Demand for Asia Pacific Office Space Expected To Jump By 65%
ASIA PACIFIC – Thanks to a growing workforce, UOB Asset Management expects that demand for office space across the region would surge by 65 percent from 2020 to reach 1.35 billion sq ft by 2030, reported Hubbis on Wednesday morning (24 November, SGT).
However, more tenants have disclosed that eco-friendly office buildings are among their top 3 considerations, with 70 percent of surveyed occupants saying that they are willing to pay a higher office rent for green-certified workspaces.
As such, this presents huge growth opportunities for property firms focused on developing or leasing eco-friendly buildings and real estate.
This was stated by UOB Asset Management when it announced the listing of UOB Asia Pacific Green Real Estate Investment Trust (REIT) Exchange-Traded Fund (ETF). This is the first of such ETF in the world that lets people invest in quality green REITs across Asia Pacific with dividend yields.
During the initial offering period that closed on 18 November, the ETF attracted more than S$80 million in assets.
The newly launched REIT ETF aims to replicate the performance of the recently launched iEdge-UOB APAC Yield Focus Green REIT Index, which UOBAM created in collaboration with GRESB and the Singapore Exchange (SGX). The index monitors 50 higher-yielding REITs across the region that show relatively better environmental performance, while meeting liquidity requirements.
The REITs included in the UOB Asia Pacific Green REIT ETF are assessed based mainly on GRESB’s statistics on the REIT’s environmental performance, including support for green building certification, reduction in greenhouse gas emissions, and promotion of energy and water conservation.
“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,” commented UOB’s Deputy Chairman and CEO Wee Ee Cheong.
The REITs included in the newly launched REIT ETF are located across Singapore, Australia, and Hong Kong, Japan and. Sectors include industrial, residential, retail, and REIT with office properties.
