Welcome to my “How do commercial leases work.”
A shopping center is not difficult to build, difficult in its follow-up management, which is the heart of the commercial real estate.
Leasing model specific again
Divided into retail property ownership of the overall leasing, retail tenant tenancy and the overall ownership of the three leases.
A shopping center built
Not hard to come by, difficult in its follow-up management, which is also the core of commercial real estate.
First, the leasing of the three modes
Now consumers are not satisfied with shopping, but rather multi-level shopping. Data show that at present
China shopping mall under construction ranks first in the world. In order to meet the needs of diverse customers, traditional department stores gradually
Transform to shopping malls covering department stores, supermarkets, and entertainment. Many old department stores are also repositioning "shopping
Heart-style department store "to adjust the upgrade.Shopping area will be a certain area of the shop or counter rental and the actual users, shopping malls
The actual use of rental income, shops or counters is responsible for operating, access to operating income, bear the business risk. In addition,
Can also be entrusted management company for management.
The overall leasing of commercial property is also known as
"Management Shop"
Its fundamental feature is the developer of retail sales property recycling
Funding, through up to
Fixed-rate, interest-based return on rent-back, the right to operate from the hands of investors, however
After commissioned by a professional business management company for property management and operation, access to rent, return investors. Because by specialist
Industry companies on behalf of management, investors get long-term return of rent-return, hence the name "managed shops"
"Managed shops" is a new shopping mall development model, the fundamental feature is the developer of retail sales property recycling
Funding, through up to
10-20
Fixed-rate, interest-based return on leaseback, the right to operate from the hands of investors, however
After commissioned by a professional business management company for property management and operation, access to rent, return investors. Such as Sheng Sheng Cao
four-lane city shopping park project,
That is, in the context of the sale of funds returned from the sale,
At the same time use
"Unite Merchants"
A typical case of strategy.
1.
Suitable for property type
This is a high-yield, low-risk mode of operation for large, enclosed shopping centers. From the specific project to operate
Look, through the demolition of zero property rights, Wang Pu sales huge sums of money, greatly easing the developer's financial problems. and
Recycling shop management owned by professional companies unified management, then further enhance the confidence of small and medium investors, and promote
Shop sales.
In the specific operation, win the Guangzhou Baiyun Yun disk
Green space
Center, Hunchun Brown Shing Shopping Park, and other projects are adopted
Take the ownership, management rights, the right to use the separation of the three modes: In order to improve market acceptance, the shopping center property is zoned to zero,
be divided into
30-100
Small square meters of property sales to recycle a lot of money.
Then return from the purchase by renting the method of renting
the hands of the business to retrieve the right to shop,
Its annual rate of return is set at 8%
about
(Interest rate above bank lending is attractive
force)
This ownership belongs to investors,
The franchise is controlled by a professional business management company,
Admission business owners own property
Right to use, to achieve the separation of powers. In the context of unified management, the maximum realization of the overall business price of commercial property
Value, at the same time, make the building monomer to obtain the maximum value and rent growth space.
2.
Advantage
From a business management point of view, the management of shops similar to the overall self-employed large shopping malls and professional markets, and along the street alone
There is a big difference between a commercial building with retail outlets or a retailing retail market, which is conducive to competition with independent shops along the street:
In the meantime, the financial leasing business has enjoyed rapid development. Compared with the traditional bank credit business, the financial leasing business has less loss of principal, low risk and stable earnings. It has also made improvements in equipment and technology upgrades in asset management and service enterprises' going global and emerging industries All have the positive meaning.
Under this background, commercial banks should appropriately increase the asset allocation of financial leasing, give play to the advantages of financial leasing business in industrial background and risk disposal, and promote the transformation of some credit business and risk management by financial leasing business and improve the financial leasing business The Contribution of Commercial Banks to the Transformation and Risk Control.
