Case study

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20 17 10 18, the 19th National Congress opened. In the report of the conference, it was mentioned that "the house is for living, not for speculation", and the applause lasted for a long time, which fully reflected the party's situation and public opinion, was a solid vane of the progress of housing leasing, and also actively supported the securitization products of housing leasing assets in China. We will deeply follow the ABS project in housing leasing through case analysis and special report.

Up to now, the Exchange has approved and successfully issued four housing lease asset securitization projects with a planned issuance amount of 665,438+55 million yuan. Issuers include Rubik's Cube Apartment, Freehand Apartment, New Apartment and Poly Real Estate. The following focuses on the analysis of the "CITIC Securities Exemption 1 Rent Installment Trust Beneficial Right Asset Support Special Plan" project.

1 Basic information of securities

Table 2. ? Basic elements of rent-free installment ABS

2. Original owner and asset server

(1) Beijing Ziru Zhongcheng Yourong Information Technology Co., Ltd. (original owner)

Zhongcheng Yourong is the backstage support department of Free Brand, which is responsible for the construction and maintenance of financial informatization in Free Asset Management System. The company was established on February 4, 20 16 with a registered capital of 50 million yuan and registered in Beijing Miyun Economic Development Zone. The shareholder of Zhongcheng Rongrong is Beijing Ziru Asset Management Co., Ltd. (hereinafter referred to as "Ziru Asset Management"), and the actual controller is Zuo Hui, with a shareholding ratio of 94.6%. Zuo Hui, male, EMBA of Peking University, is currently the chairman of Chain Home, vice chairman of China Real Estate Appraisers and Real Estate Agents Association, vice chairman of Beijing Real Estate Agency Industry Association and vice chairman of All-China Real Estate Chamber of Commerce. Free Web was established on 20 1 1, and Home Link was established on 20 14.

(2) Beijing Ziru Asset Management Co., Ltd. (asset service agency)

Beijing Ziru Asset Management Co., Ltd. is the operating entity of Ziru brand. The company was established on 20 15 10/20, with a registered capital of 32 million yuan. After five years of development, the product line of Beijing Free Asset Management has developed from the only shared product at the beginning of its establishment-Free Friendly Home to five product lines: Free Friendly Home, Free Apartment, Free Post Station and Free B&B, spanning long-term rental and short rent market, providing many O2O life services such as cleaning, professional maintenance, moving, and free quality products during lease. Up to now, there are 400,000 self-managed rooms in Beijing, and the cumulative number of service tenants in Beijing exceeds 6.5438+0 million, which has developed into the first brand in the domestic long-term rental market.

From the perspective of ownership structure, all shareholders of Beijing Holdings are natural persons, with Zuo Hui holding 94.6% and Shan Gang holding 5.4%.

In terms of business model, Beijing's free asset management business model is based on its own B2C rental platform, providing customers with efficient housing search and housing services, as well as services during the rental period. The profit model is "buy low and sell high", which mainly includes rental income, value-added services and financial business fees. As for the company's products, (1) long-term rental products include three product lines, namely, free friend, free rent and free rent, in which free friend and free rent are decentralized long-term rental businesses, and free rent is centralized long-term rental business. (2) short rent products include free post stations and free homestays. The basic asset of this special plan, rent installment micro-loan, corresponds to the business lines such as "Free Friends" and "Free Whole Rent" in long-term rental products, that is, the decentralized long-term rental business under Beijing Free Asset Management. Risk control measures for rent installment business, (1) pre-loan, real-name authentication, work certificate, occupancy verification, cross-audit, etc. (2) Post-loan management. Collect by SMS, WeChat, email, posting reminders at home, etc. If the tenant anticipates and breaches the contract and fails to withdraw/cancel the contract for more than 3 natural days, it will be automatically locked.

The basic asset of the free rent installment ABS project is the trust beneficiary right, and the corresponding basic asset is the small loan creditor's right of rent installment issued by the trust plan to Beijing long-term rental apartment tenants. The borrower is required to be a non-school student above 18, with sesame score of not less than 550 or exemption score of not less than 70, and no bad record of dishonesty.

The formation of basic assets. (1) The customer chooses long-term free serviced apartment and signs a house lease contract with Beijing Free Asset Management; (2) The customer chooses to apply for a loan by installments with rent; (3) Beijing Free Asset Management and Channel Agency conducts qualification examination for customers; (4) The channel signs a loan contract for rent installment loan with customers; (5) The customer pays one month's rent and a deposit equivalent to the monthly rent online; (6) Beijing Ziru Asset Management arranges channels to provide customers with small loans for the remaining 1 1 month rent, and the loans will be paid directly to the designated account of Beijing Ziru Asset Management through entrusted payment arrangement; (7) The customer repays the loan on a monthly basis, that is, pays the rent and loan service fee.

Basic assets. As of May, 20 17, 10, the balance of small loans for basic assets under the special plan basic assets trust plan was 492 million yuan (the total scale of the trust plan was 500 million yuan, including the trust industry guarantee fund and cash paid), * * * involved 23,500 contracts, and the contract term was 1 1. In terms of regional distribution, it is concentrated in Beijing, Shanghai and Shenzhen, with Beijing accounting for about 60%. In terms of default, the expected state of assets of small loans in rent-free installment is less than 0.38%, and the expected rate is low. At present, the interest rate of all loans is 6.27%, the loan term is 1 1 month, the principal and interest are equal, and the IRR of loans is above 1 1%.

4. Transaction structure

(1) Cheng Yourong, the original obligee, issued a small loan in installments to the lessee through the "Huirun No.5-Free Self-sensing Series Single Fund Trust Project Single Fund Trust" established by the Foreign Trade Trust; (2) Zhongcheng Yourong transferred the beneficial right of the trust under the single fund trust to the "Special Asset Support Plan for Beneficial Right of Rent-free Installment Trust of CITIC Securities 1" established by CITIC Securities; (3) According to the cash flow of the basic assets, the project manager designed the structured product "Free Staging ABS" with priority and inferior level; (4) The lead underwriter will sell "free housing installment ABS" to investors; (5) Investors transfer the subscription funds into the bank account designated by the lead underwriter; (6) The lead underwriter will call the raised funds as the consideration of assets to the original equity holders.

4. Credit enhancement measures

(1) priority-secondary structured hierarchy, where the priority file is supported by the 10% credit of the secondary file.

(2) Commitment of differential payment: Beijing Free Asset Management Company will provide differential payment for the special plan.

(3) The external guarantee of CSI Credit provides irrevocable joint and several liability guarantee for Beijing's free asset management obligations to make up the difference.