Following the successful issuance of China’s first parking asset REITs in 2023, Shoucheng Holdings has recently completed the issuance of its second parking asset REIT -- the “Guotai Junan – Shoucheng Holdings Smart Parking Phase II Asset-Backed Special Plan.” This offering has a total issuance amount of CNY 370 million, utilizes parking facilities in Beijing, Chongqing, and Foshan as the underlying assets. It features a senior tranche interest rate of 2.4% and achieves an oversubscription rate of 2.07 times, with an 18-year term (3+3+3+3+3+3). The issuance has further solidified Shoucheng Holdings’ business model of “asset circulation + strong operation” and demonstrated its ongoing expertise in asset securitization.

High-quality underlying assets unlock liquidity and value. The special plan’s underlying assets encompass eight parking facilities located in Beijing, Chongqing, and Foshan. They are economically vibrant, densely populated cities characterized by a significant gap between parking supply and demand, presenting considerable potential for operational enhancement. The parking facilities are strategically situated near residential areas, office buildings, and commercial centers, exhibiting strong asset appeal. As the guarantor for the special plan, Shoucheng Holdings attracts significant oversubscription by investors by leveraging its leading asset management capabilities and expanding its business scale.

Asset circulation drives efficient capital utilization. Following the successful issuance of China’s first parking asset REIT last year, the successful launch of this second offering further highlights the capital market’s strong confidence in Shoucheng Holdings’ operational capabilities within the parking sector. It marks a significant advancement in the company’s asset circulation strategy, leveraging asset securitization to reach a new stage of development. On one hand, the REITs effectively unlocks the liquidity of the underlying assets, providing the company with new financing channels. On the other hand, it boots the company’s liquidity and asset utilization, securing ample financial resources for rapid expansion. This facilitates the acquisition of more high-quality parking assets and further consolidates the company’s leading position in parking asset management.

Deepening engagement in public REITs opens pathways for the industry. As one of the earliest participants in China’s public REITs market, Shoucheng Holdings employs a closed-loop model characterized by “asset acquisition/investment and construction – asset cultivation – operational efficiency improvement – asset securitization – capital recirculation,” consistently driving innovation within infrastructure asset management. By leveraging tools such as public REITs, the company continuously unlocks the value of infrastructure assets, providing a practical and sustainable model for the industry.

Strengthening asset circulation helps the company consolidate its industry leadership. As a leading provider of core infrastructure asset services in China, Shoucheng Holdings is engaged in asset operation and integration, provides a closed loop of services throughout the lifecycle of infrastructure assets, and offers holistic one-stop solutions. Building upon the successful issuance of two parking asset REITs, Shoucheng Holdings will further consolidate its leading position in China’s infrastructure real estate management sector. The company will enhance its outstanding operational capabilities in parking asset management, actively promote its public REITs and other businesses, find new exit strategies for high-quality infrastructure assets, and utilize the capital raised through asset securitization for reinvestment and expansion. Shoucheng Holdings will also strengthen high-level collaboration with strategic partners to solidify its industry leadership in REITs, contributing to the vibrant development of both infrastructure asset management and the public REITs market in China.