It is a debt investment program that invests in non-residential real estate projects such as commerce, business, medical, automobile service, shed reform and so on. The terms of the project can be flexible and the expected returns are locked. Generally, the program is covered by mortgages, pledges and guarantees of major shareholders, which are quite reliable and yet offer relatively high yields.
Example Case: China Re- Wuhan United Plaza Commercial Real Estate Investment Program
China Re - Wuhan United Plaza Commercial Real Estate Investment Program is a commercial real estate investment program at Jiangxia District of Wuhan City and is jointly issued by China Re Asset and Wuhan United Investment & Properties Corporation. With great location and surrounding facilities, the program could generate stable returns and high safety. The program has its liability unconditionally guaranteed by the majority shareholder of the borrowing entity which is Hubei Province United Investment Group Co., Ltd, (AAA credit rating), in addition to the project company's equity pledge. Compared to similar products in the market, this program has very low risk and yet relatively high returns which reflect our professional capabilities in deal sourcing, product design and risk management. At present, the product has also achieved breakthrough in the transfer of its shares in the secondary market. Some of the product shares have been successfully transferred to new institutional investors as the underlying assets of their products, reflecting the liquidity and attractiveness of our program in the market.
Example Case: China Re-MCC Tianjin Real Estate Investment Program
The investment program is used for the debt restructuring and subsequent development of urban construction expenditure which is invested and developed by Tianjin MCC & Mingtai Real Estate Co., Ltd. The program has its liabilities unconditionally guaranteed by the listed company Metallurgical Corporation of China Ltd and the external credit rating of the program is AAA.
Example Case: China Re-MCC Hengqin Real Estate Investment Program
The underlying assets of the program are located at the key area of Hengqin Island Port in Zhuhai City. The location is superior and the location is considered as the landmark building at Hengqin Island. The structure of the program is quite simple and is guaranteed by state-owned enterprises. With sufficient credit guarantee, high credit rating and flexible maturity, the program could meet all kinds of capital demands ofdifferent investors. Furthermore, as the option structure is set in the term structure of the program, the issuer has the right to redeem after the first two years.