Without further ado, let's talk directly about the four major business models of industrial real estate
First, the real estate developer model
The real estate developer model is a model in which developers acquire land in industrial parks or other places, build industrial property products in the form of overall development or customized development, such as industrial complexes, headquarters complexes, etc., and then operate and manage the project by leasing, transferring or joint ventures, and finally obtain development profits. Liandong U Valley, Tian'an Cyber City, and Kuntin Group are typical representatives of the real estate developer model. In essence, the real estate developer model is not much different from the traditional residential development model, so the real estate developer model has become the main business model for many capital to enter the industrial real estate.
There are three ways for real estate developers to make a profit:
First, the property, that is, the industrial property profits, due to the huge investment in the early development of industrial real estate, and the lack of smooth industrial real estate financing channels in China, real estate developers have to increase the proportion of industrial property to quickly return funds, compared with international industrial real estate developers, China's real estate developers property sales ratio is high, generally more than 7 percent, taking Liandong U Valley as an example, its property rental and sales ratio is maintained at about 2:8.
Second, property leasing, that is, through the way of holding the property to rent out rental income, due to China's industrial land policy has a strong regional personality, many places stipulate that the property rights on industrial land can not be divided into units, strata or separate buildings, which blocks the profit channel of the property, the developer has to hold and rent the property, in order to obtain stable rent, although the property is slower, but can enable the developer to obtain property value-added income.
Clause. 3. Provide services, that is, make profits by providing basic supporting services and value-added services required by settled enterprises. In the era of more and more detailed professional division of labor, enterprises have more and more demand for professional and value-added services such as human resources, financial investment, and scientific and technological information, and basic property services can no longer meet the needs of enterprises. Providing supporting industrial services not only improves the investment attraction ability of the park, but also contains huge profit margins, and even existing industrial real estate developers have begun to transform into park service operators.
As a real estate developer, at least the following three capabilities need to be at the same time: product development capabilities, property products are the lifeline of real estate developers, but also the key to impress customers, real estate developers should first have a rich and diverse product system, such as industrial complexes, headquarters complexes, etc., and its product system should also be constantly adjusted and upgraded according to the needs of customers;Industrial investment ability, investment is the key to improve the rate of product removal, but also to achieve rolling development of the guarantee, real estate developers must set up a professional and strong investment team, the use of a variety of investment channels and strategies, to tap in line with their own product positioning of effective customers;Industrial service capacity, in the situation of convergence of preferential investment policies, park services have become an important weight to enhance the comprehensive competitiveness of the park and the success rate of investment promotion, the park can focus on the "idea incubation, early stage of entrepreneurship, enterprise growth, scale expansion, listing preparation" enterprise life cycle chain, to build a comprehensive enterprise service system, such as entrepreneurship training, market development, science and technology promotion, financing guarantee, management consulting, intellectual property services, listing counseling, etc.
Second, the new industrial city developer model
The developer model of the new industrial city is typical of Huaxia Fortune Foundation, Hongtai Development and Zhongnan Construction, which is also the earliest developer in the field of industrial real estate in China to practice the PPP model, and its business model is roughly as follows: A** and B industrial new city developers have reached a cooperation agreement on the development of C industrial new city (generally more than ten square kilometers or even dozens of square kilometers), and within the specified cooperation period, B developer is responsible for land leveling, road pipe corridors and other infrastructure construction work in the plot, schools, hospitals, culture, Construction and operation management of sports public facilities, industrial planning, project investment, publicity and promotion and other industrial development services, space planning, architectural design, property management, public project maintenance and other basic services;At the same time, developer B takes a certain proportion of the newly generated income in the new industrial city of C (i.e., the income after deducting the part of the **, provincial and municipal levels) as the return on investment, such as the newly generated land transfer fee, after-tax, non-tax income and special fundsAfter the end of the cooperation period, developer B will unconditionally hand over the property rights and operation rights of infrastructure and public facilities in the new industrial city to A**.
Developers of new industrial towns mainly make profits through primary land development and secondary land development. The first-level development of land is profitable, and the developers of the new industrial city are engaged in the development of the regional level instead of the first-level development, such as the construction of public facilities, etc., therefore, the land is its largest product, and the income from land transfer is also its largest first-level development income, in addition to the development of the new city by the developers of the new industrial city, such as the operation of the new city such as industrial investment, tax revenue, infrastructure supporting fees and other non-tax revenues and the special income that the local finance can pay are also its land development income. Land secondary development profits, that is, developers to obtain real estate land for secondary development, through the sale of real estate profits, at present, real estate development and sales revenue has become an important income for the development of new industrial city developers, taking China Fortune Foundation as an example, in 2013 its income and cost of residential facilities in the park accounted for more than 70%.
Developers of new industrial cities need to have at least the following three capabilities:
1.Negotiation skills.
In fact, the new industrial city developers are engaged in the development of the new city in place of the local government, and it is its natural attribute requirement to keep up with the pace of the new industrial city, and the developers of the new industrial city must conduct multiple rounds of negotiations with the first in the process of land acquisition, planning, development, operation and other links, especially in the land acquisition link, with the continuous enrichment of the local ** in the field of industrial real estate, the difficulty of the land negotiation of the industrial new city developers is very huge.
