As an innovative product among public REITs, consumer infrastructure REITs have always attracted much attention from the market. Recently, another new product has been approved. On June 28, ChinaAMC Capital Outlets Closed-end Infrastructure Securities Investment Fund (hereinafter referred to as "ChinaAMC Capital Outlets REIT") officially obtained the approval of the China Securities Regulatory Commission for registration and obtained a no-objection letter from the Shanghai Stock Exchange. ChinaAMC's first outlet REIT is the first consumer infrastructure REITs in China with outlet projects as the underlying asset, which not only adds new members, but also further enriches the asset types.
BCCD's application for consumption infrastructure REITs with its high-quality outlets, Jinan Capital Outlets Project and Wuhan Capital Outlets as the underlying assets, is not only an important measure to actively fulfill the responsibilities of state-owned enterprises in the capital and implement the country's decision-making and deployment of "giving priority to the recovery and expansion of consumption", but also will help the company open up the whole chain of "investment, financing, management and withdrawal" of commercial heavy assets, revitalize existing assets, optimize capital structure, and help enterprises enter a virtuous cycle.
The value is promising, and the first outlet consumer REITs
OUTLETS, also known as "brand outlet shopping malls", is one of the world's mainstream and mature commercial formats. Since the opening of China's first outlet in 2002, after more than 20 years of development, the outlet format has become an important subdivision of China's retail industry, with the characteristics of "famous products + discount + experience" to create a "cost-effective model", to achieve differentiated competition with other retail formats, and deeply meet the core life demands of the people from "material and cultural needs" to "better life needs".
Located in the core area of the eastern new city of Jinan, the first outlet project in Jinan opened in January 2019 and has ranked first in the Jinan outlet market for five consecutive years in terms of sales since its opening. The Tangye area, where the project is located, is planned as the regional center, cultural and creative industry center and emerging industry carrier in the eastern urban area of Jinan. The building form of the project is a three-storey open block on the ground, with a construction area of 116,000 square meters and a rentable area of 52,000 square meters, settled in more than 200 international and domestic well-known brands, mainly radiating customers around the project of about 30-40 kilometers, and can be further extended to surrounding cities during holidays, such as Dezhou, Tai'an, Zibo, Laiwu and other places.
Located in the East Lake High-tech Development Zone (Optics Valley) of Wuhan City, Wuhan Capital Outlet Project opened in April 2018 and has been the leading outlet market in Wuhan south of the Yangtze River since 2019. The project is adjacent to the Hubei Provincial Olympic Sports Center and the Optics Valley International Tennis Center, with convenient external transportation, many business offices and industrial parks in the surrounding area, a strong industrial atmosphere, obvious population attraction advantages, and strong consumption potential. The building form of the project is a two-storey above-ground and three-storey open block, with a construction area of 87,000 square meters and a rentable area of 49,000 square meters, settled in more than 200 international and domestic well-known brands, mainly radiating customers within a range of about 25 kilometers around the project, and can be further extended to surrounding cities on holidays, such as Huanggang, Huangshi and other places.
In particular, it is worth mentioning that compared with other commercial formats, outlets can effectively meet the consumer demand under different economic cycles by virtue of the business model of "famous products + discounts", have the support of a wider range of consumer groups, and have strong anti-cyclical attributes. From a domestic point of view, from 2020 to 2022, various retail formats have been affected to varying degrees, but the performance of the outlet format has continued to be strong, and the annual growth rate ranks first among major retail formats. In the new era of consumption, the transformation of the public's lifestyle and the burst of demand for family micro-tourism have injected strong development impetus into the outlets. In terms of stimulating domestic demand, promoting consumption, and building a better life, its unique value and advantages are becoming more and more prominent.
