulatory Commission and the National Development and Reform Commission will guide Shanghai and ShenzhensecuritiesExchanges, securities regulatory bureaus and local development and reform commissions shall do a good job in recommendation, review and daily supervision.
“The introduction of affordable rental housing REITs products has adapted to the current market demand and enriched the basic asset types of infrastructure public offering REITs, which not only guides the allocation of social funds to high-quality rental housing projects, but also expands the source of funds for affordable rental housing construction. , help enterprises reduce the pressure of project construction, promote enterprises to develop more high-quality projects, is conducive to the healthy development of the rental housing financial system, and promote the construction and development of the affordable rental housing market.”Shenwan HongyuanGui Haoming, chief market expertsecuritiesDaily reporter said.
“The “Notice” can promote the securitization of affordable rental housing assets and accelerate the construction of affordable rental housing projects, which is conducive to the stable and healthy development of the affordable rental housing market.” Tian Lihui, Dean of the Financial Development Research Institute of Nankai University, accepted the Securities Daily “The reporter said in an interview.
Mingming believes that for the development of affordable rental housing, the “Notice” is a further extension of the previous series of policies, enriching the financing channels for affordable rental housing through the public offering of REITs, and attracting social capital to participate. For participating entities, this also helps them revitalize existing assets and provide cash flow support.
More cities will actively prepare
On the day the “Notice” was released, 2 affordable rental housing REITs projects were officially declared. The REITs project of Xiamen Anju Group Co., Ltd. formally submitted the application materials to the China Securities Regulatory Commission and the Shanghai Stock Exchange. The REITs project manager of Xiamen Anju Group Co., Ltd. is CICC Fund, and the manager of the special plan is China International Capital Corporation Limited.
On the same day, the application materials for the Shenzhen Talent Housing REITs project have also been formally declared through the Shenzhen Stock Exchange’s infrastructure public offering REITs review business system, and will be reported to the China Securities Regulatory Commission on the same day.The main original stakeholder of the Shenzhen Talent Housing REITs infrastructure project is Shenzhen Talent Housing Group Co., Ltd., the fund manager is Red Earth Innovation Fund Management Co., Ltd., and the special plan manager is ShenzhenVenture capitalLaterite Asset Management (Shenzhen) Co., Ltd.
“The official declaration of the first batch of affordable rental housing REITs projects can be regarded as the application of theory to practice, which is a milestone.” Mingming said that in the future, affordable rental housing will be a major focus of future development. In this context, the advantages of helping the development of affordable rental housing through public offering of REITs will continue to be verified in practice. At the same time, based on the application and approval experience of this project, it is expected that more first- and second-tier cities will actively prepare for guarantees in the future. For rental housing REITs projects, the public REITs market is also expected to usher in more high-quality projects.
“Infrastructure public offering REITs, as an important new financing method, are more and more accepted by investors and financiers, and play an important role in assisting the construction of public facilities.” Chen Li, chief economist of Chuancai Securities, told Securities Daily The reporter said that in the future, with the implementation of the first batch of affordable rental housing REITs projects, more projects will be actively declared.
The China Securities Regulatory Commission said that in the next step, it will work with relevant departments and units to encourage the issuance of REITs for affordable rental housing with clear ownership, mature operating models, and sustainable market-oriented returns, and promote the implementation of pilot projects as soon as possible. Strengthen market supervision, urge original owners and intermediaries to be honest and trustworthy, and perform their duties in a responsible manner, so as to ensure the stable and long-term development of affordable rental housing REITs.
(Article source: Securities Daily Network)
(Original title: The two ministries and commissions issued a notice to promote the orderly development of affordable rental housing REITs, and 2 projects have been officially declared)
(Editor in charge: 65)