The Private Infrastructure Development Group (PIDG) has approved a key investment to anchor the upcoming ALP REIT, a move expected to strengthen the growth of Kenya’s institutional-grade industrial real estate sector.
Through its project development arm, InfraCo, PIDG has committed up to USD 15 million as an anchor investor in the ALP REIT, subject to standard conditions and the successful completion of the ongoing capital raise.The trust is sponsored by Africa Logistics Properties Holdings Ltd (ALPH).
The ALP REIT, which received approval from the Capital Markets Authority on December 8, 2025, is the first industrial Income Real Estate Investment Trust (I-REIT) in East Africa.
It introduces the use of a tax-efficient REIT structure within Kenya’s industrial real estate space.
The ALP REIT began issuing units on December 17 to finance its seed assets, which comprise ALP’s existing industrial parks. These include 35,000 square metres at ALP North Park in Tatu City and 20,000 square metres at ALP West Park in Tilisi.
Additional facilities will be transferred into the ALP REIT once they achieve operational stability.
Tenants operating from ALP’s modern, IFC EDGE-certified warehousing facilities benefit from improved productivity and better inventory management, reinforcing the appeal of assets held under the ALP REIT.
ALP REIT Seen as Confidence Builder for Investors
ALPH Chief Executive Officer Raghav Gandhi said the ALP REIT is designed to offer investors stable, USD-denominated returns, which could encourage institutional investors to diversify into infrastructure-related assets while supporting Kenya’s industrial real estate sector.
He added that the company looks forward to engaging investors alongside PIDG during upcoming roadshow events for the ALP REIT.
PIDG Head of Investment Management for InfraCo, Claire Jarratt, said the group’s experience in anchoring affordable housing REITs in Nairobi has demonstrated the effectiveness of the REIT model.
She noted that PIDG is pleased to extend this expertise into the industrial real estate market by supporting the development of the ALP REIT.
By strengthening investor confidence, stakeholders anticipate that the ALP REIT will help unlock previously untapped capital from pension funds, mutual funds, and life insurance funds, further driving the expansion of Kenya’s industrial real estate sector.
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