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Deutsche Börse launches Reit segment and indices

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Following the transformation of Alstria Office Reit into Germany’s first real estate investment Deutsche Börse has created an independent Reit segment for this securities class and ha

Following the transformation of Alstria Office Reit into Germany’s first real estate investment Deutsche Börse has created an independent Reit segment for this securities class and has begun to calculate Reit indices. Alstria Office Reit is the first real estate company to position itself as a Reit and to be included in the exchange segment.

Deutsche Börse says the creation of the new segment will raise the profile of Reits as an asset class for stock market trading in Germany, where legislation creating the legal framework for Reits was passed earlier this year.

The exchange expects the creation of a visible listing platform for Reit companies is set to boost attention among investors and create new business opportunities for intermediaries and service providers such as investment banks, auditors and lawyers.

Starting this month, Deutsche Börse will calculate two independent Reit indices on the basis of segment membership, The All Share index covers all Reits on the prime standard and general standard, and is accessible for both German and foreign Reits. The Reit RX selection index contains the 20 largest and most liquid Reits from the prime standard, including Alstria Office Reit, which is also part of the SDAX index. Weighting is based on free float market capitalisation.

Product providers can create investment products based on the index such derivatives and index funds. Deutsche Börse also offers the RX Real Estate Index, which allows investors to track the performance of Reits as well as other listed real estate companies.

‘We are very enthusiastic to be the first company included in the Deutsche Börse Reits segment and are proud that our company is breaking new ground for this new asset class in Germany,’ says Alstria Office Reit chief executive Olivier Elamine. ‘We are now looking forward to further German Reit companies to join.’

Frank Gerstenschläger, a member of the executive committee of Deutsche Börse with responsibility for the cash market, says: ‘Our Reit segment is our way of actively supporting the positioning of this new asset class for all market participants in Germany.’

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