Africa Logistics Properties Holdings (ALPH), a specialist integrated firm that invests, develops and manages institutional-grade industrial real estate in Kenya, will now offer units to prospective investors through a Restricted Offer.
This is after obtaining approval from the Capital Markets Authority (CMA) to set up a USD-denominated Income Real Estate Investment Trust (I-REIT) that will see it distribute at least 80 per cent of its distributable income to investors.
The ALP REIT will not only be the first USD issuance to list on the Nairobi Securities Exchange (NSE) but also the first industrial REIT in East Africa.
The ALP REIT has also been admitted to the NSE’s Sustainable Finance Centre of Excellence, a programme funded by FSD Kenya to support green issuances.
It will issue up to 45,000,000 units each comprising of up to 15,000,000 units at an offer price of $1 issued to ALPH in exchange for property transfer into the REIT and a Restricted Offer of up to 30,000,000 units at an offer price of $1 per unit with a green shoe option of up to 30% of the Restricted Offer (equivalent to 9 million units).
ALPH as Promoter will maintain a minimum unitholding of 20 per cent.
Africa Logistics Properties CEO Raghav Gandhi said the CMA's approval marks a significant milestone for the real estate industry.
“The transaction will be an Income REIT, which will be attractive to investors looking for stable dollar returns and exposure to the growing industrial real estate sector. This is a strategic landmark for us as we look forward not only to expanding our issuance in the NSE but also to growing our footprint in the region.”
The REIT was approved on December 8, with the opening date for the Restricted Offer on December 17 and the closing date on February 26, next year.
The listing date and commencement of trading of the units are expected to be on
Since 2016, ALP has developed two industrial parks in Kenya: 50,000 square metres in ALP North in Tatu City and 20,000 square metres in ALP West located in Tilisi.
