Improvon Group, one of Africa’s most established logistics and warehouse property specialists, and Actis, a leading investor in growth markets, have announced the launch of Nairobi Gate Industrial Park.
Located off the Eastern Bypass, this 103-acre development will offer state-of-the-art industrial and logistics accommodation for local and international companies, with quick access to key logistics and transport hubs such as the Jomo Kenyatta International Airport and the Inland Container Depot.
Nairobi Gate brings a unique “build to suit” concept to Nairobi that has been necessitated by the demand for modern, flexible and efficient warehousing facilities. It offers flexibility and scalability for occupiers’ operational needs.
The development is estimated to cost US $110m (Ksh 11bn) upon completion. Commented Koome Gikunda, Actis Director for Real Estate: “We are delighted to be working with Improvon and launching the Nairobi Gate Industrial Park. We are bringing something unique to the market, not just from a development point of view, but also in our approach. The face of warehousing and logistics property is changing, with companies migrating to better locations and consolidating into single facilities to achieve economies of scale and operational efficiency. We are looking forward to partnering with businesses across the region as they make this journey”.
Explained Stefano Contardo,Improvon CEO:“Phase 1 of Nairobi Gate will span 103 acres and 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.
“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.
“Nairobi Gate will be most suited to light industry, warehousing and distribution centres and offers power supply, adequate water storage, maximum volumetric capacity, wide column grids and generous parking.”
The Nairobi Gate development will offer the latest in green design and sustainability practices that optimise natural light and harness temperature regulation and water reticulation, making it cost effective and less impactful on the environment over the long term.
The Improvon Group has developed and tenanted in excess of 10, 000, 000 ft2 of logistics properties for use by warehousing and distribution operators across Africa. Actis’ investment in Improvon will allow it to accelerate its growth across sub-Saharan Africa markets, starting with Nairobi Gate Industrial Park.
Commented Michael Turner, Actis Director “We see South Africa, Kenya and Zambia as key distribution hubs to the rest of the continent. East Africa is especially experiencing strong consumer demand and infrastructure development on the back of a resilient and diversified economy, which underscores the case for logistics and warehouse developments.”
Phase 1 of Nairobi Gate will be complete in the second quarter of 2019.
Improvon is a specialist property investment company focused on the warehousing and logistics property sector within sub-Saharan Africa. Improvon’s portfolio comprises premium logistics properties located in strategic nodes across South Africa as well as in key high-growthemerging market hubs such as Nairobi, Kenya and Lusaka, Zambia.
All the properties in the portfolio have been developed, built, tenanted and managed by the Improvon group. Improvon was established in 1995 with the founders still active in the business. The group has developed and tenanted in excess of 10, 000, 000 ft2of logistics properties for use by warehousing and distribution operators across Africa.
The investment byActis enables Improvon to unlock its significant and strategically located land bank of more than 1, 186 acres(516, 667, 700 ft2) to source and structure unique warehousing and logistics solutions for its clients.
Actis is a leading investor in growth markets, delivering consistent competitive returns, responsibly. It has a growing portfolio of investments across Asia, Africa and Latin America and has raised over US $13bn since inception.
The firm invests through insights gained from trusted relationships and local knowledge, deep sector expertise and an unparalleled heritage, set within a culture of active ownership.
Applying developed market disciplines to growth markets, an established team of c. 100 investment professionals in ten countries identify investment opportunities in response to two trends: rising domestic consumption and the need for sustained investment in infrastructure across private equity, energy and real estate asset classes.
Actis’ real estate business recently closed on its third opportunistic private real estate fund, with commitments totalling more than $500m – the largest private real estate fund targeting sub-Saharan Africa to date. The investment strategy focuses on the development of retail, office and industrial assets in some of the most dynamic cities in the region. Over the past decade, the team has invested in assets valued at $1.4 billion on a gross asset value basis.