2.Regional planning capacity.
In order to make the development of the area go smoothly, it is necessary to have forward-looking, innovative and operational thinking in terms of blueprint description, goal formulation, industrial introduction, spatial layout, investment promotion, input and output, etc., and regional strategic planning and industrial planning are very important.
3.Ability to raise funds.
Developers must comprehensively use bank loans, trust financing, mezzanine financing, corporate bonds, medium-term notes, short-term financing volumes, debt financing, listing financing and other financing means to build a strong fund-raising capacity.
3. Industrial investor model
The industrial investor model is mainly represented by Zhangjiang Hi-Tech, Tsinghua Science and Technology Park and Hubei Hi-Tech Investment, which is also the earliest developer in China to implement the "base + ** two-wheel drive model, compared with the real estate developer model and the industrial new city developer model, the industrial investor not only invests funds in industrial real estate, but also invests funds in the enterprises settled in the park. The business model of industrial investors is as follows: industrial investors first raise social capital for the development of the park, which is not only invested in the development of land and industrial properties in the industrial park, but also invested in scientific and technological innovative enterprises with market prospects, and attracts a large number of innovative enterprises to settle in by means of investment.
Industrial investors can make profits through three ways: park operation, capital operation, and management.
1.The mode of operation of the park.
The park business is still one of the main businesses of industrial investors, and similar to real estate developers and new industrial city developers, industrial investors can also obtain income by selling land in the park and renting and selling industrial properties.
2.Capital operation model.
Industrial investors give full play to the advantages of being fully familiar with the settled enterprises, and use industrial investment or property shares to incubate and cultivate growing enterprises, and after the incubation enterprises are acquired or listed, they will obtain capital appreciation by sharing the dividends of enterprise growth, forming a model of both "landlord" and "shareholder", in 2011, Zhangjiang Hi-Tech and Nanjing Hi-Tech respectively achieved investment income of 18.4 billion and 3700 million yuan.
3.Management mode.
Managing the issuance of industrial investment** and charging **management fees is also an important profit channel for industrial investors, such as Hubei High-tech Investment Management 14 venture capital**.
As an industrial investor, it needs to have the product development ability, industrial service ability, and industrial investment ability of the development and operation of the park, and also needs to have at least two major capabilities: fundraising and industrial investment, among which, the ability to raise funds refers to the ability of the main sponsor to raise capital from the society on a large scale and quickly, which is generally related to the experience of the management team, whether there is a guide to the bottom-up, the marketing ability of third-party financial institutions and other factorsIndustrial investment capability refers to the ability to invest in potential industrial projects with high quality, which can be achieved by forming a high-quality and experienced management team.
Fourth, the first investor model
*The investor model is an internationally popular industrial real estate business model with REITs as the core of asset-light operation, with GLP, Prologis, Goodman, Mapletree and other logistics real estate developers as typical representatives, and the domestic Vantone Holdings is practicing this business model, which is roughly shown in the following figure: **Investors through the issuance of industrial real estate** When the occupancy rate of industrial properties reaches a certain level and can generate considerable and stable cash flow every year, the property is capitalized through the issuance of REITs to complete a round of capital circulation, and then engage in the next round of investment.
*Investors make profits in two main ways: property leasing and property capitalization.
1.Property Rental.
Whether it is the renovation of old factories or new industrial properties, the purpose is to rent out industrial properties to earn stable cash flow, and a higher property occupancy rate is the basis for obtaining stable rents and capitalizing the property.
2.Property capitalization.
Generally speaking, it takes about 10 years to spend about 10 years through property leasing, in order to improve the speed of capital turnover to achieve rapid rolling development, it is necessary to capitalize the mature property, and the issuance of REITs is a commonly used capitalization method, which not only shortens the capital period, but also enables investors to obtain additional property appreciation income.
For the best investors, their most critical capabilities are capital docking capabilities and asset management capabilities. **Only by having a good grasp of financial knowledge, financial instruments and channels can investors ensure that they can obtain the county level in the early stage of mergers and acquisitions and property investment and connect with the capital market in the future capital operation, so as to ensure that the company can obtain sufficient capital development momentum and clear exit channels in business development to maintain the company's investment operation. **The investor's own positioning determines that it must have strong enough asset management capabilities in order to hold and operate the property, and have a keen judgment and grasp of the property appreciation and asset value growth cycle to ensure the sustainable development of the company's performance. In order to have both capital docking capabilities and asset management capabilities, investors must set up a special department to be specifically responsible, taking GLP as an example, GLP has formed a "three-core linkage" model formed by the real estate development department, property management department, and management department, the real estate development department is mainly responsible for the development of logistics real estate and pre-investment, the property management department is mainly responsible for increasing the occupancy rate to more than 90%, and the management department is mainly responsible for docking capital.
For industrial real estate developers, especially new industrial real estate developers, there is no distinction between the four models, only suitable and unsuitable, and industrial real estate developers also need to choose a suitable business model within the boundaries of industry laws and regulations, according to their own resources and capabilities, so as to help themselves in the field of industrial real estate development and construction.