Africa Logistics Properties

Kenya’s industrial real estate sector is expanding, driven by agricultural demand, and a rise in e-commerce. However, limited access to capital constrains the sector’s ability to scale. Established in 2016, Africa Logistics Properties Holdings Ltd (ALPH) currently operates two industrial parks, the 50,000 square metre ALP North facility in Tatu City, and the 20,000 square metre ALP West facility in Tilisi. These facilities have attracted significant interest from both local and international tenants, positioning ALPH well to scale its footprint. However, developing such assets requires substantial upfront investment and significant fundraising efforts.

To expand their operations in the country, ALP has recently accessed Kenya’s capital markets to finance their industrial assets. To attract capital investment from institutional investors such as pension, life insurance, and mutual funds, ALPH received Capital Markets Authority (CMA) approval to establish an Income Real Estate Investment Trust (I-REIT). Drawing on its experience of using REITs to grow Acorn Holdings’ successful affordable student housing offering in Nairobi, and its recent REIT investment for Acorn’s expanded offering for young urbanites, PIDG has anchored the ALP REIT through the investment arm of its project development solution, InfraCo. Delivering stable, USD denominated returns for investors, the I-REIT is expected to attract institutional investors to Kenya’s industrial real estate market. With the ALP North and ALP West facilities being transferred to the ALP REIT as seed assets, ALPH aims to develop new assets through associated Special Purpose Vehicles, with the intention of transferring these to the I-REIT once they are operational and stabilised.