Singapore Exchange (SGX) announced on 5 August that it will be launching Asia’s first international REIT futures.
The products are namely the SGX FTSE EPRA Nareit Asia ex-Japan Index Futures and the SGX iEdge S-REIT Leaders Index Futures.
Both products will be launched on 24 August in response to investor demand for greater exposure to the liquid and fast-growing Asia ex-Japan REIT market, said the SGX.
The FTSE EPRA Nareit Global Real Estate Index series has an estimated USD340 billion of assets under management actively benchmarked or passively tracking the indices.
Meanwhile, the iEdge S-REIT Leaders Index is the most liquid index-basket representation of the Singapore REIT (SREIT) market, said the SGX.
Both futures are designed in accordance with Commodity Futures Trading Commission guidelines, which would allow broad distribution to US and global institutional investors.
“Over the past 18 years since the first REIT listing on SGX, we have established a strong REIT ecosystem with increasing investor interest, deep liquidity and active issuer participation”, said Michael Syn, Head of Equities at SGX.
“SGX offers a comprehensive product suite, ranging from stocks, REIT ETFs – and now REIT futures – to meet increasing customer demand”, he added.
Singapore is currently the largest REIT market in Asia ex-Japan, with 44 REITs and property trusts which have a combined market capitalisation of SGD98 billion (USD70 billion).