In addition to the ongoing capital raise being completed successfully, PIDG will serve as an anchor investor in the ALP REIT through the investment, which was made through InfraCo, the company’s project development division.
The first industrial income Real Estate Investment Trust in East Africa, the ALP REIT was approved by the Capital Markets Authority (CMA) and enables investors to generate rental income from industrial buildings such logistics parks and warehouses.
ALP’s current industrial parks, which are 20,000 square meters at ALP West in Tilisi and 35,000 square meters at ALP North in Tatu City, would be financed by money raised through the REIT. Once they are fully functioning, further facilities will be added to the REIT.
According to ALP CEO Raghav Gandhi, the REIT would assist expand Kenya’s industrial real estate sector while providing investors with steady returns denominated in dollars.
“The ALP REIT will give institutional investors confidence to invest in infrastructure assets while supporting the expansion of modern warehousing in Kenya,” Gandhi stated.
According to Claire Jarratt, PIDG Head of Investment Management for InfraCo, the organization is expanding on its expertise in assisting REITs in Kenya.
“We are pleased to extend our support into the industrial real estate sector and help unlock long-term investment,” she stated.
The investment is anticipated to draw further funding from mutual funds, insurance firms, and pension funds, assisting in meeting Kenya’s need for contemporary, effective, and sustainable industrial space.
ALP’s warehouses are certified in accordance with IFC EDGE requirements, providing companies with eco-friendly and energy-efficient facilities that boost output and save operational expenses.
