Kenya has welcomed the birth of its first industrial Income Real Estate Investment Trust (I-REIT), a pioneering initiative set to reshape the region’s infrastructure investment scene. The Private Infrastructure Development Group (PIDG), through its project development arm InfraCo, has committed to anchor the upcoming ALP Industrial Real Estate Investment Trust with an investment of up to $15 million.
This marks a significant confidence in the growing industrial real estate sector and unlocks a new channel for institutional capital. According to Raghav Gandhi, Chief Executive Officer of ALPH, the trust will bolster investor confidence.
Approved by Kenya’s Capital Markets Authority in early December 2025, the ALP REIT is a transformative step forward. The trust, sponsored by Africa Logistics Properties Holdings Ltd (ALPH), is the first of its kind in East Africa to leverage a tax-efficient REIT structure specifically for industrial assets. It began issuing units on 17th December 2025, aiming to finance its initial portfolio, known as seed assets.
These include ALP’s existing, high-standard logistics parks: the 35,000-square-metre ALP North Park in Tatu City and the 20,000-square-metre ALP West Park in Tilisi. As new, stabilized facilities are developed, they too will be folded into the REIT, creating a growing pipeline of institutional-grade warehousing space.
With the ALP REIT offering investors stable, U.S. dollar-denominated returns, it is designed to attract pension funds, mutual funds, and life insurance companies, investment pools that have historically been cautious about direct exposure to infrastructure and industrial property.
“The ALP REIT will increase the confidence of institutional investors to diversify their portfolios into the infrastructure asset class, whilst supporting the growth of Kenya’s industrial real estate sector. We look forward to working alongside PIDG colleagues at our upcoming roadshow events,” said Raghav Gandhi.
PIDG’s involvement brings proven expertise to the table. Having previously supported the establishment of affordable housing REITs in Nairobi, the group is well-versed in the model’s potential. According to Claire Jarratt, PIDG Head of Investment Management for InfraCo, this strategic partnership aligns with the company’s economic development goals.
“Having anchored the establishment of REITs for affordable housing in Nairobi, PIDG is familiar with the REIT structure, and we know that it works. We are delighted to expand this expertise into the industrial real estate sector by supporting ALP to develop its ALP REIT,” said Claire Jarratt.
The launch of this ALP REIT promises to channel much-needed long-term capital into modern, IFC EDGE-certified logistics facilities that enhance business productivity and inventory management for tenants. Reducing the gap between global institutional investors and industrial growth, this initiative is poised to unlock sustainable investment, drive economic development, and enhance the country’s position as a regional logistics and investment hub.
