Housing Real Estate Investment Trust Fund Financing Mode And Mechanism Research

In1991, our country has founded the indemnificatory apartment system. In2011, we plan to build ten million indemnificatory apartments. The exact plan contains4million low-rent housings and public rental housings. The low-rent housings and public rental housings need about40million, and it’s a total livelihood project unlike affordable housings, price-fixed housing and rebuild shanty areas. Government need to afford fund for them. So the finance gap is very huge.This article considers from the residential market, medium and small investors, and government and real estate enterprises. And introduces a new financial instrument to deal with the fund for building low-rent housings:the China low-rent housing REITs (Real Estate Investment Trusts).This article has researched three factors about the new financial instrument:the low-rent housing Real Estate Invest Trusts.First, we have researched the financing mode of the low-rent housing REITs. This article presents organization form, issuing form, business model, and the way to raise money about the low-rent housing REITs. Then joining the condition of our country, the author think that: the low-rent housing REITs should be organized by contract, the issuing form should be chose form, the business model should be equity, and the low-rent housing REITs should be a privately offered fund.Second, we talk about the mechanism of REITs. This article mainly talks about the operating mechanism and governance mechanism about REITs. Credit rating and enhancement system, capital rating system, and gaining system form the operation mechanism. The governance mechanism contains information disclosure system and the oversight system.Third, the development of a new thing will meet obstacle in reality. So does the low-rent housing REITs. REITs in our country will meet some problems in legal system, financial market, credit system, and talent. We give some suggestions to solve them. First of all, author thinks that we should perfect laws and regulations, especially laws and regulations in real estate, security, trust, and revenue. Second author reckons that we should perfect the financial market in two factors:inner management and exterior supervises. Third author think we should take some action to strengthen the credit management on government and lessees. At last, talent is the basic factor in development of the low-rent housing REITs. We should train eligible investors and professionals.Now REITs is making experiments in Tianjing and Shanghai. This will collect experience about REITs. And it will make a big development in our country in the future.