DOB Equity, a Dutch family office, will invest up to $4m in Africa Logistics Properties Holding (ALP), a developer and manager of modern grade-A warehousing in Kenya.

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.

The investment will allow the firm to build warehousing developments and expand its operations across East Africa.

Toby Selman, CEO and Co-Founder of ALP, said: “As ALP are also targeting Kenyan growth 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.”

Brigit van Dijk – van de Reijt, CEO at DOB Equity, said: “ALP brings 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,” she said.

“ALP helps to drive logistical costs down by providing grade-A warehousing facilities which create built-for-purpose supply chain infrastructure to drive efficiencies that should lead to lower prices for consumers. ALP helps enable companies to focus on their core competencies instead of having to construct, manage, and maintain warehouses on their own. For SME’s in particular, their services will create instant growth opportunities,” she added.

According to DOB Equity, 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 said 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.

Saskia van der Mast, Investment Manager at DOB Equity, added: “We believe Kenya is ideally located as an entry point and hub for eastern and central Africa to benefit from the region’s industrialization, growing trade, and expanding consumer markets.”

“DOB Equity is investing in a team led by Toby Selman that has extensive emerging markets experience in warehouse development, which will be able to make the most of this opportunity,” she added.