African Logistics Properties’ dollar-denominated industrial real estate investment trust has secured $29.5 million through a restricted offer that closed last month, achieving 98.5% subscription and paving the way for a Nairobi Securities Exchange listing amid growing demand for logistics assets in East Africa.
The ALP Industrial REIT offered 30 million units at $1 each—equivalent to about 129 Kenyan shillings based on current rates—targeting high-net-worth individuals and sophisticated investors with a minimum investment of 5 million shillings. The offer, which opened in mid-December 2025 and closed Feb. 27, 2026, fell just short of its $30 million goal but exceeded expectations with an overall subscription rate of 115.17% when including a $5 million commitment from infrastructure firm InfraCo for future assets.
Backed by modern warehousing facilities in Tatu City and Tilisi developments near Nairobi, the REIT marks East Africa’s first industrial-focused, U.S. dollar-denominated vehicle of its kind, approved by the Capital Markets Authority in December 2025. ALP, a developer specializing in grade-A logistics parks, aims to use the funds to expand institutional-grade warehousing amid Kenya’s booming e-commerce and supply chain sectors, driven by urbanization and regional trade.
“The restricted offer achieved a subscription rate of 98.5 percent,” ALP said in a statement, describing the result as evidence of strong investor appetite despite economic headwinds like high interest rates and political uncertainty ahead of 2027 elections. The REIT is structured as an income-focused vehicle, with plans to list on the NSE’s restricted board starting March 11, 2026, allowing for potential dividend payouts from rental yields in high-demand industrial spaces.
The offer included a “green shoe” option for an additional 30% of units, or 9 million more, to accommodate oversubscription. ALP transferred properties valued at up to $15 million into the REIT in exchange for 15 million units, bolstering its asset base.
Analysts view the near-full subscription as a positive signal for Kenya’s nascent REIT market, which has struggled with low uptake in the past but could benefit from dollar-denominated stability amid shilling volatility. However, the deal comes amid internal challenges for ALP, including a lawsuit filed by former executive Asbury Maruza Chikwanha seeking $2.8 million over alleged unfair dismissal and denied equity in related projects, though the company denies the claims.
With Kenya’s real estate sector trending toward satellite town expansions and infrastructure-linked investments, the ALP REIT’s focus on logistics could capitalize on rising diaspora remittances and foreign interest, potentially setting a benchmark for similar funds in the region.
