A number of public REITs have recently been declared. On March 3, BBMG Group announced that it had submitted the registration and listing application materials for public REITs to the China Securities Regulatory Commission and the Shanghai ** Stock Exchange. At the same time, BBMG Group said that it has applied to the Stock Exchange for the proposed spin-off of the relevant REITs and independent listing on the Shanghai ** Stock Exchange, which has now been confirmed. In addition to this product, on March 1, the application materials of another 3 REITs were accepted by the China Securities Regulatory Commission. Focusing on the performance of the public REITs market, ninety percent of products have risen by more than 10% in the past month. Some industry insiders said that the original equity holder intends to spin off the product and hold it together with public investors, which can give full play to the management ability of the original owner and better protect the interests of investors. On the whole, driven by policy support and market demand, the public REITs market is expected to continue to grow.
4 new products were declared one after another.
On March 3, BBMG Group announced that it had submitted the registration and listing application materials for public REITs to the China Securities Regulatory Commission and the Shanghai ** Stock Exchange. In addition, BBMG has applied to the Stock Exchange for the proposed spin-off of the relevant REITs and their independent listing on the Shanghai ** Stock Exchange, which has now been confirmed. Upon completion of the proposed spin-off, the public REITs will be 35% and 65% owned by BBMG Group and other public investors, respectively.
According to the announcement, BBMG Group intends to select the underlying assets located in the Jinyu Intelligent Manufacturing Factory Industrial Park, Xisanqi, Haidian District, Beijing as the target assets for the issuance of public REITs. Taking into account the estimated offer price and number of units issued by the public REITs, the proceeds of the proposed spin-off will be approximately 153.1 billion yuan, and the proceeds from the spin-off will be mainly used for the investment and construction of other industrial parks.
According to the announcement, the proposed spin-off will enable BBMG Group to enhance the company's capital market influence and broaden investment and financing channels through innovative capital operation models, and revitalize infrastructure stock assets.
Li Chao, investment director of Sansheng Capital, said that BBMG Group's listing of assets with better operating status (cash flow) into public REITs products illustrates the risk isolation characteristics of public REITs, that is, it does not rely on the credit and asset status of the parent company (the original equity holder), but on the operation of the underlying assets. As long as the investment and operation of the underlying assets is good, it can quickly revitalize the assets for the parent company or the original equity holder, quickly return funds and achieve bailout, which is also an effective way for real estate developers to save themselves.
Jia Zhi, managing director of Hualin** Asset Management Tribe, also believes that the original equity holder of the public REITs intends to spin off the product and hold it together with public investors, which can give full play to the management ability of the original equity holder, better ensure the follow-up operation of the project, and better protect the interests of investors.
In addition to the above-mentioned products, recently, the declaration and issuance of a number of public REITs have also ushered in new progress. On March 1, the application materials of 3 REITs were accepted by the China Securities Regulatory Commission, namely Jianxin Jianrong Home Rental Housing REIT, Zhongjin Liandong Science and Technology Innovation Industrial Park REIT, and Huaxia Wanwei Warehousing and Logistics REIT.
In addition, Flush ifind data shows that E Fund Shenzhen Expressway REIT has officially started to raise since March 4, and Harvest China Power Construction Clean Energy REIT will also start raising on March 11.
The public REITs market is expected to maintain its growth trend.
While the application and issuance market is hot, the stock public offering REITs have also achieved relatively bright results recently. At present, the REITs market has trended towards **. As of March 1, 2024, the CSI REITs Index has been **7 year-to-date37%, an increase of 1463%。In terms of specific products, as of March 4, the 30 listed public REITs in the whole market have also increased by more than 10% in the past month, accounting for 90%. Among them, Bosera China Merchants Shekou Industrial Park REIT with 3801% of the recent one-month increase ranked first. In the same period, Harvest JD warehousing and logistics REIT followed closely behind, with an increase of 33 in the past month46%, and the REIT of Huaxia Hefei High-tech Innovation Industrial Park is 25An increase of 8% ranked third.
In Jia Zhi's view, public REITs have obvious advantages, which can not only revitalize the stock of fixed assets, but also enrich the market with high-quality investment products, and the number of such products is expected to continue to grow.
It is worth mentioning that during the two sessions of the National People's Congress, REITs also attracted much attention. On March 3, according to the Guangdong Securities Regulatory Bureau, Yang Zongru, a member of the National Committee of the Chinese People's Political Consultative Conference and Secretary of the Party Committee and Director of the Guangdong Securities Regulatory Bureau, said that it is recommended to strengthen the publicity of the pilot policy of infrastructure public REITs, accelerate the implementation of infrastructure public REITs projects that have been launched, and support infrastructure projects with stable operating cash flow and income to use public REITs for financing.
Jia Zhi said that with the increase in the number of public REITs and the extension of the operation cycle, investors can have a more comprehensive and rational understanding of such products. Especially on February 8, after the public REITs were defined as equity products by the China Securities Regulatory Commission, investors can look at the fluctuations of such products more rationally and in the long run, which is more conducive to the subsequent development of this product.
In the view of economist and new finance expert Yu Fenghui, with the advancement of the pilot of public REITs in the infrastructure sector, more companies may participate in the public REITs market. The ** of the CSI REITs Index indicates that the market has a high recognition and demand for public REITs, and the public REITs market is expected to continue to maintain a growth trend driven by policy support and market demand. However, it should be noted that market trends are also affected by macroeconomic and policy adjustments, and investors should also pay attention to market risks when participating.
Beijing Business Daily reporter Liu Yuyang Hao Yan.