IREIT Global's maiden acquisition, an office property in Berlin.IREIT Global's maiden acquisition, an office property in Berlin.

Units of Singapore-listed office REIT, IREIT Global (SGX:UD1U), fell by 3.07% at the close of the trading day on 28 September over fears of continued weakness in the German market amidst the Volkswagen emissions-cheating scandal.

Weakness in shares of German-listed automotive makers and related companies, which make up a substantial part of the German market, pushed the DAX to its lowest in nine months in the past week.

This may have fuelled fears of residual effects on the units of IREIT Global which ended the trading day at SGD0.63. IREIT Global currently has a portfolio of five office properties across Germany.

Hints of a possible rate hike by the US Federal Reserve by the end of 2015 may have also weighed on investor sentiments in both the Singapore and German markets. Singapore’s benchmark Straits Times Index fell by 40 points to end at 2791.92, its lowest since 2012.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.