In the context of the era of "great changes unseen in a century," the operation of local governments and urban investment has undergone tremendous changes; the traditional debt-investment model has come to an end, and under the pressure of reducing leverage, more and more Many new projects are handed over to enterprises for operation in a market-oriented model.

Among these market-oriented projects, the most eye-catching ones are those development projects with tens of billions of dollars and an area measured in square kilometers; then, for these dizzying projects, the core profit logic is How is it?

Binding expected value, sharing development dividends

In the current area development projects of government-enterprise cooperation, companies often make investments to share with the government various development benefits such as land, taxation, and property in the area. At first glance, it seems to be an expanded version of the first-level land development in the past, but due to the large area of development and the long development cycle; in essence, the company binds the growth of the value of the entire region in the future through this special method.

In the process of strengthening the domestic economic cycle, the conversion of new and old kinetic energy, and industrial upgrading, many emerging regions will become development hotspots, and the process of urbanization will also continue; in this context, there are bound to be many key regions and emerging regions , The transportation axis area will become the center of the next round of development, and its development speed will far exceed the average level, and the regional value will be greatly adjusted as the cycle rebounds.

In this context, companies invest in area development projects not only based on the return of the investment project itself, but also judging the value growth of different areas; if the right area is selected, the investment income in the area will far exceed that of ordinary infrastructure. Return on investment, realize high premium and enjoy development dividend. Therefore, investment in area development projects is not the present, but the future.

Bypass regulatory restrictions and achieve performance goals

In order to contain potential risks and balance economic growth, the regulation of certain industries, local governments, local state-owned enterprises, and financial institutions is becoming increasingly strict; The performance pressure of enterprises is still there.

Therefore, the current area development project is the product of such a delicate situation: when the investment pressure of the local government is still there, but the borrowing is greatly restricted; the enterprise hopes to obtain the order and legally comply with the law; the financial institution also hopes to find the direction of compliant delivery . As a result, the area development model has become a balance point where all parties can cooperate and compromise with each other, and thus can achieve their respective expected goals.

Therefore, it is not difficult for us to find that because the demands of all parties are only balanced at the moment of signing the project, the interests and opinions of all parties inevitably have multiple differences in the long and detailed work of the area development project. The road to real implementation of such projects will be long and difficult.

Matching financial instruments, flexibly harvesting spreads

In the past two decades, with the rapid development of urbanization and debt, industries such as infrastructure investment and real estate have been highly financialized; therefore, investment in large-scale area development projects is essentially a test of capital operation efficiency. Background companies use this special model to match a variety of financial instruments to obtain interest margins.

Therefore, entities participating in area development projects must have one of the following two characteristics: either they have a strong core credit, and achieve higher spreads at a low cost of capital; or they have a financial license to be able to carry out portfolio financing, Realize arbitrage of financial instruments.

After we understand the core operation logic of these several area development projects, we should be able to understand the special features of this model; we can also understand that those companies in the future will actively deploy and obtain the dividends of the times. Editor/Xu Shengpeng