Due to the further marketization of interest rates, the increasingly stringent regulatory policies, the scarcity of asset allocation and the increasing credit risk, the profit growth of commercial banks continued to decline and the business transformation was imminent. The financial leasing business has many functions such as serving the real economy, promoting the industrial restructuring and promoting financial innovation. In September 2015, the State Council issued the Guiding Opinions of the General Office of the State Council on Promoting the Healthy Development of the Financial Leasing Industry (Guo Ban Fa [2015] No. 69). In order to give full play to the characteristics and advantages of leasing business and integrate into the parent bank credit business segment and improve the asset quality of the Group, this article explores the relevant issues in commercial leasing business to promote business transformation and reduce credit risk.
In recent years, the financial leasing industry in our country has been developing rapidly with great potential for development. Since the pilot project of setting up a financial leasing company by commercial banks was started in 2007, the financial leasing industry has enjoyed rapid development and the overall scale also ushered in rapid growth. According to the data released by China Banking Regulatory Commission, as of the end of 2015, there were 47 financial leasing companies with 1.63 trillion yuan of assets in the industry, an increase of several tenfold over the end of 2007 and an average CAGR of over 40% in the past five years. In the course of its development, its operation and management are also gradually regulated, and its asset quality and profitability are stable. By the end of 2015, the non-performing asset ratio of the industry was only 0.72%.
With the rapid expansion of scale and continuous improvement of overall strength, the business innovation in the financial leasing industry is also very active. Financial leasing assets cover a wide range of industries and fields ranging from aircraft, ships and rail transit to large-scale production equipment such as electricity, minerals and energy, as well as construction machinery, printing and medical equipment. As of the end of 2015, the total amount of paid-up capital in the financial leasing industry reached 128.955 billion yuan, with a total profit of 23.443 billion yuan and a great deal of business innovation in such areas as cross-border leasing of SPV, operating leasing, overseas debt issuance and asset securitization.
The financial leasing business is gradually becoming a new force in the financial field by virtue of its characteristics and advantages in serving the real economy and financial innovation. Although the financial leasing industry has witnessed rapid development in recent years, its scale and profit are still relatively small compared to the huge domestic financial and banking system and the market is far from fully tapped. At present, the leasing penetration rate in China (leasing business accounts for about 6% of the total investment in fixed assets) is still a big gap compared with the proportion of 20% -30% in developed countries. Therefore, the market for financial leasing business has broad prospects and there is still room for greater development.
Financial leasing business and credit business have some of the same attributes. The financial leasing business is essentially a kind of financial behavior. The modern financial leasing business is a financial business developed on the basis of the traditional financial business to finance the settlement of financial assets, which has certain similarities and complementarities with the traditional bank credit. From the business characteristics of view, the dominant position of the financial leasing business and commercial bank credit business are more similar, both to provide funds to the enterprise and charge a certain amount of interest. The financing structure of leasing mainly focuses on financing and its business model is similar to that of a bank's fixed assets loan. Leasing business leverages its advantages of no principal risk credit and long-term stability of earnings, which supplement corporate lending beyond credit business. From the business process, there is a certain similarity between the two. As a new financing method, financial leasing business extends the service areas and means of commercial banks and forms an overall competitive edge with other bank products. In the course of serving the real economy, the operating experience and business advantages between the financial leasing business and the traditional credit business can be more easily grafted onto each other, and the coordinated development can be achieved through cooperation in various fields.
Second, the financial leasing business and credit business have an alternative and complementary relationship. Although financial leasing business and bank credit business belong to two different financing tools, they all belong to a fixed contractual business and play an important role in solving the corporate financing problem. Enterprises in the financing options in the process of financial leasing and traditional credit trade-off choice. Marton and Harris found that there is an alternative relationship between the corporate debt ratio and the leasing ratio in the reverse relationship. A Yan also verified the alternative relationship between the two and obtained the alternative relationship between financial leasing and traditional credit by establishing MM model. In addition, a large number of studies have shown that there is a complementary relationship between leasing and traditional credit facilities. Ang and Pamela validate the relationship between the two by defining alternative ratios of traditional credit to leasing and conclude the research on the relationship between leasing and traditional credit through the test of 600 enterprise data. In particular industries such as aviation, research data indicate that leasing has a complementary relationship with traditional credit.
