Africa Logistics Properties (ALP) has announced the signing of Kenya’s largest ever warehousing lease, with Freight Forwarders Solutions Ltd (FFS), the contract logistics arm of leading regional logistics group Freight Forwarders Kenya (FFK).

This deal, which points to the latent demand within the East African logistics sector, involves a 10-year lease for the entire first phase of ALP’s flagship 14,000sqm warehouse complex in Nairobi. The complex will be Kenya’s first international standard logistics and distribution hub. It is now under construction within the Tatu Industrial Park, Nairobi, and completion is expected during October 2018.

“Kenya has been crying out for a development of this specification and ambition,” said Freight Forwarders Solutions Managing Director Ben Clay.

“For the Freight Forwarders (FF) group, which is focused on inbound cargo, freight and transport services as well as project cargo into East Africa, this best-in-class logistics facility will enable us to provide an end-to-end delivery capability.”

The past 12 months have been very eventful for ALP. During Q4:2016, they acquired their first site in Western Nairobi where construction on another ALP hub, at nearly twice the size, has commenced. In Q1:2017, they made a second acquisition in Tatu Industrial Park and also received a $35m boost from CDC and IFC. Finally, in Q2:2017 they secured $4m in additional funding from a Dutch Family Office.

Speaking on the new lease, Toby Selman, CEO of Africa Logistics Properties (ALP) said:

“We are delighted to be supporting Freight Forwarders Solutions 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.”

The ALP hub within Tatu City is on a 22 acre site and will provide 50,000sqm of prime modern warehousing facilities in total. The hub is part of a programme of warehouse developments across the capital cities of Sub-Saharan Africa.