's previous release of REITs expansion guidelines, the market has officially ushered in the first batch of public REITs expansion. The reporter from
learned from the two major exchanges in Shanghai and Shenzhen that as of October 8, a total of 5 public REITs have submitted applications for expansion, and all relevant applications have been successfully accepted. The 5 products are Bosera Shekou Production Park REIT, Hongtu Yantian Port REIT, Huaan Zhangjiang Everbright REIT, Fuguo Capital Water REIT, and CICC ProLogis REIT. The expansion targets cover industrial parks, warehousing and logistics, and clean energy and other assets. . Analysts at
said that fundraising is one of the important channels to realize the equity nature of publicly offered REITs, which can enhance the stability of cash flow creation and enhance the ability of assets to resist risks. Related REITs are expected to reduce their valuations and increase their yields due to the expansion of fundraising. Level. In product selection, investors should focus on the underlying asset attributes, especially the three aspects of asset quality, scale and secondary market price level, and must not blindly chase the increase.
Targeted sales target no more than 35
Specifically, in terms of the expansion method, 5 products have adopted the targeted expansion method, the target of the sale is not more than 35, and the target price of the targeted expansion should not be lower than the base date of the price 90% of the average transaction price of infrastructure funds in the first 20 trading days of , which cannot be transferred within 6 months from the date of listing.
(screenshot source: the official website of the exchange)
's expansion targets cover industrial parks, warehousing logistics, clean energy and other assets. Among them, CICC ProLogis REIT plans to raise 1.767 billion yuan through the expansion and offering to subscribe for all the asset-backed securities of the second phase of the asset-backed special plan issued by CICC, and ultimately invest in Qingdao, Shandong Province and Guangdong Province. The three warehousing and logistics park projects in Jiangmen and Chongqing have an appraised value of 1.604 billion yuan, which is the one with the highest appraisal value of the assets to be purchased among the five products.
In addition, the infrastructure projects that Bosera Shekou Industrial Park REIT intends to purchase is part of the infrastructure of the second phase of the China Merchants Guangming Science and Technology Park Technology Enterprise Accelerator Project in Shenzhen Guangming High-tech Park (referred to as " Guangming Project"), including the project located in Guangming. High-tech Park East Area, China Merchants Guangming Science and Technology Park Building A, A-6, B-3, B-4. For the expansion of the fundraising of Fugou Capital Water REIT, it plans to subscribe for all the asset-backed securities of the second phase of the asset-backed special plan and finally invest in the sewage treatment franchise PPP project in Changzhi City. The source of funds for the newly purchased infrastructure project is the expansion fund. Wang Jiatong, investment director of
Furong Fund’s public REITs, said bluntly that public REITs are essentially IPOs of assets, which are both debt and equity. The debt nature is reflected in the stable income of the underlying assets and the mandatory dividends in the REITs institutional arrangement, and the equity nature is reflected in the value-added income of the assets. “Expansion can not only diversify investment through assets, enhance the stability of cash flow creation, improve the ability of asset packages to resist risks, but also improve the recognition of the capital market, so as to obtain better credit ratings, reduce debt interest rates, and boost leverages the positive effect of to create more value for investors.”
There will be more fundraising in the future
It should be pointed out that the above five products have started fundraising, which means that the public offering REITs launched earlier this year are related to the fundraising expansion. The rules have ushered in the official landing. On May 25 this year, the General Office of the State Council issued the "Opinions on Further Revitalizing Existing Assets and Expanding Effective Investment", proposing to establish and improve the fundraising mechanism and explore the establishment of a multi-level infrastructure REITs market. On May 31, under the overall guidance of the China Securities Regulatory Commission, the Shenzhen Stock Exchange officially released the "Guidelines for the Public Offering of Infrastructure Securities Investment Funds No. 3 - Newly Purchased Infrastructure Projects (Trial)". On July 13, the General Office of the National Development and Reform Commission issued the "Notice on Doing a Good Job in the Application and Recommendation of Newly Purchased Projects of Real Estate Investment Trusts (REITs) in the Infrastructure Field", encouraging listed infrastructure REITs to raise funds through fundraising and other means The purchase of high-quality assets provides a guarantee for the efficient and stable progress of the application and recommendation of newly purchased projects.
