이 기사는 2019년 12월 04일 08:00 thebell 에 표출된 기사입니다.

Shinhan Alpha REIT has joined the S&P Global REIT index. Market experts see the stock has paved the way for followers to attract institutional investors at home and abroad.

According to investment banking (IB) industry sources on November 29, Shinhan Alpha REIT has joined eight indices launched by S&P as of November, 2019. These indices are composed of blue-chip stocks.

It is notable that Shinhan Alpha REIT has been included in three global indices specialized in REITs, such as S&P Global REIT Index, S&P Developed REIT Index and S&P Pan Asia REIT Index.

Market watchers say that Shinhan Alpha REIT is starting to be recognized as a global blue-chip office REIT. The stock is likely to be one of the first picks when domestic and foreign institutional investors invest in REITs.

With Shinhan Alpha REIT joining the S&P REIT index, the stock is more likely to be held by index funds. An index fund is a type of mutual fund with a portfolio constructed to match or track the components of a financial market index.

The world’s second largest exchange traded fund (ETF) manager Vanguard bought Shinhan Alpha REIT in March. The purchase was made automatically, with the stock being included in the S&P REIT index early this year.

“During its initial public offering (IPO) process last year, Shinhan Alpha REIT mentioned about joining in S&P indices after the listing. It is encouraging that the stock can lure a lot of foreign institutional investors with long-term perspective following its inclusion in the index,” a market watcher said.

Shinhan Alpha REIT has risen more steeply compared to other domestic REIT thanks to the inclusion in the global indices.

Shinhan Alpha REIT finished its trading day at 8290 won on November 29, a 66 percent increase from its IPO price of five thousand won per share. The stock has risen rapidly, with new highs repeatedly being reached. Shinhan Alpha REIT went above 9000 won mark on November 5, for the first time since the IPO. It set its intraday high at 9440 won on November 8.

Market experts say that domestic REIT market has gained ground on the back of Shinhan Alpha REIT. Some say South Korean market has started to gain attentions as a major stock exchange that the blue-chip office REIT is listed on.

Latecomers are expected to benefit indirectly from Shinhan Alpha REIT for their future IPO or fundraising, as they may raise some of the proceeds from foreign institutional investors. Market starts to anticipate that a case like Homeplus’ REIT won’t happen again. In the first quarter, South Korean hypermarket chain Homeplus had withdrawn plans to list its REIT amid lukewarm response from institutional subscriptions at home and abroad.

“Foreign institutional investors still have limited awareness of South Korean REITs. Listed REITs along with Shinhan Alpha REIT will have to put efforts into boosting their enterprise value to improve domestic and foreign investors’ perspectives,” said a second market watcher.

(By reporter Jeon Kyung-jin)