Integrated property investment and development property company, Africa Logistics Properties (ALP) has announced the signing of Kenya’s largest ever warehousing lease, with Freight Forwarders Solutions (FFS) Ltd.
The 10 year lease will be for ALP’s entire Nairobi warehousing complex of 14 000 square metres, which is also Kenya’s first international standard logistics and distribution hub.
“We are delighted to be supporting FFS 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, benefitting 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).
FFS, which is the contract logistics arm of leading regional logistics group Freight Forwarders Kenya (FFK) said the logistics facility will enable the company to provide an end-to-end delivery capability.
“Kenya has been crying out for a development of this specification and ambition,” said Ben Clay, Managing Director, Freight Forwarders Solutions. “For us, this is a great opportunity since we focused on inbound cargo, freight and transport services as well as project cargo into East Africa.”
The ALP hub, which is on a 22 acre site within the Tatu Industrial Park will provide 50 000 square metres of prime modern warehousing facilities for international and local regional companies.
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. The complex is expected to open in October 2018.
A second ALP hub, at nearly twice the size, has commenced construction to the west of Nairobi.
Shareholders of the logistics developer include CDC Group, the UK’s development finance institution, and IFC, of the World Bank Group.