Everbright Securities said in a research report that the first batch of publicly offered REITs ushered in expansion, and more fundamentalsInfrastructure is included in the underlying assets, and related REITs are expected to lower their valuations and increase their yields due to increased fundraising. It is the general trend that domestic REITs issuance has ushered in vigorous development. After the first batch of public offering REITs successfully achieved expansion, more REITs expansion companies will emerge in the future, and the market yield of REITs with high-quality underlying assets will steadily increase. We continue to be optimistic about the development of the public offering REIT industry. . Looking at it in detail, Bosera Fund said that the Guangming project is an important part of China Merchants Smart City, which gathers high-tech industries such as intelligent manufacturing, biomedicine, new materials, and new-generation information technology, and is a typical representative of the intelligent modeling park. After these expanded assets were incorporated into Bosera China Merchants Shekou REIT, they still entrusted the management of professional operation and management companies under China Merchants Group, and raised funds for re-construction to build a closed loop of investment and withdrawal of "capital-capital-assets-capital", with the stock of Promote investment with incremental financing, improve investment efficiency and investment level, build emerging industry clusters with international influence, and create a new paradigm for scientific research and economic development in the Guangdong-Hong Kong-Macao Greater Bay Area.
pays attention to the attributes of the underlying assets, and don’t blindly chase up
Since the first batch of pilot projects were launched in June 2021, the lineup of publicly offered REITs has gradually expanded. So far, the scale of funds raised by listed projects has exceeded 60 billion yuan. And, there are more "recruits" on the way.
The official website of the Shenzhen Stock Exchange shows that the Huaxia Heda Hi-Tech Industrial Park Closed Infrastructure Securities Investment Fund (referred to as "Heda Hi-Tech REITs") reported on September 14 and has now entered the inquiry stage. The underlying assets of this product are the incubator project and the first phase of Heda Pharmaceutical Valley, both located in Hangzhou Economic and Technological Development Zone, which is the core area of industrial development, with an estimated value of approximately RMB 1.4722 billion. It is the first pharmaceutical industrial park in China Public REITs. According to the official website of Shanghai Stock Exchange, China Asset Management China Resources Youchao Leasing Housing Closed Infrastructure Securities Investment Fund submitted the application and was accepted. It is the first state-owned enterprise rental housing REITs and the fourth affordable housing REITs in the whole market.
From the perspective of market performance, the broad development prospects of public REITs have been recognized by the market. Wind data shows that as of October 8, 17 publicly traded REITs have achieved positive returns since their listing. Among them, 15 products have a return rate of more than 10%, and seven products such as Huaan Zhangjiang Guangdayuan REIT have a return rate of more than 10%. 40%. Chen Xiong (pseudonym), an investment researcher of
public REITs, told reporters that the sustainable returns for investors mainly come from the good returns of the underlying assets. Public REITs adopt the structure of "public fund + ABS (asset-backed securities)" in structure, investing more than 80% of the fund's assets in infrastructure asset-backed securities and holding all of its shares. At the same time, the fund holds the entire equity of the infrastructure project company through infrastructure asset-backed securities, and the fund manager actively operates and manages the infrastructure project, with the main purpose of obtaining stable cash flow such as infrastructure project rent and charges, and the income distribution ratio is not low. 90% of the amount available for distribution in the combined fund year. These institutional settings ensure that publicly offered REITs can bring relatively stable investment returns to investors.
In terms of product selection, Zhu Yongqiang, general manager of Cinda Australia and Asia Fund, believes that investors should focus on the attributes of the underlying assets and make a horizontal comparison with the return on assets of the same type. Personal risk preference to choose. Wang Jiatong said that investors should pay attention to the quality, scale and price level of the secondary market. It will take some time from the release of the expansion news to the completion of the expansion. If the market has risen significantly since the release of the expansion news, there may be a situation of "exhausting all the positives and taking profits". Investors should not blindly chase the increase. .
Editor in charge: Lin Gen
Proofreading: Wang Jincheng
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