US$ 97m art logistics distribution centers in Kenya are set to be constructed by Africa Logistics Properties– an integrated commercial property investment platform based in Nairobi, Kenya.
The Managing Director, Mr. Toby Selman confirmed the reports and said that the new facilities will be constructed at Tatu City and Limuru and the centres will be fit with state of the art facilities.
“At Tatu City, we are planning to build a 50, 000 square metre warehousing and in Limuru, we have a 49-acre land that we are planning to build 80,000 square meters,” Selman said.
The logistics distribution centers will be of Grade A warehousing and will target large logistics and distribution firms in the region. Some of the major shareholders include International Finance Corporation, UK Pension Funds and CDC among others.
“We are looking at distributors, manufacturers, food companies, and fast moving consumer goods among others.
Mr. Selman further said that the first warehouse will be built at Tatu City and set to be completed in September 2018.
This initiative comes as Multinational companies including Carrefour, Choppies, food chain brands that include Burger King and Hardees as well as fashion brands like LC Waikiki and Luxury Brand Dead Sea Premier enter the growing Kenyan Market.
“Furthermore, local retailers continue to seek more franchise agreements with international brands, this being a positive indication of the untapped retail potential in the Kenyan market,” he concluded.
The Kenyan capital lacks adequate logistics space to meet manufacturers rising demand for improved distribution networks and supply chain; this is according to a logistics report by Knight Frank.
The report attributes the rising demand to manufacturers seeking to expand their presence in Africa and the associated expansion of its consumer market.
Africa Logistics Properties is an integrated property company that acquires, develops and manages modern logistics warehousing across Africa. They are active in Morocco and Egypt but are soon planning to enter Uganda and Ethiopia.