Grit Announces Plans to Grow Logistics Presence in Nairobi
By Estate Cloud - over 2 years ago - Kenya
London listed Pan African real estate firm, Grit, has announced plans to build 10, 142SQM of warehousing space in Mlolongo.
Grit Real Estate Income Group revealed in its annual report that the project will help it grow its logistics presence in the country. Proximity to the Standard Gauge Railway and the Jomo Kenyatta International Airport (JKIA) and the Inland Container Depot has made Mlolongo and Syokimau attractive locations for storage and logistics providers based on increased access and connectivity.
The land to be developed is located adjacent to Grit’s pharmaceutical warehouse which currently hosts the Imperial Health Sciences facility in the prime airport industrial district of Mlolongo.
The company said the development of the prime logistics and warehousing facility will begin in 2021 with completion projected in 2022.
In the report, the firm also revealed it’s in the process of closing a KSh.4 billion sale-and-leaseback acquisition of the 29,243SQM manufacturing facilities from Orbit Africa, a consumer goods manufacturer.
The transaction will see the land change ownership from Orbit Africa to Grit, while the former will maintain occupancy of the precincts as a tenant.
Grit said it has reached a 23-year development lease agreement with Orbit Africa that will include expanding the facility by an additional 14,741SQM which incorporates refurbishments on a built-to-suit model.
The Pan-African real estate group had in January announced plans to close the deal within the first quarter of the year, giving it 100 percent shareholding of the property, which did not materialize.
“The acquisitions are in line with Grit’s strategy of acquiring superior quality assets tenanted by blue-chip multi-national companies under long-term, hard currency leases, whilst further enhancing the quality and diversification of the portfolio in terms of tenant, geographic and sector exposures,” the company had said.