news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

The 99-year duration is undoubtedly a hotly debated topic in the current REITs market. Which of the following can better reflect the value of REITs projects themselves and their contribution to the development of the industry: the significance of the duration of the initial REITs or the extension of the duration caused by the expansion of the fund-raising?

1. Event Review

Recently, the first REITs project "Guangfa Chengdu High-tech Investment Industrial Park REIT" managed by GF Fund was accepted by the exchange; according to the instructions in the prospectus, the fund's duration is 99 years, and the fund can extend its duration after the approval of the fund unitholders' meeting. Otherwise, the fund will terminate its operation and enter the liquidation period after the expiration of the duration; after entering the liquidation period, the fund will face the problem of disposing of infrastructure projects.

From the date of establishment of the special plan (including that day) to December 31, 2055 (including that day), in the event of special events such as new investment, extension of land use rights, extension of the duration of the infrastructure fund, etc., the special plan may be postponed or terminated early in accordance with the requirements of the qualified special plan decision, but no later than the expiration date of the public fund.

2. Duration