Case Study On The Financing Sustainability For Trust Backed Securitization Of The Mofang Apartments

Long-term rental apartment is a new type of business in the rental housing market.However,due to the facts of high cost,long circle of funds as long as the asset-light strategy,it is hard to financing for the most enterprises.In January 2017,Mofang apartment issued the trust backed securitization of Mofang,which is the first product in the long-term rental market.This paper bases from the perspective of concluding a reproducible financing method for the most long-term rental enterprises,through the use of comparative analysis and financial analysis,analyzing the transaction structure design,future cash flow,financing cost,financing benefits,and concluding the factors affecting future rental income scale and stability of underlying assets.Considering that the securitization of Mofang apartment adopted the structure design of double SPV to realize the transformation of uncertain future receivables into certain creditor’s rights,this paper focuses the study of the transaction structure and the stability of basic assets.The conclusion is as follows:(1)Mofang apartment realizes the determination of underlying assets and claims through the design of double SPV transaction structure;(2)The cash flow of basic assets contains good-stability;(3)The actual financing cost seems high,but the financing benefit is remarkable;(4)The future rental income of underlying assets is closely related to macro-policy control,expected capacity of the market,business operation and other factors.Finally,based on the development characteristics of long-rental apartments and the existing problems in the process of Mofang apartment securitization,this paper puts forward its own suggestions from three aspects,including government,long-rental apartments enterprises and financial participating institutions.