The future is promising, and professional operation and management are empowered
Post-operation and service is a key part of the entire commercial real estate industry chain, which has a far-reaching impact on the preservation and appreciation of commercial real estate. After the establishment of China Capital Outlets REIT, Beijing Capital Urban Development Group Co., Ltd. (hereinafter referred to as "Capital Juda"), a subsidiary of Beijing Capital Urban Development Group Co., Ltd. (hereinafter referred to as "Beijing Capital Urban Development Group"), served as the operation and management coordination agency, and Beijing Capital Juda Commercial Management Co., Ltd., a subsidiary of Beijing Capital Juda, served as the operation and management implementation agency.
Beijing Capital Group Co., Ltd. (hereinafter referred to as "Beijing Capital Group") is a large state-owned group company under the Beijing State-owned Assets Supervision and Administration Commission, as a large-scale industrial sub-group of Beijing Capital Group focusing on the field of urban development, with the three major businesses of "comprehensive urban development, comprehensive urban operation, and urban renewal and upgrading" as the main channel, and actively undertaking policy support businesses such as affordable housing construction and infrastructure construction, and is committed to becoming a comprehensive development and service operation platform for urban development. It is an important strategic force of Beijing Capital Group to serve urban development.
BCCD Group (BCL) officially entered the outlet business in 2009, and after more than ten years of intensive cultivation, the outlet business segment has entered a lean operation period from the investment and expansion period. As the flagship commercial investment management platform of Capital Urban Development Group with outlets as its core business, Capital Juda currently has 15 outlets under management across the country, with a total construction area of about 1.8 million square meters, realizing strategic coverage of municipalities, provincial capitals and potential consumption cities, and has established good cooperative relations with domestic mainstream brands with outlets, with a total of nearly 2,000 cooperative brand resources. With its excellent comprehensive strength, it has established a leading position in the outlet industry, and "Capital Outlets" has become one of the leading brands in China's outlet industry.
In the future, BCCD will continue to promote the construction of high-quality consumption scenarios, serve the society and people's livelihood, and continue to inject high-quality assets into REITs in the system to actively participate in and promote the high-quality development of the REITs market.
Risk Warning: 1. Public REITs have different risk-return characteristics from public funds that invest in stocks or bonds, and their expected risks and returns are higher than those of bond funds and money market funds, and lower than those of equity funds, which are high-risk varieties, and the specific risk rating results are subject to the rating results provided by fund managers and sales agencies. 2. Public REITs are infrastructure funds, most of the assets are invested in infrastructure projects, with equity attributes, affected by the economic environment, operation and management and other factors, the market value and cash flow of infrastructure projects may change, which may cause the price of the fund to fluctuate, and even there is a risk that the infrastructure project will suffer from extreme events (such as earthquakes, typhoons, etc.) and affect the price of the fund. 3. Public REITs investing in fixed income assets outside of infrastructure may be exposed to credit risk, interest rate risk, yield curve risk, interest rate spread risk, supply and demand risk and purchasing power risk. 4. Public REITs adopt closed operation, do not open subscription and redemption, and can only be traded in the secondary market, which has the risk of insufficient liquidity. 5. The Fund has other risks related to public funds and infrastructure projects, please refer to the prospectus and other legal documents for details. 6. The fund management company does not guarantee that the fund will be profitable, nor does it guarantee the minimum return. 7. Before investing in the fund, investors should carefully read the fund's "Fund Contract", "Prospectus" and "Product Key Facts Statement" and other fund legal documents, fully understand the risk-return characteristics and product characteristics of the fund, carefully consider the various risk factors existing in the fund, and fully consider their own risk tolerance according to their own investment objectives, investment period, investment experience, asset status and other factors, and make rational judgments and prudent investment decisions on the basis of understanding the product situation and sales suitability opinions. Bear the investment risk independently. 8. This material is not used as any legal document, and all the information or opinions expressed in the material do not constitute the final operation advice of investment, law, accounting or taxation, and our company does not make any guarantee for the final operation advice on the content of the material. Under no circumstances shall the Company be liable to any person for any loss arising from the use of any content in this material. The mainland fund has been in operation for a relatively short period of time and does not reflect all stages of the development of the stock market. The market is risky, and you need to be cautious when entering the market.
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