Arcapita Group Holdings, an alternative investment firm, is reportedly exploring the establishment of a real estate investment trust (REIT) to house its Middle Eastern property portfolio. Sources familiar with the matter have indicated that the firm has approached banks regarding the potential setup of a REIT, which would encompass assets valued at $1 billion or more. The initiative remains in its early stages, and no definitive decisions have been made. Arcapita could opt to pursue other avenues for its property portfolio or ultimately decide against creating the REIT. Arcapita has a notable track record as a global investor in real estate, accumulating a $13 billion portfolio comprising warehouses, retirement homes, and other assets across prominent locations. The firm anticipates sustained demand for real estate, particularly in the Gulf region where economic growth is bolstered by high oil prices. Arcapita is currently engaged in the development of a 30,000 square-meter warehouse in Dubai in collaboration with DSV A/S, a Danish logistics enterprise. This aligns with the firm's stated objective of expanding its logistics portfolio within the GCC to meet the regional demand for industrial real estate. Arcapita's portfolio currently includes 30 properties spanning 3.5 million square feet, leased to over 80 tenants. The firm's operations extend across multiple global locations, including Atlanta, London, Singapore, Riyadh, Abu Dhabi, and Bahrain. Arcapita specializes in offering Shariah-compliant investments in real estate and private equity to high-net-worth and institutional investors.