By Jacktone Lawi
Dutch firm DOB equity has announced an investment of Ksh.400 million (US$4 million) into Africa Logistics Properties Holding (ALP), to allow the firm to build warehousing developments and expand its operations across East Africa.
ALP is a developer and manager of modern grade-A warehousing in Kenya and across Africa and will be looking to improve logistics and operating efficiencies with the funding.
DOB Equity will invest alongside CDC Group, the UK’s development finance institution, IFC, the private sector focused global development institution & member of the World Bank Group, Co-Founder Maris, a diversified investment group operating across African frontier markets, Mbuyu Capital, UK asset manager and other local and international investors
In the present state the East African warehousing sector is fragmented and lacks industrial quality
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.
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 the CEO at DOB Equity, says that 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.”
“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.”
Toby Selman, CEO and Co-Founder of ALP, said they 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.”