ALP REIT Raises $34. 5 M Oversubscribed Offer

Africa Logistics Properties Holdings Limited (ALP) has recently raised $34. 55 million via its ALP Industrial Real Estate Investment Trust (ALP REIT) as the offer saw an oversubscription of 115 per cent, which is a clear indication of investors’ strong confidence in Kenya’s industrial real estate sector.

The raising of funds also consists of a further $5 million commitment that the REIT will use to grow its property portfolio. Besides, the ALP REIT will be the first dollar-denominated security to be listed and traded on the Nairobi Securities Exchange (NSE), thereby heralding a great milestone for Kenya’s capital markets.

Sound Investor Engagement Demand for the offer came from a wide spectrum of investors, including development finance institutions, domestic and regional institutional investors, and high, net, worth individuals.

All the applicants will be fully allotted their units because of the high demand, the company has revealed. According to Raghav Gandhi, Chief Executive Officer of ALP, the feedback from investors signifies the increasing trust of the investors not only with the company but also with the larger investment environment of the region.

“We are pleased that the market responded very positively to our offer, demonstrating confidence not only in the work we continue to do but also in the investment opportunities available in this region. As the first industrial REIT in East Africa, we are very encouraged by this outcome,” he said

Major contributors to the REIT’s capital include the Private Infrastructure Development Group (PIDG) through its project development division InfraCo, and MOBILIST, the UK government’s major public markets programme.

InfraCo has promised another $5 million, which will be spent as the ALP REIT grows. The involvement of these investors is a clear signal of the world’s faith not only in the Kenyan industrial real estate market but also in ALP’s investment model and the management team’s proven track record.

ALP REIT invests in and manages high-quality industrial properties across Kenya, primarily modern warehouses that play a key role in logistics and manufacturing. Besides abiding by the ALP REIT regulations, the fund is expected to pay out at least 80 per cent of its distributable income to investors, which makes it a great vehicle for those seeking a steady income.

ALP REIT, up to now, has been running institutional, grade warehousing centres in the areas of Tilisi and Tatu City. These sites are situated on key transport routes and are near industrial areas.

The warehouses are equipped with large storage areas and state, of, the, art loading facilities and are constructed to IFC EDGE Advanced green building standards, which is an indicator of environmentally sustainable industrial development.

The REIT is under the stewardship of ALP REIT Management Limited, which the Capital Markets licensed in November. Co-Operative Bank of Kenya serves as the trustee; Dyer & Blair Investment Bank is the transaction advisor, lead placing agent, and sponsoring broker; Deloitte & Touche acts as auditor; CBRE Excellerate provides property valuations; and Image Registrars is the unit registrar.