A South Africa-based logistics operator has launched a 103-acre product-specific warehouse development along Nairobi’s Eastern bypass eyeing bulk importation and repackaging business from increased intra-Africa trade.
Improvon Group chief executive Stefano Contardo confirmed breaking ground for the first 5,000 square metre warehouse development, Nairobi Gate Industrial Park, saying it had partnered with private equity fund Actis which sunk money to purchase the land as well as funding the development.
“Nairobi is vibrant and its links to other East African countries are efficient and diverse.
“Kenya’s business environment is conducive and has seen us set up shop fast compared to other markets we are eyeing in our planned expansion across Africa,” he said.
Actis Real Estate Head (East Africa) Koome Gikunda declined to disclose the value of the land as well as individual shareholding stakes by the two companies, saying Actis chose Improvon as a partner due to its vast experience in the business since launching its first logistics centre in South Africa in 1995.
Mr Gikunda said they spent four years holding discussions with manufacturers as well as repackaging firms where the identified a need for purpose-built warehouses.
“We are targeting manufacturers and importers that want Special Economic Zone hubs with customised warehouse facilities close to Jomo Kenyatta International Airport (JKIA), the Nairobi Inland Container Depot and easy access to Nairobi,” said Mr Gikunda.
Actis also owns Garden City Mall together with its residential complex and is currently developing high-end offices within the same facility.
The new development comes hardly a month after Africa Logistics Properties launched the first phase of its Sh10 billion modern warehouse in Ruiru.
The firm’s flagship project, ALP North with grade A warehousing of 47,000 square metres is also located along the Northern Bypass.
The bypass offers easy connection to the Western side of Kenya and JKIA without driving through Nairobi’s central business district.
Cargo movement along the bypass has reduced, taking as little as 20 minutes to transport goods from Mombasa Road to Limuru, from a previous five hours.
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