DEALS
Zhong Lun Advises on the Establishment and Investment of the First Housing Rental Fund in China
Zhong Lun Advises on the Establishment and Investment of the First Housing Rental Fund in China
Release time：2022-11-15
Voice Announcements
On November 8, 2022, the first housing rental fund in China was established in Beijing. The fund, wholly owned by China Construction Bank (CCB), raised RMB 30 billion. At the initial stage, the fund will mainly invest in existing assets of real estate developers, such as commercial, office and self-owned residential properties. By purchasing and reconstructing those assets into rental housing, the fund is conducive to liquidating the existing assets and increasing the supply of urban rental housing, contributing to the government’s campaign of “simultaneous promotion of renting and homebuying".
Partners Han Hao and Yi Shi have provided full-range legal services for the establishment and investment of the fund, including but not limited to participation in discussion of a scheme for the fund’s establishment and assistance in signing and implementing the fund’s investment projects.
The first batch of projects backed by the fund have been launched, and more than 20 key projects are underway, with a total scale of project assets exceeding RMB 10 billion. On its date of establishment, the fund also signed cooperation memorandums with industry players based in Beijing, Chongqing, Hubei, Chengdu, Nanjing, Guangzhou, Foshan and other regions, agreeing to cooperate in establishing local sub-funds. Banks will provide comprehensive services including credit support, operation management and listing of public REITs, while local governments will identify and recommend potential projects, comb lease demands and offer other support to the fund. Zhong Lun will continue to provide professional and comprehensive legal services for the fund to assist with the development of the rental housing market and help establish a new system of financial ser
