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Dollar godown property fund taps Sh3.8bn in restricted offer
ALP has two warehouse properties in Limuru’s Tilisi and Tatu City in Kiambu. The extra investment by InfraCo will raise the total proceeds to Sh4.46 billion ($34.5 million).
African Logistics Properties (ALP) dollar-denominated warehouse property fund has raised Sh3.81 billion ($29.5 million) following the close of a restricted offer, narrowly missing its target of 3.87 billion ($30 million).
However, one of the backers of the fund, InfraCo Africa Investment, has committed to invest an additional Sh646.1 million ($5 million) in the acquisition of an unnamed property by the fund.
ALP has two warehouse properties in Limuru’s Tilisi and Tatu City in Kiambu. The extra investment by InfraCo will raise the total proceeds to Sh4.46 billion ($34.5 million).
“The restricted offer achieved a subscription rate of 98.5 percent. Combined with InfraCo’s commitment to invest an additional $5 million for a pipeline asset, the offering has achieved an overall subscription of 115.17 percent,” said ALP in a statement.
The ALP Reit offered 30 million units or shares for $1 (Sh129.20) each, with high-net-worth and sophisticated investors applying to buy 29.5 million units.
The fund became the first dollar-denominated commercial property real estate investment trust (Reit) in Kenya. The offer, which was limited to sophisticated investors who could sink a minimum of Sh5 million in the deal, closed on February 27 after opening in December.
The promoter of the Reit, the African Logistics Properties Holdings Limited, retained a 20 percent stake in the investment vehicle represented by 15 million units.
The Private Infrastructure Development Group, a Western-founded infrastructure fund, purchased half of the units on offer, making it an anchor investor in the Reit.
The fund, backed by six governments including the UK, the Netherlands, Switzerland, Australia, Sweden and Canada, invested Sh1.9 billion ($15 million). Other investors in the offer were InfraCo and Mobilist. The Reit will list and start trading on the Nairobi Securities Exchange on March 11.
“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,” said ALP Chief Executive Raghav Gandhi.
