South Africa logistics operator Improvon Group says it has partnered with private equity fund Actis to construct a huge warehouse in an effort to boost bulk importation and repackaging business in the country.
The Nairobi Gate Industrial Park which will be built on a 103-acre development is also expected to help companies migrate to better locations and consolidating into single facilities to achieve economies of scale and operational efficiency.
Stefano Contardo, Chief Executive Officer Improvo revealed that the project that is expected to be constructed over the next five years will cost Ksh11 billion.
“We are witnessing rapid growth of business in Kenya which will eventually require top warehousing facilities and we are coming in to offer that solution,”said Mr Contardo.
“Phase 1 of Nairobi Gate will consist of ultra-modern logistics, warehousing and distribution centres, bringing a ‘build to suit’ concept to Nairobi in response to the demand for grade A flexible spaces,” he added.
“In line with modern trends it will integrate corporate offices, with excellent access, wide roads and turning circles that can accommodate interlink trucks, generous loading facilities and the highest standard of security, all set in a park-like environment.”
Mr Koome Gikunda, director for Real Estate at Actis said that the partnership brings something unique to the market, not just from a development point of view, but also in their approach.
The Nairobi Gate development will offer the latest in green design and sustainability practices that optimise natural light.
The demand for grade-A warehousing, which delivers significant cost savings and efficiency for users, currently far exceeds supply in the country, with warehouse users reporting that finding suitable facilities is frequently impossible, according to recent poll by Tilisi Developments.
Out of the 56 companies polled, 16% had sought new warehousing in 2017/2018, with a rising proportion failing to find any solution.
“The search levels represented a sharp jump from the previous year, when 9% of respondents searched for new warehousing, while 5% did in 2015” reads the report in part.