Abstract: Xu Yafeng said that WINS would insist on innovation in the field of asset securitization and strive to expand pure REITs business model.

《China Real Estate Finance》, Hong Jing, reporting in Shanghai

Under double pressure of regulatory impact and terminal sales, money in real estate gets tighter. Recently, many real estate enterprises make announcements intensively and development enterprises including Lujiazui, Seazen and Longfor have carried out financing from hundreds of millions to billions in Q4.

The "cold snap" of real estate market comes. What will private funds of real estate, closely relevant to the real estate market, look like? Xu Yafeng, the president of WINS Investment, said in an interview that the investment in real estate funds will tend to be active management and investment target starts to appear multiple formats as the era of stock asset operation comes.

It is known that WINS is always an equity fund centered on development investment. In recent years, it has also focused on expansion in city renewal of stock assets. Different from traditional private funds of real estates, WINS is a private equity investment institute of real estate under Gemdale Group (600383), a listed real estate enterprise and an integral part of Gemdale's "One Body and Two Wings" strategy. Relying on the platform advantage of the group and its own experience in investment finance, the Company rapidly improves project values and gets decisive winning in stock market.

Building a "growth pole" of city renewal

Xu Yafeng told the reporter that stock assets was in a relatively scattered status, and at this moment, it needed private funds, a more flexible trading ability and model. However, it didn't mean that the private funds need to reach "the take-all state by one institute or in one aspect". He emphasized that the resource integration from capital, assets and operation ability, etc., would make more use of stock assets.

Therefore, in the specific operating layer, WINS has worked "investment + agent construction" business together with Gemdale Group, and taken effective combination of Gemdale's stock-trading ability, investment and financing ability, brand influence and quality project resource of small and medium-sized developers to realize effective utilization and increment of value; in addition, it has cooperated with institutional investors in fields of financial innovation, asset acquisition and fund raising to complement each other's advantages and create a win-win situation.

Gold Master has learnt through the corporate website that WINS has established branches in Beijing, Shanghai, Shenzhen and Wuhan. It's worth noting that WINS has obtained positive progress in innovative finance, especially in asset securitization, during operating stock assets and city renewal.

The public data shows that WINS has successfully obtained and released no-objection letter of "Harvest-Gemdale No. 8 Bridge Asset-Backed Security (ABS)" approved and issued by Shanghai Stock Exchange by cooperation with Gemdale Properties & Investment and Harvest Capital in May 2017 after Gemdale Properties & Investment Group acquired Shanghai No. 8 Bridge Project in September 2016. It is understood that Shanghai No. 8 Bridge was an old plant in French Concession originally and became the location of "Shanghai Automobile Brakes" of SAIC after liberation. It is now successfully transformed into a cultural creative industry park.

Xu Yafeng said that for stock market, the real estate fund would build "dual-wheel driving" model. At first, in the early stage of project, we invested funds at a certain scale into the project through private funds and then developed, transformed and operated the project; secondly, after assets formed relatively stable cash flow, we would withdraw from capital market through asset securitization. In addition, Xu Yafeng pointed out that the advantage of issuing asset securitization product is, on the one hand, to strengthen the cash flow of stock assets to a great extent and make the asset itself a sustainable development model; on the other hand, for investors, it would realize fund withdrawal through asset securitization, which could be invested in new projects. Also, it helped investors obtain corresponding return during assets operation and value improvement, which was a "booster" of stock transformation and city renewal.

Driving transformation and update of real estate

Xu Yafeng told reporters that the successful release of Shanghai No. 8 Bridge ABS product had been widely recognized in the market. As the first "light asset" ABS product of cultural innovation park at home, "Harvest-Gemdale No. 8 Bridge ABS" has good values in business innovation and market influence, which has obtained many awards in the sector. He revealed to the reporter that WINS would continue to focus on asset securization and strive to expand pure REITs business model.

In addition to asset securization, Xu Yafeng has introduced that WINS is launching city renewal fund. He presents that as the urban development enters mature stage, the housing supply and demanding is faced with adjustment. The development business of real estate would remove to inland central cities and city renewal layout would be extended to coastal first-tier cities and key second-tier cities.

As for the form of property, WINS hope to cover more extensive scope, "Like office buildings, regional business center and long-term rental apartments with potential of value improvement, etc., even non-performing assets would be involved." He said.

When speaking the future development of real estate market, Xu Yafeng stated that the industrial risk and opportunities were always side-by-side. He judged that the holding assets of stock market would have opportunities of re-valuation in two to three years. For the future valuation of holding assets, its pricing by capital market would reverse the current earning value of the assets and then price the assets. At the same time, he explained to the reporter, "on the one hand, the strategic adjustment with industry transfer and new business such as office update, business, rental apartment and asset securitization in the stock era will develop into a new stage; on the other hand, ABS products will ensure enterprises to form large-scale platform effect relying on building scale of asset equities, which will form a complementation of capital operation model with traditional capital operation model instead of only relying on debts."

As a manager of real estate private funds with rich experience and professional ability, Xu Yafeng presented that WINS was able to get through traditional real estate private funds and asset securitization product model to provide investors with different investment demands more diversified products and then guarantee efficient capital operation of assets in different stages. There would be a more diversified and more open era for real estate market.