Private Infrastructure Development Group (PIDG) has approved an investment of up to $15m to anchor a new industrial real estate investment trust in Kenya, signalling growing institutional interest in the country’s logistics and warehousing sector.
The commitment will support the launch of the ALP Industrial Real Estate Investment Trust, sponsored by Africa Logistics Properties Holdings Ltd, and will be made through PIDG’s project development arm, InfraCo. The investment is subject to standard conditions and the successful completion of the REIT’s ongoing capital raise.
Approved by Kenya’s Capital Markets Authority on 8 December 2025, the vehicle is the first industrial income REIT in East Africa, introducing a tax efficient structure that has previously been used mainly in residential and commercial property.
The ALP REIT began issuing units on 17 December to fund its initial portfolio, which will consist of completed logistics assets owned by Africa Logistics Properties. These include about 35,000 square metres at ALP North Park in Tatu City and roughly 20,000 square metres at ALP West Park in Tilisi. Additional developments will be transferred into the trust once they reach operational stability.
Africa Logistics Properties focuses on modern warehousing facilities designed to international standards, with tenants benefiting from improved inventory management and lower operating costs through energy and water efficiency measures.
“Providing investors with stable, US dollar denominated returns, the ALP REIT will increase the confidence of institutional investors to diversify their portfolios into the infrastructure asset class, whilst supporting the growth of Kenya’s industrial real estate sector,” said Raghav Gandhi, chief executive officer of Africa Logistics Properties Holdings. He added that the company would work with PIDG during upcoming investor roadshows.
Claire Jarratt, head of investment management for InfraCo at PIDG, said the group’s prior experience anchoring affordable housing REITs in Nairobi had demonstrated the effectiveness of the structure. “We are delighted to expand this expertise into the industrial real estate sector by supporting ALP to develop its ALP REIT,” she said.
Market participants expect the transaction to help unlock capital from pension funds, mutual funds and life insurers, pools of money that have so far had limited exposure to Kenya’s industrial property market. Demand for modern logistics space has risen alongside growth in manufacturing, retail distribution and regional trade, but institutional funding has lagged behind.
PIDG is backed by several Western governments and focuses on mobilising private capital into infrastructure projects across Africa and parts of Asia. Africa Logistics Properties, founded in 2016, has developed two major logistics parks in Kenya and is currently building an additional 10,500 square metre facility scheduled for completion in 2026.
If successful, the ALP REIT would become the first green industrial REIT to list on the Nairobi Securities Exchange, potentially setting a precedent for further capital market financing of infrastructure linked real assets in the region.
