Investment group commits Sh2b for new industrial real estate investment trust

Financial Standard
By Graham Kajilwa | Jan 20, 2026
ALP Reit has invested in ALP North Park in Tatu City. [File, Standard]

The Private Infrastructure Development Group (PIDG) has approved an investment to anchor the upcoming ALP Industrial Real Estate Investment Trust (ALP Reit), sponsored by Africa Logistics Properties Holdings Ltd (ALPH), marking a significant milestone in the development of Kenya’s institutional-grade industrial real estate sector.  

Through its project development solution, InfraCo, PIDG has committed to invest up to $15 million (Sh1.95 billion) as an anchor investor in the ALP Reit, subject to regulatory conditions and the successful completion of the ongoing capital raise.

Approved by the Capital Markets Authority in December 2025, the new ALP Reit is the first industrial Income Reit (I-Reit) in East Africa, pioneering the use of the tax-efficient instrument in Kenya’s industrial real estate sector.

The ALP Reit began issuing units on December 17, 2025 to finance its seed assets. These will be ALP’s existing industrial parks, which include 35,000 square metres at ALP North Park in Tatu City, and 20,000 square metres at ALP West Park in Tilisi.

The new facilities will be transferred to the I-Reit once they become stabilised. Business tenants of the company’s modern, IFC EDGE-certified warehousing facilities benefit from enhanced business productivity and improved inventory management.

“Providing investors with stable, USD-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. We look forward to working alongside PIDG colleagues at our upcoming roadshow events,” said ALPH Chief Executive Raghav Gandhi.

PIDG Head of Investment Management for InfraCo Claire Jarratt said, “Having anchored the establishment of Reits for affordable housing in Nairobi, PIDG is familiar with the Reit structure, and we know that it works. We are delighted to expand this expertise into the industrial real estate sector by supporting ALP to develop its ALP Reit.”

By building investor confidence, it is anticipated that the ALP Reit will unlock untapped pools of investment from pension, mutual and life funds, supporting the growth of Kenya’s industrial real estate sector. ALP focusses on investing in, developing, and managing modern institutional-grade industrial properties across East Africa.

Share this story
What Kenya must do to return to HSBC World Rugby SVNS Series
Kenya will next month start the tedious journey of returning to the main HSBC World Rugby SVNS Series, where Shujaa used to showcase the pride of our nation with zeal and zest.
Joyce Wanjiru: This is the reason why I joined the paid ranks
Sensational Joyce Wanjiru of Kiambu Golf Club is the latest entrant into the pro ranks in the Kenyan golf market, making her one of the only two ladies in the paid ranks.
Joyce Wanjiru: New kid on the block explains why she joined paid ranks
Sensati]onal Joyce Wanjiru of Kiambu Golf Club is the latest entrant into the pro ranks in the Kenyan golf market
A to Z of 2025 Africa Cup of Nations
Pape Gueye scored the only goal of the final against Morocco in extra time on Sunday to bring the Africa Cup of Nations trophy back to Senegal four years after their first triumph.
Infantino condemns Senegal for 'unacceptable scenes' in AFCON final
FIFA President Gianni Infantino condemned "some Senegal players" for the "unacceptable scenes" which overshadowed their victory in Sunday's Africa Cup of Nations final.
.
RECOMMENDED NEWS