Africa Logistics Properties (ALP) has announced the results of the restricted offer for its industrial real estate investment trust, revealing strong investor participation that saw the offer nearly fully subscribed ahead of the trust’s anticipated listing on the Nairobi Securities Exchange.
The restricted offer for the ALP Industrial Real Estate Investment Trust (ALP REIT) raised approximately $29.55 million, close to the $30 million target, according to a public announcement issued by the REIT’s trustee.
The capital raise marks a significant milestone for the logistics real estate developer as it seeks to deepen institutional investment in Kenya’s fast-growing industrial and logistics property segment.
The REIT was structured and offered in accordance with the Capital Markets Act and the Capital Markets (Public Offers, Listings and Disclosures) Regulations 2023, as well as the Capital Markets (Collective Investment Schemes) Regulations 2013.
Strong Investor Demand For Logistics Property
According to the announcement, the restricted offer attracted substantial demand from investors, reflecting growing interest in income-generating industrial property assets.
The trust raised $29.55 million through the issuance of 29.25 million new units priced at $1.20 per unit, nearly reaching the targeted $30 million subscription amount.
The results indicate strong institutional appetite for exposure to logistics infrastructure and modern warehouse developments, which have become increasingly important as Kenya positions itself as a regional trade and distribution hub.
Africa Logistics Properties noted that the restricted offer achieved over 98 percent subscription, a result the promoter described as evidence of the attractiveness of the underlying logistics property portfolio.
The fundraising outcome was further strengthened by an additional $5 million investment commitment from Infraco Africa Investment Limited, which is expected to support the trust’s future property acquisition pipeline.
Allocation Of Units
Under the terms of the restricted offer, the promoter allocated new units to participating investors in line with the allocation policy outlined in the offering memorandum.
All valid applications received during the offer period were fully allocated, allowing investors to receive the total number of units they applied for.
In addition to public investors, the promoter also subscribed for a portion of units in exchange for transferring income-generating assets into the REIT structure.
This transfer forms part of the asset base that will underpin the trust’s rental income and distribution strategy once listed.
Following completion of the restricted offer, the trust will have 39.2 million units in issue, which are expected to be listed and traded on the Nairobi Securities Exchange.
Pipeline Asset Transfer Underway
The company also provided an update on a key property pipeline asset known as ALP North Three, which is expected to be transferred into the REIT portfolio.
According to the announcement, the process of obtaining an updated valuation and completing the required regulatory and statutory procedures for the property transfer is currently underway.
The transfer of ALP North Three into the REIT is expected to occur once the necessary approvals and conditions are met.
The promoter said the addition of the asset would further strengthen the REIT’s income-generating portfolio and expand its exposure to Kenya’s growing logistics and industrial real estate sector.
Modern logistics parks and warehouse facilities have become increasingly important as Kenya’s manufacturing sector expands and regional trade corridors continue to develop.
Listing Preparations On The NSE
Following completion of the restricted offer, the trust is now preparing for the next stage of the transaction, including settlement and listing procedures.
Key post-offer milestones include the processing of investor allocations, electronic crediting of units to investor accounts within the Central Depository System and final preparations for listing.
The REIT units are expected to commence trading on the Nairobi Securities Exchange once the listing process is completed.
The listing will provide investors with an opportunity to trade the units on the secondary market while allowing the trust to raise additional capital in the future through further property acquisitions.
Trustee And Advisors
The trustee for the ALP Industrial REIT is Co-operative Bank of Kenya, which is responsible for overseeing the trust structure and safeguarding investor interests.
Several financial and professional advisory firms were involved in structuring and executing the transaction, including investment advisors, legal advisors, property consultants and registrars.
The promoter expressed appreciation to investors who participated in the restricted offer and reaffirmed its commitment to developing high-quality logistics real estate assets across the region.
Growing Role Of REITs In Kenya’s Property Market
The ALP Industrial REIT transaction comes at a time when Kenya’s capital markets regulators are seeking to expand the use of REIT structures to channel investment into the country’s property sector.
Real estate investment trusts allow investors to pool capital to acquire income-generating property assets, while offering liquidity through stock exchange trading.
Despite regulatory support from the Capital Markets Authority, Kenya’s REIT market has historically seen slow growth compared to other global markets.
Industry analysts say industrial and logistics real estate could play a key role in expanding the sector due to its strong demand fundamentals.
E-commerce growth, regional trade expansion, manufacturing investment and supply chain modernization are driving increased demand for modern warehouse and distribution facilities.
Developers are increasingly targeting institutional investors looking for stable rental income and exposure to infrastructure-linked real estate.
ALP has positioned itself as a specialist developer in this segment, focusing on large-scale logistics parks designed to serve manufacturers, distributors and multinational companies operating in East Africa.
The listing of the ALP Industrial REIT is expected to add another investment option for institutional investors seeking exposure to Kenya’s real estate market through the capital markets.
If successful, it could also provide a model for other property developers seeking to unlock capital tied up in income-generating assets.
