KEY POINTS
- Kenya approves East Africa’s first dollar denominated industrial REIT.
- Dollar denominated industrial REIT reduces currency risk for investors.
- Listing adds depth to the Nairobi Securities Exchange.
Africa Logistics Properties Holdings Ltd. has secured regulatory approval to list East Africa’s first U.S. dollar–denominated industrial real estate investment trust in Nairobi, marking a milestone for Kenya’s capital markets and the region’s logistics property sector.
Kenya’s Capital Markets Authority has cleared the establishment of the ALP Industrial Real Estate Investment Trust as an income REIT, allowing the developer to proceed with a restricted offer to professional investors. Once listed, the vehicle will become the first dollar-denominated security to trade on the Nairobi Securities Exchange and the region’s first listed industrial REIT.
The approval positions the market for a broader mix of investment products at a time when regulators are seeking to deepen capital markets and attract long term institutional capital.
Dollar-denominated industrial REIT expands market options
The dollar-denominated industrial REIT gives investors exposure to income-producing logistics assets while reducing foreign-exchange risk in an economy where most listed securities trade in local currency. Under Kenyan rules, the trust will distribute at least 80 percent of its distributable income to unit holders, aligning it with global income-focused REIT standards.
The NSE has also admitted the trust into its Sustainable Finance Centre of Excellence, highlighting its environmental positioning and backing from FSD Kenya. The structure is aimed for pension funds, insurance companies, and other professional investors that want predictable returns in dollars.
The deal would include up to 45 million pieces, each costing $1. Of this, 30 million units will be made available under the restricted offer, with a green shoe option for an additional 9 million units. Africa Logistics Properties will seed the trust by transferring completed assets in exchange for units and will retain a minimum 20 percent stake as promoter.
Dollar-denominated industrial REIT backs logistics growth
Founded by British born entrepreneur Toby Selman, Africa Logistics Properties entered Kenya in 2016 and has since developed more than 70,000 square metres of modern logistics and light industrial space. Its portfolio includes facilities at Tatu City and Tilisi, serving manufacturers, retailers and regional distributors.
According to Billionaires Africa, for the Nairobi Securities Exchange, the listing adds depth and diversification to the market. For Africa Logistics Properties, the REIT provides a platform to recycle capital, fund new developments and support expansion across East Africa’s growing logistics and industrial real estate sector.
