On December 1, the National Development and Reform Commission (NDRC) released the "Industry Scope List for Infrastructure Real Estate Investment Trusts (REITs) Projects (2025 Edition)" (hereinafter referred to as the "List"), further expanding the scope of infrastructure REITs issuance. Notably, urban renewal facilities, including projects for renovating old neighborhoods and industrial areas, as well as comprehensive urban renewal projects, have been added to the eligible sectors.
"The most strategic highlight of this policy is the inclusion of urban renewal, which is not merely a simple expansion of scope," said Zhao Ran, Dean of the ICCRA Housing Rental Industry Research Institute. According to Zhao, the simultaneous inclusion of urban renewal facilities and rental housing sectors provides a clear "combo strategy" for the real estate industry's transition to a new development model, emphasizing operations and revitalizing existing assets.
Zhao noted that the policy encourages the integration of urban renewal and market-oriented rental housing, injecting new vitality into the transformation of existing assets. This approach not only addresses housing demands in cities with net population inflows but also avoids large-scale demolition and construction, promoting high-quality urban development. Additionally, the "urban renewal + rental housing" model aligns well with REITs financing characteristics, as urban renewal projects require substantial upfront investment and long incubation periods, while rental housing operations rely on stable, long-term funding. REITs provide a complete cycle of "development-incubation-exit-reinvestment," incentivizing private capital participation in urban renewal and rental housing projects.
Li Chao, Deputy Director of the NDRC Policy Research Office and spokesperson, highlighted that since the launch of infrastructure REITs in 2020, the NDRC and the China Securities Regulatory Commission (CSRC) have continuously expanded the market. Currently, REITs cover 52 asset types across 12 major industries, with 18 asset types in 10 sectors having achieved their first issuance.
The newly released List introduces two additional sectors—urban renewal facilities and commercial office facilities—along with new asset types such as hotels and sports venues. Hotels are now eligible under three sectors: industrial park infrastructure, cultural tourism infrastructure, and consumer infrastructure, while sports venues fall under consumer infrastructure.
The List specifies that consumer infrastructure projects eligible for REITs include department stores, shopping malls, commercial streets, farmers' markets, and community commercial projects ensuring basic livelihood needs. Hotels and commercial office spaces that are physically inseparable and owned by the same sponsor can be included as underlying assets, provided they do not exceed 30% of the total floor area (50% in exceptional cases). Four-star and above hotels are also eligible.
Importantly, the List stipulates that sponsors for rental housing, consumer infrastructure, commercial office facilities, elderly care facilities, and urban renewal projects must be independent legal entities focused on these sectors, excluding those engaged in residential property development. Zhao Ran emphasized that this requirement ensures participants focus on long-term operations rather than short-term sales, steering the industry toward sustainable growth.
Li Chao added that the NDRC will continue collaborating with the CSRC to optimize the application process, dynamically refine project requirements, and improve efficiency, supporting more eligible projects while maintaining strict risk and quality controls to bolster infrastructure REITs' role in economic development.
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