Press Release: Africa Logistics Properties Signs Major Industrial Lease in Kenya with Freight Forwarders Group

Warehouse #1 at the ALP North Logistics Park

Warehouse #1 at the ALP North Logistics Park

Africa Logistics Properties (ALP) has signed a 10-year lease for 14,000 square metres with Freight Forwarders Solutions Ltd (FFS), the contract logistics arm of the leading regional logistics group Freight Forwarders Kenya (FFK). Freight Forwarders Solutions will occupy the entire first warehouse complex of 14,000 sqm at ‘ALP North’, Kenya’s first international standard modern logistics and distribution complex of 50,000 sqm.  which ALP are currently constructing at a site on Tatu Industrial Park. The ALP complex will be operational by October 2018. The lease deal represents the largest industrial lease signed to date in Kenya.

 “We are delighted to be supporting Freight Forwarders Solutions contract logistics business with our modern grade-A logistics warehousing complex, which will be the first of its kind in Kenya. As a first mover into our facility, FFS will have a competitive advantage in the contract logistics market where they will benefit from lower per pallet storage costs, operational efficiencies and lower operating expenses due to our warehouse modern design and environmental features.” said Toby Selman, CEO of Africa Logistics Properties (ALP).

Freight Forwarders Solutions Managing Director Ben Clay commented: “The Freight Forwarders (FF) group has traditionally focused on inbound cargo,  freight and transport services as well as project cargo into East Africa so this best in class contract logistics facility opens a new chapter in the history of FF and enables us to provide an end to end delivery capability. Kenya has been crying out for a development of this specification and ambition so we look forward to partnering with ALP on this and future builds of a similar standard. I am sure this development will spark a great deal of interest in both the logistics industry and the logistics market in the region.”

ALP is working with a number of leading international and regional companies seeking to improve their warehousing facilities, supply chain infrastructure and profit from improved cost efficiencies.

About Africa Logistics Properties (ALP)

Africa Logistics Properties (ALP) is a specialist integrated property investment company that develops, acquires and owns class-A industrial and logistics properties in principal cities across Africa. ALP was founded in 2016 by Toby Selman and strategic investor Maris. ALP leverages its team throughout the region via a deep understanding of global customer and logistics demands, international best practices in warehousing design specifications, construction and property management. ALP is supported by global institutional shareholder investors. The company is currently developing Nairobi’s first international grade-A logistics warehousing parks as part of its overall pan-Africa roll-out strategy.

Leasing enquiries contact: info@africawarehouses.com

Media enquiries contact: grace@africanlaughterpr.com

Investment - DOB Equity backs Africa Logistics Properties

DOB Equity, a leading Dutch family office, will invest up to US$4mn in Africa Logistics Properties Holding (ALP), a developer and manager of modern grade-A warehousing in Kenya, to allow the firm to build warehousing developments and expand its operations across East Africa.

DOB Equity will invest alongside CDC Group, the UK’s development finance institution; IFC, the private sector focused global development institution and member of the World Bank Group, and Co-Founder Maris, a diversified investment group operating across African frontier markets, Mbuyu Capital, the UK asset manager and other local and international investors.

DOB Equity says that a well-functioning logistics sector is crucial for economic development. Currently, both international and local companies are being constrained by a lack of modern, high quality and efficient warehousing across the region.

DOB Equity explains that ALP seeks to tap into this underdeveloped warehousing sector by providing grade-A, international standard warehousing and offering tenants access to international standard distribution and logistics services.

Brigit van Dijk – van de Reijt, CEO at DOB Equity, comments: “ALP brings an innovative solution to the warehousing sector in Kenya.”

“The warehousing supply in East Africa is still fragmented, often located in congested areas, and lacking in overall industrial quality. It can be unsuitable for occupiers because of high operational and cost inefficiencies that hamper international companies looking to set up local operations, and prevent local SME’s to reach scale.”

“ALP helps to drive logistical costs down by providing grade-A warehousing facilities which create built-for-purpose supply chain infrastructure to drive efficiencies that should lead to lower prices for consumers. ALP helps enable companies to focus on their core competencies instead of having to construct, manage, and maintain warehouses on their own. For SME’s in particular, their services will create instant growth opportunities.”

