Tilisi, the mixed-use megaproject set at the meeting point of Tigoni, Limuru, and Sigona, on the outskirts of Nairobi, has today announced the sale of 49 acres of its light industry zone to Africa Logistics Properties (ALP).
The sale accounts for over half of the project’s phase 1 build, for which Tilisi is selling fully serviced plots for light industrial/ logistics use, with paved roads, street lighting, water, electricity and ICT reticulation, sewage treatment plants, matatu stops and recreational facilities for workers within the warehousing zone.
“With the administrative and approval process now complete for Tilisi, and the legal agreements signed, we are delighted to announce this sale to this dynamic and professional logistics developer. Construction of our infrastructure for phase 1 will commence in July,” said Ranee Nanji Co- CEO of Tilisi.
Tilisi Logistics Park is set to create more than 1,000 local jobs on completion, and will be set on the southern spur of its 400-acre mixed-use development, which is one of Kenya’s leading real estate developments, creating a new satellite town on the city’s outskirts.
Tilisi is the nearest megaproject to Nairobi’s city centre, located close to the junction of Nairobi’s new southern bypass, the Northern by-pass and just off the Nairobi – Nakuru Highway, which is the main road cargo route from Mombasa port to western Kenya, Uganda, and Rwanda, currently being upgraded to a six-lane highway by China Wu Yi Construction Company Ltd. “Being set on major arterial roads on the West of Nairobi and within easy reach of the airport was a critical factor in the design of the Tilisi masterplan,” said Kavit Shah, Co-CEO of Tilisi.
Tilisi’s location also makes for an easy reach from Kenya’s main airport, which remains one of Africa’s biggest airports for cargo. With a cargo capacity of 20.3m tonnes, according to the Kenya Airports Authority (KAA), Jomo Kenyatta International Airport is a major hub for regional traders, especially in the global flower business, which requires rapid transport.
The location additionally allows tenants and future owners to bypass the congestion through Nairobi, resulting in more efficient logistics in terms of time and cost.
ALP, which is developing Africa’s first grade A warehouses for rental occupiers in Nairobi, has bought its largest land purchase at Tilisi.
” The 49-acre site we are acquiring from Tilisi will be the location of our second modern grade-A logistics and light industrial park in Nairobi which will give strategic access to both Nairobi and the Western Kenya corridor for companies who operate from our facilities,” said Toby Selman, CEO of ALP.
Tilisi has dedicated 90 acres to warehousing in its first phase of development, with a further 41 acres remaining after its 49-acre sale to ALP. ALP will develop 80,000 square metres of international standard grade-A logistics and light industrial warehouse space for rental occupiers, while the remaining Tilisi plots are available for sale and are designated for owner occupiers to build their own units.
“ALP and Tilisi have complimentary business models, offering multinationals and domestic Kenyan producers a choice of an ownership model or rental model.” said Kavit Shah.
Africa Logistics Properties (ALP) has today announced the launch of Kenya’s first ever grade A logistics and distribution parks for the international and local occupier rental market in order to improve much needed supply chain infrastructure in the country.
The company today announced two land purchases situated in the North and West outskirts of Nairobi, unveiling the purchase of 22 acres at Tatu City, in Ruiru, and 49 acres from Tilisi, towards Limuru.
The two warehouse parks will offer international standard warehousing to multinational and local regional companies in the logistics, retail, light industrial, FMCG and e-commerce sectors.
Kenya is among many African nations suffering losses on inadequate warehousing facilities, with the cost of moving goods in Africa estimated to be up to three times higher than in developed countries, accounting for as much as 75 per cent of retail prices.
“Economic development in Africa now rests significantly on the development of modern grade A industrial and logistics warehouses, which we are moving to build across targeted African capital cities, beginning with Nairobi,” said Toby Selman, the Co-Founder and CEO of Africa Logistics Properties (ALP).
“We have now started construction at the Tatu site, while the construction of infrastructure and road junctions at our western Nairobi site is due to commence in the coming months.”
The design specifications for the ALP warehouses conform with international building standards. “Once complete, the units will also be managed to international property management standards by ALP’s team,’ said Selman.
The company expects to create up to 500 jobs in each of its new warehousing parks.
At Tatu, ALP will be creating 50,000 sqm of grade A warehouse space, to be called ALP North. It has, this month, also agreed terms with an international company for the park’s first rental lease, for 14,000 sqm of warehousing, in Kenya’s largest industrial lease to date.
Each warehouse will provide raised loading bays, 12m high operating eaves, large column grids of 12 x 24 metres, high load capacity, laser levelled flooring together with large high capacity truck yards and parking.
“These specifications enable operators to store up to eight pallets vertically, leading to lower storage costs and overall higher operating efficiencies,” said Selman.
Occupier service charges will also be lower than traditional ‘godowns’, thanks to environmental features such as solar power – with mains and generator back up – and rainwater harvesting.
ALP recently completed the first closing of its oversubscribed initial fundraising, raising $50m from CDC Group, the UK’s development finance institution, and from IFC, a member of the World Bank Group.
Other institutional investors include Maris, a Nairobi based private investment business focused on sub-Saharan Africa, and Mbuyu Capital Partners, an African focused UK based asset manager. ALP also announced last week a $4m investment by DOB Equity, a leading Dutch family office, closing its initial round of equity investments.
The scale and speed of the investor engagement has been driven by the expected economic impact of ALP’s investments and the ALP’s team deep sector experience and execution capability.
“ALP helps to drive down logistical costs by providing grade-A warehousing facilities that deliver built-for-purpose supply chain infrastructure. This infrastructure will create efficiencies that should lead to lower prices for consumers. It will also help both international and local companies to focus on their core business growth instead of having to construct, finance, manage, and maintain warehouses on their own,” said Selman.
ALP’s management team has 40 year experience in developing modern warehousing across emerging markets, having previously built 1.5 million square metres of modern warehousing across Eastern Europe.