OUE Commercial REIT to join FTSE EPRA Nareit Global Real Estate Index series

OUE Hospitality Trust sign at Orchard RoadOUE Hospitality Trust sign at Orchard Road. Image taken pre-Covid

OUE Commercial REIT will be included in the FTSE EPRA Nareit Global Real Estate Index Series (Global Developed Index), effective 20 September, the REIT’s manager said in a filing to SGX Thursday.

“Our entry into the leading benchmark index for institutional real estate investors is a significant milestone which will further enhance OUE C-REIT’s visibility and investability amongst global investors,” Tan Shu Lin, CEO and executive director of the REIT’s manager, said in the statement.

“Our commitment to driving long-term sustainable growth for unitholders, including the transformational merger with OUE Hospitality Trust back in 2019 to create one of the largest diversified Singapore REITs, has enabled this achievement,” she added.

The FTSE EPRA Nareit Global Developed Index tracks listed REITs and real estate holding and development companies globally. It was developed by FTSE Russell with the European Public Real Estate Association, or EPRA, and the National Association of Real Estate Investment Trusts (Nareit).

Singapore’s smaller REIT’s often cite joining the FTSE EPRA Nareit Global Real Estate Index Series as a goal as it will increase the base of investors, including passive funds tracking the index. For example, the Amundi Index FTSE EPRA Nareit Global UCITS ETF DR, which tracks the index, has around 1.1 billion euros in assets under management, according to its end-July factsheet.

OUE Commercial REIT, with total assets of S$5.8 billion as of end-June, has seven commercial and hospitality properties in Singapore and in Shanghai, including 1,640 hotel rooms. The portfolio includes four Grade-A office properties — OUE Bayfront, a 67.95 percent interest in One Raffles Place and the office components of OUE Downtown in Singapore’s central business district as well as a 91.2 percent strata interest in Shanghai’s Lippo Plaza.

The REIT also holds two hotels — the 1,077-room Mandarin Orchard Singapore and the 563-room Crowne Plaza Changi Airport — and one retail property, the Mandarin Gallery.