(B) the financial leasing business is conducive to improve the ability of commercial banks to serve the real economy
At present, our country is at a crucial stage of economic structural adjustment, excess capacity elimination and the search for a new economic growth point, which sets higher requirements on the ways, quality and benefits of financial services for the real economy. Financial Leasing Every business supports the real economy in the form of leasing. It is the most direct and direct way of financing the real economy and has become an important part of the financial system.
First, enriching the financing channels is conducive to enhancing the ability of commercial banks to serve the real economy. Judging from the overseas development situation, financial leasing has played an accelerator and lubricant role in the process of economic industrialization and modernization in the developed countries. Under the new normal economy, financial leasing has the special advantage of promoting the transformation and upgrading of the economic structure. Financial leasing business and manufacturing industry in-depth integration can promote technological upgrading and transformation of enterprises, accelerate the transformation of corporate profitability innovation. By giving full play to its financial leverage, it has been a strong boost to supply-side reform. In particular, under the downward pressure on China's economic operation, some enterprises are very difficult to produce and manage their products. Financial leasing can effectively revitalize the stock of enterprises, improve the liquidity of enterprises, optimize the financial structure of enterprises, and enhance the ability of corporate finance and equipment upgrading and be upgrading Business risk resistance.
Second, it is conducive to raising the financial service capacity for SMEs. Financial leasing business plays an important role in supporting the financing of small and micro enterprises. The small and micro enterprises in the growth stage have strong demand for operating funds and equipment. However, small and micro enterprises are often the focus of prevention and control of credit risk in traditional banks because of their small scale, large operating fluctuations, weak anti-risk capability and high credit risk. However, the financial leasing business not only effectively solves the financing needs of small and micro enterprises, but also reduces the credit risk by taking advantage of the core real right of the operation and management of commercial banks. In fact, the financial leasing business has been well established in Bangladesh and Pakistan as a means of supporting small and micro enterprises and has been widely promoted in places such as Indonesia and the Philippines.
(III) Financial Leasing Business plays an Important Role in Promoting Financial Innovation and Improving Comprehensive Service Capabilities of Commercial Banks
First, it will help improve the cross-border and cross-market operation of commercial banks and promote financial innovation. Financial leasing institutions can promote innovative businesses such as debt issuance, transfer of financial leasing assets and asset securitization through multi-level cooperation with banks, trusts, insurance, funds, and asset management institutions and other financial institutions to promote commercial banks' cross-market and cross-business operations Collaboration and innovation in financial products and financing services. With the internationalization of airlines leasing business and the acceleration of the export of high-speed rail and nuclear power industries, cross-border leasing business provides new financial support for exploring international capacity cooperation and achieving mutual benefits, which will help improve the financial leasing companies The competitiveness of international and domestic markets, but also for the development of the entire financial sector has provided a broad market space.
Second, it is conducive to enhancing the comprehensive service capabilities of commercial banking groups. Financial leasing assets are high-quality investment targets with stable rental income and the best link between financial market and the real economy. The development of financial leasing business will help the Group to continue optimizing the asset business structure and open up new profit growth points through financial assets and asset management. At the same time, as an important platform for financial conglomerates to implement the integrated operation, financial leasing can bring a lot of customer resources and business opportunities to the Group and enhance the overall profitability of the Group. More importantly, after the rapid development in recent years, financial leasing companies actively carry out business and product innovation to expand the depth and breadth of financial services, which will help increase the comprehensive financial services of commercial banking groups and meet the diversified market demands.
(IV) The Financial Leasing Business Has Relative Advantages in Reducing the Bank's Credit Risk Financial leasing business is based on real assets. It is the most direct and direct way of financing with the real economy. Compared with the traditional bank credit business, the financial leasing business has unique advantages in risk protection.
