china everbright limited’s eba investments launches second phase of shelf registration reits
eba investments, being the exclusive real estate investment platform of china everbright limited (“everbright”, stock code: 165.hk), has successfully launched the second tranche of eba investments’ commercial real estate shelf-registration reit-like product (“the cre shelf-registration product”), the total size of which is 10 billion and is regarded as china’s first-of-its-kind shelf registration reit-like product. the second launching trache, called “ebam-eba investments commercial real estates 2-x-guanyinqiao imix park reit-like product ”(“eba cre 2-x gyq imix”), is sized rmb2.9 billion and structured as grade a (rmb1.5 billion with aaa rating ) senior units, grade b (rmb430 million with aa rating) senior units plus equity units (rmb970 million). the product is termed as “3 3 1”, namely three years of fixed operational period plus three years of potential extension of operational period plus one year of disposal period.
the first lauching trache of the cre shelf-registration product, being“ebam-eba investments commercial real estate 1-x-jing’an imix park reit-like product”, was launched earlier this year in may and was sized rmb4.3 billion and structured as grade a, grade b, grade c and grade d senior units plus equity units. the interest rate of the grade a and grade b senior units were at that time competitively bid out at 4.58% and 5.18% respectively.
developed upon the same underlying property (i.e. the guanyinqiao imix park), the eba cre 2-x gyq imix is establised to suceed the “ebp-eba imix park asset-backed scheme” (“imix park abs”) launched by eba investments back in 2016. this successful succesion marks china’s first successive launching of an equity reit-like product, that is, establishing a new reit-like product to suceed an existing reit-like product by transacting the underlying asset. it also represents another breakthrough of financial innovation created by eba investments, a leading figure in china's real estate asset management industry and desmonstrates an exemmplary divestment pattern for various types of equity reit-like product given the absence of authentic reits in china.
guanyinqiao imix park in chongqing
as the product’s fund manager and asset manager, eba investments team stays true to their original aspirations and devotes to the mission of continuously enhancing the intrinsic value of real estates and maximizing investors’ interest. guanyinqiao imix park, being the underlying property of eba cre 2-x gyq imix, was originally acquired in 2009 by a private equity fund managed by eba investments. it emerged on capital market in 2016 through the forementioned imix park abs, a product impressed the market by its uniquely integrative and pioneering "pere reits" model. during the course of three-year term of imix park abs, the results of guanyinqiao imix park’s annual gross income and net operating income consecutively beat the expected numbers in the finanical model of imix park abs at its initial launching. according to the “national ranking of foot traffic in shopping malls for the first half of 2019” jointly published in july 2019 by winshang data and china urban commercial research institute, guanyinqiao imix park ranked in the top three amongst 3,745 open shopping centers nationwide – a solid reflection of customers’ confidence and recognition.
going forward, eba investments team will continue to dedicate themselvs to safeguarding the interests of investors by leveraging their professional competence and extensive exposure in real estate investment and asset management industry. meanwhile, it is also believed that the subsequent launching trache of cre shelf-registration product will keep bringing innovative examples to the capital market to be as a sincere welcome of the emergence of china’s authentic reits product in future.
