DOB Equity, a leading Dutch family office, will invest up to $4 million (Ksh400 million) in Africa Logistics Properties Holding (ALP), a developer and manager of modern grade-A warehousing in Kenya.
The funds will help the firm to build warehousing developments and expand its operations across East Africa.
DOB Equity says that a well-functioning logistics sector is crucial for economic development. Currently, both international and local companies are being constrained by a lack of modern, high quality and efficient warehousing across the region.
DOB Equity explains that ALP seeks to tap into this underdeveloped warehousing sector by providing grade-A, international standard warehousing and offering tenants access to international standard distribution and logistics services.
Brigit van Dijk – van de Reijt, CEO at DOB Equity, says that the progamme will bring an innovative solution to the warehousing sector in Kenya. “The warehousing supply in East Africa is still fragmented, often located in congested areas, and lacking in overall industrial quality. It can be unsuitable for occupiers because of high operational and cost inefficiencies that hamper international companies looking to set up local operations, and prevent local SME’s to reach scale,” says Van Dijk.
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DOB Equity will invest alongside CDC Group, the UK’s development finance institution, IFC, the private sector focused global development institution and member of the World Bank Group, and Co-Founder Maris, a diversified investment group operating across African frontier markets, Mbuyu Capital, the UK asset manager and other local and international investors.
Saskia van der Mast, Investment Manager at DOB Equity says Kenya is ideally located as an entry point and hub for eastern and central Africa and thus in a good position to benefit from the region’s industrialization, growing trade, and expanding consumer markets.
Toby Selman, CEO and Co-Founder of ALP, alluded that ALP is also targeting Kenyan growing businesses in addition to larger, international companies. “We are pleased to have DOB Equity on board as they have a strong foothold in the local SME market, which will benefit us going forward.”
[crp]