First, the financial leasing business has the unique advantages of disposing of risky assets. From an economic point of view, because the financial leasing business has the dual attributes of financing and financing, the lessor can effectively prevent the lessee from abusing the moral hazard of funds by using the professional attribute of the leasing subject matter and can reduce the agent that limits the lessee's behavior cost. Once the lessee is at risk, the bankruptcy cost of the leasing contract is much lower for the lessor than the bankruptcy cost of the traditional credit contract for the creditor. First, if the lessee defaults, the lessor can hold the asset with the lowest legal cost to avoid the loss. Second, in the event of a risk, the lessor has a preemptive right to recover the leased property, which is riskier than the bank credit business that only owns the mortgage and the security right, due to the more operational risk mitigation and resolution of the leased property Protection. Third, once the business enters the bankruptcy liquidation phase, the lessor can avoid the cost of pre-bankruptcy by virtue of ownership of the leased equipment. Under the current circumstances that banks are exposed to more credit risks, commercial banks will allocate part of the assets to the financial leasing business, which will help reduce the risk of the portfolio.
Second, the operating principle of the leasing business has a small loss, low risk, and stable income. The operating leasing business has full ownership of the property and has the advantage of long-term and stable income. It has the unparalleled advantages of bank credit in reducing the operating risk. Operating leasing is based on standard products such as aircraft and ships (and related equipment). Leasing companies can reduce the acquisition cost of assets by virtue of their professional advantages and bulk purchasing during the purchase of the subject goods. In the long period of business process, Based on the ownership of property and leased value of the grasp, you can largely reduce the probability of principal loss, and continue to receive a stable rental income. In addition, the subject matter of operating leased assets are generally bulk assets such as aircraft and vessels. They not only have strong operational functions and good value-added and hedging but also effectively resist fluctuations in interest rates and are conducive to the sustainability of the profitability of leased assets At the same time, in the process of cross-border operation, the transaction is dominated by the U.S. dollar. By using tools such as the US dollar swap, the cost of financing can be basically locked in order to avoid exchange rate risk.
Third, the current development of the main problems facing the financial leasing business
The financial leasing industry in our country started relatively late. Although it has a good development trend at present, it still faces many external obstacles such as the unsound legal system and some problems of the financial leasing institution itself compared with mature markets in other countries.
First, the legal environment is still not perfect: the existing legal system in our country lacks the registration and publicity system of leased property and lacks protection for the leased property rights. When the lessee defaults, the leased property cannot play the role of "fighting the goodwill third party" Role. At the same time, in terms of leasing objects, the lack of lease conditions, procedures, retrieval methods and other supporting provisions. In addition, the law also applies to the lessor's special qualifications requirements of lessors, greatly hurting the enthusiasm of the leasing company to carry out related businesses. Judging from the mature markets in the world, no matter whether it is the leasehold property or the leasehold right, there is a clear stipulation in the relevant laws. And because of its separation of ownership and usufruct of the lease items in the finance lease business, there is also no problem of the special qualifications imposed on the lessors by the lessee.
Second, the regulatory policy lacks a unified standard: the financial leasing company's source of funds to bank short-term loans, compared to banks and other financial institutions, financing channels are more single. At the same time, commercial banks have a 100% weighting on loan risk weights for financial leasing companies, compared with 25% for commercial banks, which greatly increases the cost of capital for financial leasing companies. In addition, the supplementary capital of financial leasing companies mainly relies on their own profit retention and shareholders' capital increase. Compared with multi-channel capital supplement forms of financial institutions such as banks, the financial leasing companies have a single channel of capital replenishment and lack of supplementary capital instruments such as subordinated bonds.
Thirdly, the liquidity management methods of financial leasing companies are limited. At present, the financial leasing business mainly focuses on mid-term and long-term business, but most of the sources of funds are short-term bank loans with poor stability. As the scale of assets and liabilities and the total amount of financing continue to increase, such liabilities are dominated by short-term ones and medium-long-term business models tend to result in mismatches in the maturity structure of assets and liabilities, resulting in liquidity tensions and liquidity management Increasing difficulty.
Fourth, financial leasing companies have weak operational capacity: lack of cooperation with financial institutions such as banks. At present, domestic financial leasing companies are in the initial stage of development, and their scale of development in the industry is small. Their innovation ability in management mode and their capital operation ability are generally low, which greatly limit the advantages of the financial leasing business. Especially in the situation of imperfect supporting policies of financial leasing and lack of qualified personnel, the innovative lack of financial leasing products makes it difficult for financial leasing companies to meet diversified financial needs. In addition, the financial leasing companies are often limited to the enterprise itself, the lack of extension of the industrial chain and the synergies with other financial institutions such as banks, which also largely restricts the financial leasing business service entities to play an economic role.
