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Bahrain’s Arcapita to set up $1bn real estate investment trust

Arcapita has more than $1 billion in industrial real estate assets under management Arcapita
Arcapita has more than $1 billion in industrial real estate assets under management

Arcapita Group Holdings, a Bahrain-based global alternative investment company, is planning a real estate investment trust (REIT) of its property assets in the Middle East valued at $1 billion, a news report said.

Banks have been approached to set up the REIT, Bloomberg reported, citing sources familiar with the matter.

The report said the plan is in its early stages, adding that the company is looking at other options for its property portfolio. No further details were given.

Arcapita expects real estate demand to remain strong, mainly in the Gulf region, supported by high oil prices.

The company is developing a 30,000 sq m warehouse in Dubai with Danish logistics company DSV. Construction commenced on Tuesday, with completion slated in 11 months.

Since 2010, the investment company has built a platform of more than 30 properties covering an area of 3.5 million sq ft, leased to over 80 tenants.

It currently has more than $1 billion in industrial real estate assets under management.