Kenya’s Industrial Real Estate gains global backing in NSE listing

Kenya industrial real estate has received strong international confidence after Africa Logistics Properties Holdings Limited successfully listed its ALP Industrial Real Estate Investment Trust on the Nairobi Securities Exchange.

The listing was officially marked by a bell-ringing ceremony at the bourse. The UK government committed USD 24 million (KSh 3.14 billion) through two key programmes, the Private Infrastructure Development Group and MOBILIST as cornerstone investors.

The Private Infrastructure Development Group invested USD 15 million while MOBILIST contributed USD 9 million. These commitments helped the company raise USD 29.55 million in the REIT with the overall listing valued at USD 39.95 million. An extra USD 5 million from the Private Infrastructure Development Group will support future growth of the trust.

The ALP REIT is the first industrial real estate investment trust in the region and also the first USD-denominated security listed on the Nairobi Securities Exchange. It received approval from the Capital Markets Authority before the listing.

The successful offer attracted wide participation from local and regional institutional investors. Analysts see this as an important step in deepening Kenya capital markets and providing new investment avenues in the logistics and manufacturing sectors.

Africa Logistics Properties has already developed two flagship projects since 2016. These are the 50,000-square-metre ALP North industrial park in Tatu City and the 20,000-square-metre ALP West in Tilisi. Both facilities feature large modern warehouses built to advanced green building standards.

The Private Infrastructure Development Group is using its experience from previous real estate investment trust projects in affordable housing to now support industrial infrastructure through its InfraCo arm.

Raghav Gandhi, chief executive officer of Africa Logistics Properties, said the listing demonstrates Kenya growing capital markets maturity and the rising appeal of industrial real estate. He noted that the UK investors participation will accelerate industrial development and contribute to job creation and sustainable infrastructure growth.

Claire Jarratt from the Private Infrastructure Development Group welcomed the move as a milestone for the REIT instrument in East Africa.

Ross Ferguson of MOBILIST highlighted how such listings help direct long-term capital to productive sectors and reduce pension funds dependence on government debt.

Nairobi Securities Exchange chief executive officer Frank Mwiti described the listing as a historic milestone. He said the introduction of a dollar-denominated industrial REIT offers investors stable exposure to Africa logistics and industrial growth story.

This development is expected to strengthen Kenya position as a regional industrial hub while attracting more quality international capital into critical infrastructure projects.