Africa Logistics Properties

East Africa,Africa Business services

Africa Logistics Properties Holding (ALP) is a Nairobi-based greenfield commercial property developer that acquires, develops, and manages modern logistics and industrial real estate facilities across East Africa.

Our investment

In March 2017, CDC committed to invest up to $25 million in the firm as part of a $60 million fundraising. Other investors include Maris Capital, the International Finance Corporation (IFC), Mbuyu Capital and DOB Equity.

The investment will be used for ALP’s developments in Nairobi, the trading hub of East Africa, where the lack of quality warehousing space has constrained business growth.

Expected impact

The cost of moving goods in Africa is estimated to be up to two or three times higher than in developed countries and transport costs can count for as much as 50-75 per cent of the retail price of goods.

Modern logistics properties are currently scarce in most sub-Saharan Africa. There is a growing need for quality new developments as modern warehousing allows for the consolidation of fragmented transport, distribution and inventory facilities.

Quality warehousing improves operational efficiencies by reducing waste from poor storage, increasing the speed of product delivery and improving product security.

In addition, with access to quality logistics, global companies will find it easier to ramp up businesses on the continent.

Environmental and social aspects

We continue to help ALP to deliver modern logistics parks that meet best practice environmental and social risk management standards.

The company is working towards integrating IFC EDGE green buildings standards into current - and future - warehouse developments.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
Africa, East Africa
Countries:
Kenya
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.

:
Business services
Website:
http://www.africawarehouses.com/
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Direct Equity
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
March 2017
Amount

For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that CDC has committed to the fund.

:
$25m
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
Mauritius