Africa Logistics Properties brings A-grade warehousing to Kenya
The company's first project, worth $60m, was launched in September, with a pre-let occupancy of 75%
One of the fastest-growing economies in Africa is set to receive a logistics boost with private company, Africa Logistics Properties (ALP) becoming the first group to develop A-grade warehousing in Kenya. The East African country's central bank has forecast growth of about 6% for 2018, and ALP CEO Toby Selman says Kenya needs to offer better industrial space to companies that want to use it as a distribution centre. The Kenyan industrial market is dominated by small-scale grade C warehouses, or godowns, that are of a relatively poor quality and do not meet the standards that demanded by manufacturers, e-commerce companies and pharmaceutical suppliers. Selman says ALP is building logistics warehouses at a yield of 8.5%. This is while office and retail yields have fallen from about 11% three years ago to about 8%, while residential property yields are now at 5.6%. “With Nairobi being East Africa’s key trading hub, businesses operating in the region are demanding access to warehousing ...
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