In a landmark moment for Kenya’s capital markets, Africa Logistics Properties Holdings Limited (ALPH) has officially listed the ALP Industrial Real Estate Investment Trust (ALP REIT) on the Nairobi Securities Exchange (NSE).
Approved by the Capital Markets Authority (CMA), the listing breaks new ground on two fronts: it is the first industrial REIT in East Africa and the very first USD-denominated security to trade on the NSE. The move offers a vital mechanism for investors to engage with regional infrastructure while providing the stability of a hard-currency asset.
The Financial Blueprint: Unpacking the Capital
The listing, valued in total at USD 39.95 million, successfully raised USD 29.55 million, drawing heavy support from international development finance.
The UK government served as the primary anchor, committing an immediate USD 24 million (KES 3.14 billion) to the listing. This strategic injection was delivered through two key vehicles:
- PIDG (Private Infrastructure Development Group): Committed USD 15 million as a cornerstone investor through its project development solution, InfraCo.
- MOBILIST Programme: Invested USD 9 million.
The Scaling Pipeline: Demonstrating long-term confidence in the asset class, PIDG has committed an additional USD 5 million, which is strictly earmarked for investment as the REIT scales its operations in the future. This brings PIDG’s total structural commitment to USD 20 million over the asset’s lifecycle.
Market Impact: A Gateway for Institutional Capital
The introduction of this specialised, dollar-denominated asset class is designed to deepen Kenya’s financial markets, providing a credible alternative for institutional investors.
Ross Ferguson, Programme Lead for MOBILIST, highlighted the broader economic strategy: “Creating listed products that domestic pension funds can invest in is essential to reducing their over-reliance on government debt and directing long-term capital to the businesses that drive growth. This is how we turn public markets into a scalable engine for sustainable development.”
NSE Chief Executive Officer Frank Mwiti noted the structural advantages, stating that the asset provides investors with “a seamless gateway to Africa’s industrial logistics sector, combining the stability of hard currency with the growth potential of regional infrastructure.”
The Operational Reality: Driving Industrial Growth
The capital secured will consolidate and expand Kenya’s modern industrial backbone. ALPH Chief Executive Officer Raghav Gandhi emphasised that the successful raise “underscores Kenya’s growing capital markets maturity and the increasing attractiveness of industrial real estate as a sustainable investment class.”
Since 2016, ALPH has established two flagship, large-format industrial parks:
- ALP North: A 50,000 sqm facility in Tatu City.
- ALP West: A 20,000 sqm facility in Tilisi.
These logistics hubs feature advanced loading infrastructure designed to meet the rigorous demands of Kenya’s expanding manufacturing and e-commerce sectors. Crucially, both facilities are built to strict IFC EDGE Advanced green building standards, ensuring high operational efficiency and environmental sustainability.
“Having anchored the establishment of REITs for affordable housing in Nairobi, PIDG is familiar with the REIT structure, and we know that it works to mobilise vital new sources of capital,” said Claire Jarratt, PIDG Head of Investment Management for InfraCo, viewing the listing as a strong endorsement of ALPH’s governance and sustainable business model.
