Professors: Investment Real Estate Trust can not Simply Superstitious Collateral(II)

Some trust companies try to participate in real estate project control risks

Data from the Trust Industry Association show that the real estate trust in 2018 is an absolute star, and the scale of fundraising has remained at the top for four consecutive quarters. A trust in the industry in Guangzhou revealed that this year’s real estate business is still the focus of efforts, but more cautious in the choice of counterparties, most trust companies require the choice of the top 100 real estate companies to cooperate with the cooperation, and the standard of some trust companies even will be raised to the top 50, and the real estate projects should choose the first-tier and second-tier important cities. Mini Electric Scooter Manufacturer The projects in the third- and fourth-tier cities will only cooperate with the leading companies in the industry, and the project location is better, so as to better control the entry risks.

Previously, the creditor model was the most traditional mode for trust companies to carry out real estate business. As financial supervision continued to tighten, in order to differentiate from banks, some trust companies began to explore real equity investments, in addition to obtaining interest income from creditors. The income distribution of the equity portion is also obtained by holding the equity until the end of the project.