Developer Money tight emergency rescue real Estate Trust

The first half of the 35 billion Yuan trust financing over last year, our correspondent Wang Haichun Shanghai Report regulation and control policy tightening, house prices deadlocked at the time of sales close to frozen, ready to need a lot of money turnover developers into the June real feel "money tight."　　"Huaxia Times," the reporter found in the interview, developers in the sale of stocks through the rapid return of funds hopeless background, is seeking other ways to solve the urgent, which is the most favored real estate trust. The reporter learned that the Jiangsu New Town Real Estate Company (hereinafter referred to as the Jiangsu Xincheng) announced on June 28, the company will plan through the real Estate trust way of financing 700 million yuan, to solve the Shanghai project follow-up funding problems.　　This is obviously not a case. On the third day of the trust financing in the new town of Jiangsu, it is said that the plan is to finance 1 billion yuan by the real estate Trust method.　　It is understood that only 4 May, the whole country for the collection of real estate trust funds more than 19.4 billion yuan, and the first half of the year the National Real Estate Trust financing products more than 140 more than 35 billion yuan, has been close to 2009 the annual circulation of 181, the scale has exceeded.　　The two-month trust financing super billion "money tight" developers are looking for every opportunity to ease the financial pressure facing the company.　　June 28, Jiangsu Xincheng Real Estate Company issued a notice, said the company will be in good faith with the project to raise funds in the way of investment not more than 700 million yuan, for the Shanghai jiading New Town, the new city of the Anting Real Estate Co., Ltd. belongs to the project construction. "700 million yuan real estate trust, the scale is quite big."　　"Puyi Investment Limited researcher Zhao Yang to this reporter pointed out that the general real estate Trust scale of only 100 million-200 million." "The company's financial position is related to the current debt rate of up to 84.24%."　　Founder Securities researcher Zhouwei pointed out. Jiangsu Xincheng 2009 reported that the company's total assets of 13.067 billion, but the debt is as high as 10.697 billion yuan. Zhouwei told reporters that although the company's short-term debt is only 1.1 billion, but lack of follow-up project funding.　　And the current dilemma is very much related to the company's rapid expansion last year. Reporter in the interview learned that, due to the rapid expansion of the company in 2009, in Shanghai, Nanjing, Changzhou and other land to spend a large amount of 5.4 billion of the money.　　At present, more than 10 projects are under construction, also need to spend a lot of money, the first quarter of this year, the company's various operating expenses to reach 1.7 billion. Zhouwei said that if the projects under construction continue to develop according to the original plan, the company's funds will be raised higher requirements.　　Even if the construction is completed, in the current housing market is not optimistic, the future sales of funds is also a big problem.　　Reporter survey found that the project development in the lack of money developers more than one, want to through real estate trust financing developers more than a few. June 18, Fuxing shares announced that through the Equity trust financing way to raise funds 1 billion yuan for project development. June 30 on the real development of the announcement that will be through the trust of loans in the way with the trust in the credit contract signed, trust loan amount of 10Billion Yuan.　　July 1, the first real estate said the trust will be financed 750 million yuan.　　A person from Chinese enterprises told our correspondent that although some funds were merged through the capital market last year, the development still needed to inject a lot of money, so they also chose the way of real estate trusts to do project financing. "Last year's massive expansion, and then the first half of the sales slump, some housing companies this year is indeed the development of funds more nervous." Ding Zu, executive director of the Sino-housing letter said that the developer's funds are not yet the most tense, but if the second half of the sales do not smooth, these hands have a large number of projects under construction will face considerable pressure.　　In order to get funding for project construction, developers have to find their own financing channels.　　It is the lack of some development funds that has urged the real estate trust.　　According to Puyi Investment Co., Ltd., May issued a total of 104 trust products, and the same month issued a collection of real estate trusts have 25, through the real Estate Trust raised funds up to 5.8 billion yuan. "There are 33 new real estate trusts in June, and real estate financing is over 6 billion."　　Zhao Yang told reporters that from the current housing companies and trust companies signed cooperation agreement, the next two months is expected to be the real estate Trust will hit a record high.　　The developer's frustration is unable to find cash flow of the developers seem to see a piece of fat, even if the taste is poor, also want to take to eat. "The annual interest rate we raise by trust is generally around 10%-12%, which is the highest cost we can afford," he said.　　"Jiangsu Xincheng Securities Representative Wang Guoning told the Huaxia Times" reporter. Zhao Yang pointed out that the real Estate Trust issued a higher cost, in general, developers are unwilling to trust through the financing.　　Now real Estate Collection Trust products average annual interest rate of more than 10%, some real estate trust annual interest rate of up to 20%. But even with such high costs, the city of Jiangsu is not the first time this year to raise funds through trusts. This April, the Jiangsu New Town in Wuxi and Changzhou subsidiary, to the National Yuan Trust loan 350 million yuan, 250 million yuan, the period is 1 years.　　In just two months, the city of Jiangsu through trust financing 1.6 billion.　　Developers will be at the cost of trust to finance, there is a bitter word. "The project develops to half, just lacks the fund, cannot let the real estate stop in half?" It is not easy to continue to get a loan from a bank, and there is a need to find ways to keep the project going. Wang Guoning said that at present the bank to developers to provide development loans, the annual interest rate of more than 7%, the key is that the bank's taps too tight.　　In this case, have to choose the annual interest rate of about 10% of the real Estate Trust to finance.　　In fact, compared with the real estate Trust risk, when the developer "money tight" to a certain extent, even will choose a greater risk, such as trying to borrow from the private sector. A Wenzhou investor in Shanghai told Huaxia Times that developers have a certain "market" for short-term financing by private lending: borrowLoan period ranging from one months to half a year, monthly 2%-3%. "There is a special informant to raise funds, and among the fund-raising people are acquaintances, raise the scale of about million yuan." If the loan period is one year, the annual coupon is at least 20%.　　"The investor told reporters that most of the folk usury through the local acquaintance of the relationship from Zhejiang, Fujian, each month to the borrower to issue interest, loan period after the end of the principal return. Although private lending has such high interest rates, it is not easy to get long-term funding. "It is more difficult to raise money for more than one year. Some people are not optimistic about the next year's real estate, do not want to put money on the housing enterprises too long. If the situation has not improved, once the developer's project Rotten tail, the money they invested may not even get the principal back, let alone interest.　　"Investors are reluctant to lend money too long," said the investors. In this contrast, the potential to play with fire to choose real Estate Trust financing developers, seems to have no better choice.