Saskia van der Mast, Investment Manager at DOB Equity, adds: “We believe Kenya is ideally located as an entry point and hub for eastern and central Africa to benefit from the region’s industrialization, growing trade, and expanding consumer markets.”

“DOB Equity is investing in a team led by Toby Selman that has extensive emerging markets experience in warehouse development, which will be able to make the most of this opportunity.”

Toby Selman, CEO and Co-Founder of ALP, says: “As ALP are also targeting Kenyan growth businesses in addition to larger, international companies, we are pleased to have DOB Equity on board as they have a strong foothold in the local SME market, which will benefit us going forward.”

 

Leasing Update - 14,000 sqm Nairobi Pre-Lease Agreed

Africa Logistics Properties (ALP) has agreed terms with an international occupier to lease the entire first unit of 14,000sqm at our ALP North project in Northern Nairobi, the largest industrial lease to date in Kenya. Our ALP North project of nearly 50,000 sqm currently under construction will be the first international standard grade-A logistics and distribution park in Kenya for the rental occupier market.

Investment - ALP Completes Initial Equity Capital Raise

CDC Group, the UK’s development finance institution, and IFC, a member of the World Bank Group, will invest up to US$35 million in Africa Logistics Properties Holding (ALP), a developer and manager of modern grade-A warehousing, filling an important gap in logistics infrastructure in the region.

The investment – US$25m from CDC and US$10m from IFC - will be used for ALP’s developments in Nairobi, Kenya, the trading hub of East Africa, where the lack of quality international standard warehousing space has long been a constraint on business growth and economic development. Quality warehousing improves operational efficiencies by reducing waste from poor storage, increasing the speed of product delivery and improving product security.         

The cost of moving goods in Africa is estimated to be on average two or three times higher than in developed countries and transport costs can count for as much as 50-75% of the retail price of goods. By investing in ALP, both the IFC and CDC are supporting Africa’s growing trade, both within the continent and overseas.

ALP is backed by Maris, a Nairobi based private investment business focused on sub-Saharan Africa which will invest US$8million. IFC and CDC are also joined in the project by Mbuyu Capital Partners, an Africa-focused UK-based asset manager with an investment of up to $5 million, among others. ALP will be led by founder Toby Selman, an experienced emerging markets warehousing developer, and a Nairobi based team with African and international experience.

“IFC and CDC not only bring capital and expertise as experienced  investors in African infrastructure, but are also both committed to helping ALP deliver modern logistics parks with world-class environmental and social risk management standards,” said Toby Selman of ALP. ALP warehouses will adhere to IFC Edge green buildings standards.

Ilaria Benucci, CDC’s Investment Director said:

“CDC is backing ALP because we know that logistics is a critical, yet often overlooked, part of economic development. Investment in agriculture needs to be supported by an adequate supply chain to get produce to market. Essential medication won’t work if it cannot be transported and stored in the right conditions. Our investment will support a company that’s making trade easier in Kenya, and we hope that it can be the start of an expansion into other African cities.”

Mary-Jean Moyo, IFC Regional Head of Manufacturing, Agribusiness and Services in sub-Saharan Africa, said, “Introduction of modern warehousing in Kenya will support growth, employment and trade across a range of industries. With access to quality logistics, global companies will find it easier to ramp up businesses in Africa.”

- See CDC Press Release here

Completion - Western Nairobi Land Acquisition

Africa Logistics Properties ('ALP'), the specialist pan-African modern logistics warehousing developer and investor, is pleased to announce the completion of a 49-acre industrial land acquisition in Western Nairobi.

ALP intends to develop Nairobi's first modern industrial park in phases with up to 80,000 sqm of modern international standard grade-A warehousing for light industrial, logistics and distribution uses by occupiers.                             

The ALP project will provide units of 5,000 sqm and larger to grade-A specifications, direct access to the Western Highway from Nairobi to Nakuru, 24-hour comprehensive security and utilities infrastructure incorporating environmental technologies to international standards. In addition, ALP will develop “Built-to-Suit" options for companies to meet their specific requirements.

According to the 2016 World Bank Logistics Performance Index, Kenya moved up to rank second after South Africa in the index that ranks 160 countries.

More information on the development can be obtained from info@africawarehouses.com