Africa Logistics Properties signs off Kenya’s largest ever warehousing lease with regional freight leader
Africa Logistics Properties (ALP) has announced the signing of Kenya’s largest ever warehousing lease, with Freight Forwarders Solutions Ltd (FFS), the contract logistics arm of leading regional logistics group Freight Forwarders Kenya (FFK).
FFS has signed a 10-year lease for ALP’s entire first Nairobi warehouse complex of 14,000 square metres, equivalent to the size of some of Nairobi’s larger shopping malls, such as Galleria and the GreenHouse.
ALP’s modern warehousing complex will be Kenya’s first international standard logistics and distribution hub. It is now under construction within the Tatu Industrial Park, north-east of Nairobi, and will open in October 2018. The ALP hub is on a 22-acre site and will provide 50,000 square metres of prime modern warehousing facilities for international and local regional companies. A second ALP hub, at nearly twice the size, has commenced construction to the west of Nairobi.
The opening of the first complex now leased in full to FFS is the opening launch in ALP’s scheduled programme of warehouse construction across the capital cities of Sub-Saharan Africa. Shareholders of the logistics developer include CDC Group, the UK’s development finance institution, and IFC, of the World Bank Group.
The leasing of ALP’s entire first phase complex comes amid a lack of grade-A modern international standard logistics facilities in Kenya, and rising costs for producers on inadequate facilities.
“Kenya has been crying out for a development of this specification and ambition,” said Freight Forwarders Solutions Managing Director Ben Clay. “For the Freight Forwarders (FF) group, which is focused on inbound cargo, freight and transport services as well as project cargo into East Africa, this best-in-class logistics facility will enable us to provide an end-to-end delivery capability.”
ALP’s management team, which has 40 years of experience in developing modern warehousing across emerging markets, and previously built 1.5m square metres of modern warehousing across Eastern Europe, is now working with leading international and regional companies across East Africa to improve their warehousing facilities, supply chain infrastructure and profit, from improved cost efficiencies.
“We are delighted to be supporting Freight Forwarders Solutions contract logistics business with grade-A logistics warehousing. As a first mover into our facility, FFS will now have a competitive advantage in the contract logistics market, benefiting from lower per pallet storage costs, operational efficiencies and lower operating expenses due to modern warehouse designs and environmental features,” said Toby Selman, CEO of Africa Logistics Properties (ALP).