Logistics company launches a new warehousing facility for SMEs
Milliam Murigi @millymur1
Integrated property and logistics investment company Africa Logistics Properties (ALP), has launched a new warehousing facility for Kenya’s small and medium businesses.
The Sh653.4 million ($6million) development will sit on an expansive 49 acres and will comprise of seven phases measuring more than one million square feet.
Phase One of the facility, which will be known as ALP West facility is already 20 per cent pre-leased and is targeting small and medium enterprises (SMEs) seeking modern storage facilities with a minimum let of 5,300square feet.
“The foundational approach we are taking is a demonstration of our commitment to a long-term investment in meeting Kenya’s warehousing and logistics demands.
This is focused on industry and retail warehousing, commodity warehousing, cold storage, and E-Commerce,” said ALP’s CEO, Richard Hough.
The rest of the phases will be dedicated to larger enterprises who will operate from grade-A warehouses that allow users to operate logistics at international standards, which is on-demand by both local, regional and international companies.
“Vision 2030 prioritises the development of SMEs, industrial and technology parks, industrial manufacturing clusters, and upgrading of products from small and medium enterprises.
What we are witnessing at Tilisi Logistics Park is a development that ties government long-term plans to cater for supply and demands for manufacturing and industrialisation,” said Betty Maina, Cabinet Secretary Ministry of Industrialisation, Trade and Enterprise Development.
Hough said the idea of coming up with the facility was born during the Covid-19 period after they witnessed a general rise in demand for modern warehouse facilities, shift in consumer behaviour to online shopping, which has fuelled an already increasing surge in e-commerce and demand for quality built warehouses for improved supply chain and logistics and within the region.
“We aim to build high-quality logistics warehouses for our clients to meet their increasing need for greater services and amenities in a mushrooming East Africa urban environment.
We remain committed to our purpose to provide affordable and quality warehousing solutions for businesses in the region,” Hough added.
ALP is currently in discussion with various local, regional, and international companies, who own land in various parts of the Eastern Africa to either development or upgrade their warehouses and factories on their behalf, through sale and lease back options or through a pre-determined lease agreement in order to cater for the growing demand.