Fourth, commercial banks related to the development of financial leasing business proposals
Under the background of the current economic downturn, the high credit risk of commercial banks and the rise of debt evasion behavior, commercial banks should support the accelerated development of financial leasing business and allocate more assets to leasing business, so as to maximize the development of leasing business in the industrial background Risk management and risk management, and promoted the transformation of credit and risk management with financial leasing business to enhance the contribution of financial leasing business to the transformation and development of commercial banks.
(I) Actively communicate with the regulatory authorities and improve the development environment of the industry in various aspects To promote the healthy and rapid development of the financial leasing industry and further bring into play its regulatory role against the economic cycle, commercial banks should actively communicate with the regulatory authorities and promote cooperation with the guidance of the State Council Supporting the various policies and rules landed.
First, it called for improving relevant laws and regulations and strengthening government support. It is recommended that government departments be called upon to establish as soon as possible a legally binding lease registration system. Establish a unified and authoritative financial leasing asset publicity registration platform and actively coordinate and strive for the platform to obtain the status of legal authorization so as to ensure the security of leased asset transactions and to prevent publicity of rights conflicts and at the same time guide the industry to standardize its operation and legal compliance management, Future leasing assets transactions and lay a solid foundation.
The second is to urge the promotion of multi-channel financing policies as soon as possible and reduce the financing costs. It is suggested that the state finance and taxation departments should improve the relevant provisions on the business of securitization and transfer of leased assets and allow the financial leasing companies to continue to invoice the lessee after the transfer of assets and deduct the sales cost when transferring the tax cost so as to reduce the cost of securitization and encourage Asset securitization and other channels to raise funds to reduce the cost of capital. At the same time, taking into account the financial properties of financial leasing companies and the active role of serving the real economy, it is suggested that the regulatory authorities appropriately reduce the proportion of the risk weights of commercial banks lending to financial leasing companies from the current 100%, and guide the banks to increase their loan support Efforts to reduce financing costs.
Third, it called for relaxing the regulatory constraints and broadening the channels of capital replenishment. In order to promote the healthy and rapid development of the financial leasing industry, it is suggested that the implementation of the regulatory policy be different from the regulatory requirements of the capital adequacy ratio of commercial banks, the minimum capital adequacy ratio of financial leasing companies should be kept at 8%, and the capital vitality of financial leasing companies should be released. Recommendations regulatory authorities as soon as possible on the issuance of financial leasing companies subordinated debt, insurance funds to invest in financial leasing assets and other aspects of the implementation details to guide the financial leasing companies to use market-oriented means of multi-channel replenishment of capital.
(II) Strengthen synergic development of the Group and promote the transformation of credit business and risk management by leasing
The first is to strengthen the synergies of the Group's business segments, improve asset management efficiency and better control risks. As financial leasing and bank lending have their own advantages, for customers who have both credit demand and finance leasing demand, the financial leasing subsidiary should strengthen collaboration with the parent bank to cooperate with each other to develop the industrial chain and work together to create an ecological platform for financial services for customers. For some credit businesses that are limited but of good quality, the parent bank can work with financial leasing subsidiaries in a non-recourse financing leasing factoring mode of operation. With the platform advantages of financial leasing companies, it provides business opportunities for parent banks and enhances the overall asset efficiency of the Group. In doing so, it will not only improve the efficiency of bank capital utilization but also expand the scale of trade financing. As the parties involved in the finance leasing open the supervision account with the parent bank, to a certain extent, it is also able to circumvent the risk of misappropriation of the loan. At the same time, the separation of ownership and use rights of the finance lease equipment helps to strengthen the overall risk control of the business. For financial leasing companies, under the situation of narrow financing channels and high financing costs, the receivables are sold to the parent bank. While earning fee income, they can both revitalize their accounts receivable and speed up cash flow Return, but also can achieve off-balance sheet financing.
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