CASE STUDY
Africa Logistics Properties (ALP) REIT
CATEGORY
Supply; Demand
Capital market tool
Exit Mobilisation; Anchoring
Geography
Kenya
LISTING EXCHANGE
Nairobi Securities Exchange
SECTOR
Real Estate; Logistics and Warehousing
DFI / DONOR INTERVENTION
BII; IFC; InfraCo Africa and MOBILIST (USD 24 million combined)
TRANSACTION SIZE
USD 39.95 million
TRANSACTION YEAR
2026
Structure and Capital Market Tool
ALP REIT was listed on the Main Investment Market segment of the Nairobi Securities Exchange (NSE) in March 2026, with a total listing value of USD 39.95 million. InfraCo Africa and the UK government's MOBILIST programme invested USD 24 million in total, building on earlier investment from BII that had been key to ALP's growth. The listing introduced both a new asset class (industrial real estate) and a new currency denomination to Kenya's public markets.
ALP seeded the REIT with USD 10.4 million in assets, with USD 10 million coming from domestic and regional institutional investors and high-net-worth individuals, in addition to InfraCo Africa and MOBILIST.
The listing was oversubscribed by 115% and gave early-stage real estate development investors a route to exit, transferring assets to long-term institutional investors seeking stable income and releasing capital to ALP for further logistics development across Kenya. It also brought several firsts: the first restricted listing on the NSE, the first via the exchange's Sustainable Finance Centre of Excellence, and Kenya's first USD-denominated listed security. Issuing units in dollars matched the REIT's funding to its revenue base, gave local investors a way to manage currency risk, and opened the vehicle to international investors, setting a precedent for future issuances and widening the range of investable products in the market.
Background and Market Context
Founded in 2016, Africa Logistics Properties (ALP) is a specialist real estate firm that develops and manages modern warehousing across East Africa. The company received equity investment from British International Investment (BII) and the International Finance Corporation (IFC) in 2017, supporting the development of a portfolio of large-scale, modern logistics facilities built to IFC EDGE Advanced green-building standards.
Its real estate investment trust (REIT) listing came at a pivotal moment for Kenya's capital markets, which had seen very few main market listings over the preceding years. Declining interest rates and improving economic stability have renewed the potential for public market activity, while domestic institutional investors seek diversification beyond the government bonds that dominate listed options. Kenyan pension funds manage some USD 19–20 billion (KES 2.5 trillion) in long-term capital, but regulatory requirements to invest primarily in listed instruments have limited their ability to deploy capital in the real economy because of a shortage of new listings.
Development Impact
High-quality warehousing is a critical component of economic development that enables businesses to scale, operate efficiently and build reliable distribution networks. Much of Kenya's existing stock consists of informal 'godowns', which are typically small-scale, poorly designed, and lack adequate security and infrastructure. This raises storage costs, reduces efficiency and leaves goods exposed to damage and theft. ALP's facilities are built to international standards to offer better safety, capacity and operational performance.
The ALP REIT provided Kenya's growing local institutional investor base with new, real-economy investment opportunities that would provide competitive returns, giving them access to stabilised, income-generating logistics assets while supporting the region's economic growth. The resulting market development in the NSE strengthened the connective tissue between Kenya's stock exchange and its investor base and deepened the market.
With equity from BII and IFC early in its development, and the subsequent REIT listing, the ALP case illustrates a supply-side intervention in which development finance contributes to the supply of assets in local markets. On the other hand, the anchoring of ALP REIT by InfraCo Africa and MOBILIST is a classic example of a demand-side intervention, providing the credibility that can catalyse broader participation from other investors.