Alternative investment firm Arcapita Group Holdings is reportedly evaluating the establishment of a real estate investment trust (REIT) to house its Middle Eastern property assets. Sources familiar with the matter revealed that the firm has engaged banks to explore the creation of a REIT, which could manage assets valued at over $1 billion.
Although discussions are in the preliminary stages, and no final decision has been made, the proposed REIT would align with Arcapita’s strategy to capitalise on the growing demand for income-generating real estate investments, particularly in the Gulf region. The firm could also explore alternative routes for managing its property portfolio, or it may opt not to proceed with the REIT.
With a $13 billion global portfolio, Arcapita has established itself as a significant player in real estate investment, acquiring properties ranging from warehouses to retirement homes across markets such as Chicago and Dubai. Its commitment to the logistics sector in the Gulf is evident, as seen in its partnership with Danish logistics firm DSV A/S to develop a 30,000 square-meter warehouse in Dubai. The firm has also built a portfolio of 30 properties spanning 3.5 million square feet, leased to over 80 tenants.
The potential REIT comes at a time when Gulf capital markets are experiencing increased activity. High oil prices have bolstered economic growth in the region, spurring interest in REITs as a vehicle for investors to access income-generating real estate assets without directly owning properties. This trend reflects the broader appetite among institutional and high-net-worth investors for Shariah-compliant investment options, a hallmark of Arcapita’s offerings.
With offices across Atlanta, London, Singapore, Riyadh, Abu Dhabi, and Bahrain, Arcapita continues to leverage its global reach to identify and develop high-value opportunities. Should the REIT materialise, it could position Arcapita to further solidify its leadership in the region’s burgeoning real estate sector.
