UOB Asset Management (UOBAM) has listed the UOB Asia Pacific Green Real Estate Investment Trust (REIT) Exchange-Traded Fund, the world’s first.
The ETF enables individuals to invest in quality green REITs across Asia Pacific with dividend yields. It also attracted S$80m ($58.6m) in assets during the initial offering period.
Projected demand for office space across Asia Pacific is expected to grow 65% by 2030, according to Cushman Wakefield.
As a result, the UOB APAC Green REIT ETF aims to replicate the performance of the iEdge-UOB APAC Yield Focus Green REIT Index, which UOBAM created in partnership with Singapore Exchange (SGX) and GRESB.
Wee Ee Cheong, deputy chairman and chief executive officer, UOB, said: “The impact of the sustainability megatrend is wide-ranging, from economies to businesses and individuals. The call for action continues to accelerate, reinforcing the urgency for collective efforts. Green real estate will be a huge driver in the transition to a lower carbon economy, with tremendous growth potential and investment opportunities. We are honoured to partner SGX and GRESB in the world’s first Asia Pacific green REIT ETF and will continue to play our role as a catalyst and enabler in steering wealth to sustainable investments.”
Thio Boon Kiat, chief executive officer, UOBAM, added: “The UOB APAC Green REIT ETF gives investors an opportunity to participate in the development of sustainable real estate taking place across Asia Pacific so they can invest for profit and purpose. Backed by our three decades of investment experience in Asia, we believe we are helping investors buy into quality green REITs that will strengthen over time and also receive stable and regular income. We believe that there is no better time to be part of the green wave sweeping across the region’s real estate industry.”
The REITs are spread across Australia, Hong Kong, Japan, and Singapore. In addition, the UOB APAC Green REIT ETF is aiming for a dividend yield of up to 4%.