The Private Infrastructure Development Group (PIDG) is anchoring East Africa’s first industrial real estate investment trust, a move designed to deepen Kenya’s capital markets and address a chronic shortage of high-spec logistics space.
Through its development arm, InfraCo, PIDG has committed up to $15 million to the ALP Industrial REIT (ALP REIT). The vehicle, sponsored by Africa Logistics Properties Holdings Ltd (ALPH), aims to institutionalise an asset class that has long remained fragmented and under-capitalised across the region.
The launch follows approval from Kenya’s Capital Markets Authority in late 2025. By utilising an Income REIT (I-REIT) structure, the fund offers a tax-efficient bridge between international private equity and local institutional liquidity.
For Kenyan pension funds and life insurers—traditionally overweight in government paper and volatile equities—the REIT provides a rare opening into dollar-denominated, infrastructure-backed yields.
“Providing investors with stable, USD-denominated returns, the ALP REIT will increase the confidence of institutional investors to diversify their portfolios into the infrastructure asset class,” said Raghav Gandhi, Chief Executive Officer of ALPH.
The REIT’s initial portfolio comprises 55,000 square metres of “Grade A” warehousing across two flagship sites:
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ALP North Park (Tatu City): 35,000 square metres.
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ALP West Park (Tilisi): 20,000 square metres.
These facilities carry IFC EDGE green building certifications, a crucial requirement for modern global supply chains looking to meet ESG mandates. The strategy is to transfer additional “stabilised” assets into the REIT as they reach full occupancy, creating a pipeline of yield-generating properties.
The investment signals PIDG’s broader strategy of using blended finance to “de-risk” nascent financial instruments in emerging markets. The group previously employed a similar blueprint to jumpstart Nairobi’s affordable housing sector.
“We know that the REIT structure works,” said Claire Jarratt, PIDG’s Head of Investment Management for InfraCo. “We are delighted to expand this expertise into the industrial sector.”
As ALPH begins its investor roadshow, the success of the raise will be viewed as a litmus test for Kenya’s ability to attract long-term private capital into the industrial backbone of the “Silicon Savannah.”
