REITs Analysis of Industrial Parks—Take CCB Zhongguancun Industrial Park REIT for Example

Research Article
Open access

REITs Analysis of Industrial Parks—Take CCB Zhongguancun Industrial Park REIT for Example

Shuyu Wang 1*
  • 1 University of Southern California    
  • *corresponding author hahazuiniu@gmail.com
Published on 13 September 2023 | https://doi.org/10.54254/2754-1169/18/20230082
AEMPS Vol.18
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-79-9
ISBN (Online): 978-1-915371-80-5

Abstract

In 2021, China's public offering infrastructure REITs officially set sail. The 21 public offering REITs products and projects that have been issued have excellent qualifications and are popular among institutional and individual investors, laying a solid foundation for the healthy development of the subsequent REITs market. Industrial parks usually have the advantages of clear property rights, stable income and value-added potential, and are an important part of the infrastructure REITs pilot. This paper reviews the market performance and typical characteristics of industrial park REITs since establishment, and, on this basis, analyzes the valuation methods applicable to industrial park REITs. Taking CCB Zhongguancun REIT as an example, starting from the location and operating status of the underlying assets and through the fundamental comparison of similar projects and P/FFO valuation, the research concluded that the market valuation of the project was at a high level in the industry and reached the average valuation level of industrial REITs in the United States, the good operating performance supported its market valuation. Finally, the future growth potential, operation management, and investment prospects of the industrial park REITs are prospected.

Keywords:

industrial park REITs, Zhongguancun industrial park, valuation and pricing, P/FFO

Wang,S. (2023). REITs Analysis of Industrial Parks—Take CCB Zhongguancun Industrial Park REIT for Example. Advances in Economics, Management and Political Sciences,18,269-283.
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References

[1]. Wu Changhai. (2021). Research on Information Disclosure Responsibility Allocation System of public offering REITs. Fiscal science, 66, 60-61.

[2]. Wang kai,Dong Dezhi. (2022). Overseas REITs development experience: Rules and lessons. International finance,2022(6), 37-38.

[3]. Lin Hua. (2022). Chinese Public Offering REITs Operation Manual. 36-39.

[4]. Gao Guohua. (2022). Steady Start to Ride the wind -- Review of public Offering REITs in 2021 and Outlook in 2022. Journal of Bonds, 12-14.

[5]. Cheng Dan. (2022). Analysis of the application of REITs in industrial parks. Jiangxi University of Finance and Economics, 6, 12-15.

[6]. Chen Qihao. (2022). Based on FFO discount method, this paper studies the REITs pricing of the underlying assets for the industrial park . Shanghai Normal University, 14-15.

[7]. Guo Xu. (2022). Construction of cooperative operation mode of Industrial investment and industrial incubation -- A case study of Zhongguancun Software Park. Technology and industry, 22, 106-108.

[8]. Zhang Jiahe. (2022). Valuation of public offering REITs based on income method. Zhejiang University of Finance and Economics, 12, 19-20.

[9]. Li Tingting. (2022). Analysis on the underlying asset evaluation method of infrastructure public offering REITs. Architectural economics, 42, 106-108.

[10]. CCB Fund Management Co., LTD. CCB Zhongguancun REIT Recruitment prospectus (2021). Online: http://www.sse.com.cn/reits/info/index_detail.shtml?audit_id=18465.

[11]. Li Wenzheng. (2022). Pricing of infrastructure REITs. Chinese finance, 14, 58-59.

[12]. He Tianxiang. (2022). Research on Valuation Optimization of infrastructure Public Offering REITs. East China Normal University, 5, 14-16.

[13]. Data source, National Association of Real Estate Investment Trusts, Online: https://www.reit.com/data-research, website of

Cite this article

Wang,S. (2023). REITs Analysis of Industrial Parks—Take CCB Zhongguancun Industrial Park REIT for Example. Advances in Economics, Management and Political Sciences,18,269-283.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 2023 International Conference on Management Research and Economic Development

ISBN：978-1-915371-79-9(Print) / 978-1-915371-80-5(Online)
Editor：Canh Thien Dang, Javier Cifuentes-Faura
Conference website: https://2023.icmred.org/
Conference date: 28 April 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.18
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Wu Changhai. (2021). Research on Information Disclosure Responsibility Allocation System of public offering REITs. Fiscal science, 66, 60-61.

[2]. Wang kai,Dong Dezhi. (2022). Overseas REITs development experience: Rules and lessons. International finance,2022(6), 37-38.

[3]. Lin Hua. (2022). Chinese Public Offering REITs Operation Manual. 36-39.

[4]. Gao Guohua. (2022). Steady Start to Ride the wind -- Review of public Offering REITs in 2021 and Outlook in 2022. Journal of Bonds, 12-14.

[5]. Cheng Dan. (2022). Analysis of the application of REITs in industrial parks. Jiangxi University of Finance and Economics, 6, 12-15.

[6]. Chen Qihao. (2022). Based on FFO discount method, this paper studies the REITs pricing of the underlying assets for the industrial park . Shanghai Normal University, 14-15.

[7]. Guo Xu. (2022). Construction of cooperative operation mode of Industrial investment and industrial incubation -- A case study of Zhongguancun Software Park. Technology and industry, 22, 106-108.

[8]. Zhang Jiahe. (2022). Valuation of public offering REITs based on income method. Zhejiang University of Finance and Economics, 12, 19-20.

[9]. Li Tingting. (2022). Analysis on the underlying asset evaluation method of infrastructure public offering REITs. Architectural economics, 42, 106-108.

[10]. CCB Fund Management Co., LTD. CCB Zhongguancun REIT Recruitment prospectus (2021). Online: http://www.sse.com.cn/reits/info/index_detail.shtml?audit_id=18465.

[11]. Li Wenzheng. (2022). Pricing of infrastructure REITs. Chinese finance, 14, 58-59.

[12]. He Tianxiang. (2022). Research on Valuation Optimization of infrastructure Public Offering REITs. East China Normal University, 5, 14-16.

[13]. Data source, National Association of Real Estate Investment Trusts, Online: https://www.reit.com/data-research, website of

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