The Road To Property Trust Is Blocked And Developers Borrow Money From Employees.

Recently, a piece of news called "the CBRC conducted window guidance for many large trust companies, called for the suspension of real estate trusts", so that the real estate capital chain, which had already been stretched too tight, is facing a situation of worsening the situation. Insiders said that once the banks are strictly enforced, the important channel of the real estate trust product promotion and marketing will be blocked, then another "capital city" of the developers will be lost.

At the same time, a fund trust product launched by the Greentown group and Ping An Trust has been widely rumored that its guaranteed annual yield is 25%, which is also booming in the industry. Many people began to worry about the financial situation of the local real estate tycoon.

Obviously, the real estate trust has been strictly controlled. It is only a part of the real estate financing channel that is firmly stuck. Under the heavy control, developers want to survive and how to expand the financing channels.

important financing Channel blocked

Ping An Trust and the green city of China jointly built this product, called "Ping'an fortune 1 Ancheng" real estate fund trust products, the fund's launch date is June 23rd, July 22nd has been terminated, the investment period is 24 months, the trust state is not sold. Ping An Trust participates in the Greentown Wenzhou Longwan project in the form of equity investment. The annual yield is expected to reach 25%. The 25% figure is undoubtedly the most concern of the market.

For a moment, the comment on "developers are very short of money" and "under strict control of housing prices, where developers come to so many profits, belong to gambling behavior" and other commentaries. In Hangzhou, comments on Greentown capital chain were four.

In this regard, green city China executive vice chairman and executive chairman of the year of Shou Bo came out to refute the rumor, saying that this is not the lack of money in green city, and the 25% of the market's rate of guaranteed annual yield is not true. Because "Ancheng 1" is a shareholding. Investment Rather than traditional fixed income trust products, the rate of return depends entirely on market conditions. The annual yield of 25% is only based on the forecast yield of Wenzhou Longwan project, and the final benefit must be determined according to the actual market situation.

Nevertheless, under the control of green city, it is very clear that the intention of doing well in product is to get rid of the constraints of capital and reduce the risk of development. Although 25% of the revenue is not guaranteed, but since the management has such an estimate, coupled with the green city's product building capabilities and brand advantages, there will still be many people coming in. The popularity of real estate trust products in the market also shows the coincidence of developers and market funds.

According to the statistics released by the trust industry association, the balance of real estate trust assets in the first quarter of 2010 was 235 billion 129 million yuan, accounting for 10.64% of all funds trust business. In the first half of 2011, the real estate trust was experiencing a rare rapid growth, especially in the two quarter, which has been over 600 billion yuan in one fell swoop. According to the statistics of the trust industry association, the balance of real estate trust assets in the first quarter of 2011 was 486 billion 888 million yuan, accounting for 15.58% of the total capital trust business. By the two quarter, the balance of real estate fund trust has reached 605 billion 190 million yuan, accounting for 16.91%.

Financing costs are getting higher and higher.

Four big companies have stopped real estate trusts, and some High yield The rate of real estate trusts is being pursued and blocked. Various indications indicate that the financing channels for developers have been getting smaller and smaller.

Wang Weiye, executive director of the National Association of real estate managers, said that after a series of moves to raise the deposit reserve ratio, the money was tight. Even if development loans had been basically stopped, the developer's capital chain must be a problem. Even some powerful central enterprises have contracted their fronts this year to ensure the safety of the capital chain, not to mention some small and medium-sized enterprises whose capital situation is not very good.

But he also said that once the road of real estate trust was stuck, the real estate companies and securities companies might still launch new products, and avoid the risks put forward by the CBRC in the way of edge ball and product structure adjustment. He believes that there are still quite a lot of money in the market, and nowhere to go, so many funds still want to flow to the real estate industry. But no matter how to enter, developers will inevitably raise the cost of financing.

According to the Standard Chartered Bank's research report, the average interest rate of banks on real estate development loans is 8.8%. Financing through this channel has become increasingly difficult. The interest rates of trust companies and other financing institutions are between 10% and 30%, averaging 17.5%, which is about double the bank's interest rate.

And Wang Weiye believes that developers financing costs may be higher. When there is no way, many developers may even borrow money from underground banks, where interest rates are at least 50% to 60% per year. He said that many companies may not have thought about this at present, because the days have not yet been so sad. After all, it is very risky to borrow money from underground banks. In such a situation, it is almost impossible for sales to achieve such a profit.

Housing enterprises borrow funds from employees

On the other hand, it is also common for developers to raise funds to employees in various ways.

A housing company in Hangzhou has stepped up its financing to employees through the Pudong Development Bank Trust as a result of the development and construction of subordinate item company. It is understood that the starting point for financing is 1 million yuan, with no upper limit, the loan term is 2 years, the annual yield is 12%, and the debt is paid at the end of the term. As the housing market is declining, more and more companies are starting to borrow money from their employees.

A developer who did not want to be named said: "first, employees are most familiar with the company and are more trustworthy. Second, employees have spare cash, and companies must pay the same level of interest to external financing.

"Now the income is also increasing, the annual yield of 12% is not high, many are 15%, 18%, or even 20%." A person familiar with the matter said that its housing enterprises raised funds to their employees, not in the name of the company, but in the name of the boss, signing a loan contract, with an annual yield of 18% from 1 million yuan. Only internal staff raised about $200 million or more. And this year's high yield is mostly small and medium-sized housing companies with relatively tight capital chain.

According to one industry insider, in Dongyang, which is relatively densely built by building and real estate, the average annual interest rate of underground banks is at least 15%, while those with some annual interest rates of more than 50% are considered to be too risky.

Crack down on capital dilemma

At present, the overall housing market is in a doldrums, so it is difficult for buyers to wait and see. Small and medium scale housing enterprises may not be able to see as they invest in a small scale. Such enterprises will have two choices, one is to add: to increase the added value of the product, and to procrastinate to get the buffer. The second is subtraction: the capital chain of such enterprises is already very tight, and there is no hope. The hardcover housing reform blank will be sold at a low price, or simply turn the ship's bow, looking for other outlets, or even leave the real estate industry.

Banks are short of money, developers are short of money, and the three lack of money for buyers is already formed. The capital chain is the most important lifeline for developers. For developers, regulation and control will force them to sacrifice profit space for survival. In the second half of the year, prices were hard to maintain. The sale of individual property, especially the brand property, will bring the Domino effect of the market as a whole, and the trend of the property market will change accordingly.

Prudent monetary policy reduces the flow of capital into the real estate industry. However, the high interest rate brought by trust financing has increased the pressure of enterprises, and some developers have acknowledged that the capital chain is tightening. For developers, the current capital chain tension is a common problem. For developing enterprises, the most fundamental way to relieve financial pressure is, of course, to sell houses. When the house is not selling well, the most effective way is to reduce the price. Therefore, some developers are likely to obtain funds through promotional means to relieve pressure. Because they bear more than 15% of the high interest cost pressure, it is better to give up some of the profits to fight sales more directly.