DOB Equity teams up with international consortium to invest in modernizing Kenya’s warehouse industry
In East Africa the warehousing sector is mainly fragmented, located in congested areas and lacking industrial quality
A well-functioning logistics sector is crucial for economic growth and development
DOB Equity, a leading Dutch family office, will be investing up to US$4 million in Africa Logistics Properties Holding (ALP), a developer and manager of modern grade-A warehousing. DOB will be investing alongside CDC Group, the UK’s development finance institution, IFC, a member of the World Bank Group and Nairobi based private investment company and co-founder Maris, among other local and international investors.
The investment will allow ALP to build developments in Nairobi, Kenya. A well-functioning logistics sector is crucial for economic development. Both international and local companies are currently constrained by lack of modern and quality warehousing. ALP seeks to tap into the underdeveloped warehousing sector by providing grade-A international standard warehousing and offering tenants access to international standard distribution and logistics services.
Brigit van Dijk, CEO DOB Equity says “In East Africa the warehousing supply is highly fragmented, located in congested areas and lacking industrial quality. It is unsuitable for occupiers due to high operational and cost inefficiencies hampering international companies to set up local operations. ALP brings an innovative solution to an underdeveloped sector that provides grade-A warehousing facilities ‘on-demand’ which will drive down logistics costs by increasing efficiencies in the supply chain resulting in lower prices for end-consumers. The services provided by ALP will enable companies to focus on their core competencies instead of having to construct, manage and maintain warehouses and logistics on their own. For SME’s, the service will create instant growth opportunities.”
Saskia van der Mast, Investment Manager at DOB adds “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 is investing in a team led by Toby Selman, with extensive emerging market experience in warehouse development, which we believe will be able to execute successfully on this opportunity.”
ALP CEO and Co-Founder, Toby Selman says “with ALP also targeting the Kenyan SME market, we are pleased to have DOB Equity on board as they have as strong foothold in this space which we expect to be beneficial for the company going forward.”