The General Office of the National Development and Reform Commission ("NDRC") has recently issued the Circular on Effectively Working on the Application for Pilot Projects of Real Estate Investment Trusts (REITs) in the Infrastructure Field (the "Circular").
The Circular calls for emphasis on key regions, with priority given to supporting infrastructure projects located in the regions under major national strategies such as the Outline of the Plan for Coordinated Development of the Beijing-Tianjin-Hebei Region. The Circular also stresses major industries, with priority given to supporting infrastructure projects for improvement of weaknesses and with pilot projects in seven new infrastructure industries, including warehousing and logistics, being encouraged. Meanwhile, the Circular proposes that the pilot projects to develop national strategic emerging industrial clusters, high-tech industrial zones and parks, and specialized industrial zones and parks are encouraged to be carried out. Real estate projects such as hotels, shopping malls, office buildings, apartments and residences are not covered in the pilot scope. In addition, the Circular sets forth five basic conditions that the pilot projects shall meet, including "the operation period of a project shall not be less than three years in principle", specifies the requirements for application materials on pilot projects and the application procedures for pilot projects, and requires strict review of compliance of pilot projects.