Grace Ashiru
Africa Logistics Properties Holdings Limited (ALP) has raised $34.55 million through its ALP Industrial Real Estate Investment Trust (ALP REIT), representing an overall subscription of 115 per cent. The total includes an additional commitment of $5 million which will be invested as the REIT scales.
The REIT by ALP, which invests in and manages institutional-grade industrial real estate in Kenya, is set to become the first dollar-denominated security to list and trade on the Nairobi Securities Exchange (NSE).
The offer saw subscriptions from a wide investor base, which included development finance institutions, domestic and regional institutional investors, and finally an unprecedented participation from high-net-worth individuals. All applicants will receive their full unit allocations.
ALP Chief Executive Officer, Raghav Gandhi, said the strong uptake reflects investor confidence in Kenya’s industrial real estate sector and the broader regional investment landscape.
“We are pleased that the market responded very positively to our offer, demonstrating confidence not only in the work we continue to do but also in the investment opportunities available in this region. As the first industrial REIT in East Africa, we are very encouraged by this outcome,” he said.
The offer, restricted to institutional investors, will see at least 80 per cent of distributable income paid to investors in line with REIT regulations.
Key investors include the Private Infrastructure Development Group (PIDG) through its project development solution, InfraCo, and MOBILIST, the UK government’s flagship public markets programme. InfraCo has committed an additional $5 million which will be deployed as the REIT achieves further scale. Their participation underscores international confidence in Kenya’s industrial real estate market, ALP’s investment model and the management team’s track record.
ALP operates institutional-grade warehousing hubs at Tilisi in Limuru and Tatu City in Kiambu County, strategically located along key transport corridors and close to established industrial zones. The facilities feature large-format warehouses, and modern loading infrastructure. The warehouses are built to IFC EDGE Advanced green building standards.
The REIT is managed by ALP REIT Management Limited, licensed by the Capital Markets Authority in November. Co-Operative Bank of Kenya serves as the trustee, Dyer & Blair Investment Bank is the transaction advisor as well as the lead placing agent and sponsoring broker, Deloitte & Touche acts as auditor, CBRE Excellerate provides property valuations, and Image Registrars is the unit registrar.
