The Private Infrastructure Development Group has committed up to USD 15 million, equivalent to Sh2.33 billion, to the ALP Industrial Real Estate Investment Trust, marking a major milestone for Kenya’s industrial property market. The investment positions PIDG as an anchor investor in the REIT, which is sponsored by Africa Logistics Properties Holdings Ltd.
The funding will be made through PIDG’s project development arm, InfraCo, and is subject to standard conditions as well as the successful conclusion of the ongoing capital raise for the REIT.
Approved by the Capital Markets Authority on 8 December 2025, the ALP REIT holds the distinction of being the first industrial income REIT in East Africa. It introduces a tax-efficient investment structure to Kenya’s industrial real estate sector, opening the market to a broader pool of institutional investors.
The REIT began issuing units on 17 December 2025 to fund its initial assets. These include existing industrial parks owned by ALPH, covering 35,000 square metres at ALP North Park in Tatu City and 20,000 square metres at ALP West Park in Tilisi.
Further properties are expected to be transferred into the REIT once they reach stable operations. These facilities offer modern warehousing solutions that are IFC EDGE certified, designed to improve efficiency for businesses and support better inventory management for tenants.
Commenting on the investment, Raghav Gandhi, Chief Executive Officer of ALPH, said, “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.”
From PIDG’s perspective, the deal builds on its prior experience with similar investment structures. Claire Jarratt, PIDG Head of Investment Management for InfraCo, 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.”
Market observers say the participation of PIDG as an anchor investor is expected to strengthen confidence among institutional investors. This could help unlock new sources of capital from pension funds, mutual funds, and life insurance funds that have previously had limited exposure to industrial real estate.
Analysts also note that the REIT structure provides a stable, well-regulated, and tax-efficient investment route into high-quality industrial assets, while supporting the continued expansion of Kenya’s logistics and manufacturing infrastructure.
The launch of the ALP REIT is seen as a key step toward formalizing industrial real estate investment in Kenya. It offers both local and international investors a secure and scalable platform, while contributing to the country’s broader economic growth goals.
With its early backing and clear structure, the ALP REIT is expected to serve as a reference point for future industrial infrastructure projects across East Africa.
