The Private Infrastructure Development Group (PIDG) has announced an investment of Kshs 1.95 billion ($15 million) into Africa Logistics Properties’ (ALP) dollar-denominated Industrial Income Property Fund (IPF), positioning itself as the anchor investor in East Africa’s first industrial Real Estate Investment Trust (REIT).
Backed by six governments—including the United Kingdom, Netherlands, Switzerland, Australia, Sweden, and Canada—PIDG’s investment will be channeled through its project development arm, InfraCo, subject to the successful completion of ALP’s ongoing capital raise.
Unlocking Industrial Growth Through REITs
Approved by the Capital Markets Authority (CMA) in December 2025, the ALP REIT marks a milestone for Kenya’s property sector. It offers institutional investors access to stable, dollar-denominated returns from income-generating industrial assets such as warehouses and logistics parks.
The fund will initially support ALP’s flagship developments: 35,000 square metres at ALP North in Tatu City and 20,000 square metres at ALP West in Tilisi.
Raghav Gandhi, CEO of ALP, emphasized the REIT’s potential to catalyze infrastructure investment:
“The ALP REIT will give institutional investors confidence to invest in infrastructure assets while supporting the expansion of modern warehousing in Kenya.”
Institutional Confidence and Sustainable Design
Claire Jarratt, PIDG’s Head of Investment Management for InfraCo, noted the group’s strategic intent:
“We are pleased to extend our support into the industrial real estate sector and help unlock long-term investment.”
The investment is expected to attract further capital from pension funds, insurance firms, and mutual funds, addressing Kenya’s rising demand for efficient, sustainable industrial space. ALP’s facilities are certified under IFC EDGE standards, offering energy-efficient, environmentally friendly solutions that reduce operating costs and boost productivity.
A Turning Point for Kenya’s REITs Market
This move signals growing confidence in Kenya’s REITs sector as a scalable investment platform. It reflects a shift from traditional office and retail assets toward logistics and warehousing—property classes with resilient demand and long-term income potential.
Institutional participation is set to enhance market credibility, improve liquidity, and position REITs as efficient capital-raising tools for infrastructure development.
As Cytonn Investments observes:
“The investment highlights a gradual maturation of Kenya’s REITs sector, where diversified property assets and institutional capital are beginning to converge.”
With PIDG’s backing, the ALP REIT is poised to deepen Kenya’s capital markets, expand real estate financing options, and establish industrial REITs as a cornerstone of the country’s investment landscape.
