Case Study Of Shekou Industrial Park REITs Financing

In May 2021,the first batch of China’s infrastructure public offering REITs pilot projects were successfully launched,The emergence of infrastructure public offering REITs has become an important financing means of industrial parks.It is conducive to reducing the debt risk of China’s real estate industry and activating the funds deposited by the stock infrastructure assets to solve the financing problem of new industrial parks.Enterprises or government investment platforms with high-quality industrial park projects transfer the equity of the project through public offering REITs products to obtain financing,provide income to investors with the stable cash flow generated by the underlying assets,recover the invested funds in advance,and realize the early withdrawal of the project.Shekou Industrial Park REITs,as a public offering REITs of industrial parks issued for the first time in China,has a certain typicality.Therefore,this paper selects this case for financing research,hoping to get valuable and meaningful conclusions through the analysis of this case,so as to promote the development of public REITs in industrial parks in China.Using the method of combining theoretical research and case analysis,this paper focuses on the analysis of the financing effect of REITs in Shekou Industrial Park.Firstly,it introduces the asset securitization theory and financing priority theory related to REITs,and expounds the classification of REITs related concepts.Secondly,the basic situation of REITs project in Shekou Industrial Park is introduced in detail.Thirdly,using the combination of qualitative and quantitative methods,this paper makes a horizontal and vertical comparative analysis on the financing cost and financing scale of the project,and analyzes the financial performance and cash flow before and after financing by using the method of financial analysis and EVA performance evaluation index.Finally,combined with relevant literature and professional knowledge,this paper points out the possible limitations and risks of REITs financing in Shekou Industrial Park,and puts forward targeted improvement suggestions.Finally,it is concluded that the financing cost of REITs in Shekou Industrial Park is low,the value of basic assets is sufficient and the financing scale is large;After financing,it has a positive impact on the financial situation of the original equity holders,the operation ability and profitability of the project are improved,the operating cash flow is also increased,and the interest guarantee ability is improved.In addition,the project company needs to continue to incubate high-quality projects,improve operation and management capabilities and disperse project risks.The government also needs to continue to promote the development of public REITs,improve relevant systems and strengthen the supervision and management of public REITs industry.