Real Estate Project Financing Model Study

On April 17,2010 the State Council issued 10 file explicitly requested that provinces, autonomous regions and municipalities directly under the central government must ensure supportability project construction completion of 300 million sets of affordable housing construction and renovation of 280 million sets of shantytown.At the end of 2012, strive to solve the housing problems of 15.4 million low-income families.2010 July housing and urban construction department and other 6 departments specified that the government develop public rental housing and provincial people's government assume overall responsibility, on the implementation of the county. But now debt of many provinces has exceeded their revenue. According to Audit Report on the 2008 Central Budget Implementation and Other Financial Revenues and Expenditures issued by National Audit Office of the People's Public of China, by the end of 2009, the 18 provinces,16 cities, and 36 county government debt balance audited aggregated 2.79 trillion yuan, the local government debt is much larger than expected.To sum up, the current government entities at all levels have arduous task of building affordable housing and renovating shantytown housing, but lack of money. Affordable housing demand is big.People are queuing up for the purchase or rent. At this time the government has introduced many preferential policies, to encourage enterprises to participate in the construction of affordable housing and the shantytown housing. Real estate enterprises should be innovative thinking, adopt various financing model, to create conditions for the government and people to become free exchange for her to lay the foundation of development.According to the common mode of project financing, combining the characteristics of real estate industry, this paper pointed out which forms the real estate project financing can take, basically having direct arrangement mode, project financing mode, the use of facilities model production payment mode, BOT, ABS financing mode, the public sector, private enterprise cooperation mode, and sales and leaseback model etc, analyzed the advantages and disadvantages of these models and which types of real estate projects these models are suitable for. The sales and leaseback financing mode is on the basis of my financing theory, and has been used in practice. The facility use model, production payment mode, the public sector and private enterprise cooperation model are suitable for the government to solve the economically affordable housing and low-rent housing construction.