Research On The Application Of REITs To The Old-age Real Estate In China

This article is concerned with applying Real Estate Investment Trusts(REITs)to the real estate for elderly in China.It comprehensively evaluates the necessity and feasibility,analyses the existing problems and provides corresponding solutions,intended to promote the real estate for elderly industry in our country.The aggravating trend of aging population brings enormous demands for real estate for elderly,which has the characteristic of both real estate industry and elderly nursing system.Capital assets play an important role in the development process,meanwhile,long-term stable operation and professional team management are also essential for a sustainable growth.All these factors make real estate for elderly a risky investment with long payback period.To obtain a rapid and steady development,a good financial model is the key.Real Estate Investment Trust is an innovative combination of real estate and finance.REITs realize the securitization of real estate,which greatly reduces the threshold of real estate investment,and provides considerable dividend as well as high degree of liquidity.All these benefits help to attract large amounts of low-cost long-term capital,providing excellent solutions for the issues of high investment and long circulation period.In 2014,national regulators explicitly supported real estate enterprises to actively and steadily carry out the REITs pilot projects,and implement recording system for asset securitization,leading to a thriving development of real estate securitization.However,main products that have been issued are ABS,CMBS and semi-REITs,rather than standard REITs.In order to study the necessity and feasibility of applying REITs to real estate for elderly in our country,this article adopts the documentation method,searching relevant theories and research results of REITs,to present comprehensive development status.By means of contrastive analysis,this article compares domestic market environment and relative systems with the US,summarizing the problems to be solved as for the REITs in China.Case studies are also employed in this article.Ventas,American model of REITs,is comprehensively analyzed for its success.Meanwhile,some classic cases of our country are also described for cross reference.At the end of the article,some advices are proposed for the REITs application,according to current domestic market environment.This article is comprised of 5 chapters.Chapter 1 is the introduction,expounding background and significance of this topic,relevant references,general ideas and basic methods.Chapter 2 includes two parts: China's status of real estate for elderly and the REITs experiences in America.Part1 discusses the operating and financing mode of current real estate for elderly in China,highlighting the difficulties;part 2 studies the experiences of American REITs,from social background,system evolution,to the business model of Ventas.Chapter 3 analyzes the connotation of REITs.By comparing with stocks and mutual funds,it demonstrates the advantages of REITs,especially to the real estate for elderly.This chapter also refers to domestic cases of REITs and semi-REITs,exhibiting the differences.Chapter 4 shows the problems of applying REITs in China,including legal systems,fiscal and taxation systems,personnel management and business models.Chapter 5 concludes with a suggestion: improve laws and regulations,fiscal and taxation systems,information disclosure and regulatory systems;provide policy supports for real estate for elderly to reduce its cost,expand its capital channels and train professional staffs in various ways.