Logistics property developer, Improvon, has turned its focus on Embakassi where it is building an industrial park worth over KSh. 11 billion.

The firm is targeting pharmaceuticals, fast-moving consumer goods, cold storage facilities, processing plants and factories in the area that is already dominated by such industries.

Construction of the facility began in 2020 amidst the Covid-19 pandemic. Last year the firm secured the leased of a two-acre parcel of land for the project from the location.

“This functionality also caters for short-term rentals, or where multiple third-party logistics suppliers use the same warehouse space for their distribution. A key differentiator of logistics parks is the ability to offer scalable solutions to local, regional and international tenants,” said Paul Williamson, head of leasing at Improvon.

The Embakasi area consists of a considerable supply of old and abandoned warehouse facilities as user have sought more modern facilities or built their own.

The firm said Embakasi’s proximity to the airport (JKIA) and the Inland Container Depot (ICD) is a strategic consideration as it offers efficiency and cost savings to clients. Across real estate segments, Logistics and Healthcare have been least affected by the pandemic both locally and globally.

“The reason for this is mainly two-fold, first logistics providers are still able to supply retailers and consumers with essential items. The second reason is that logistics providers, distribution companies, e-commerce companies and pharmaceutical suppliers all have to allow for contingencies in their distribution models, in order to ensure business continuity, should a particular warehouse or distribution facility be temporarily closed due to the pandemic,” Williamson told Business Daily.

The Embakasi and Mlolongo areas have seen a steady increase in interest by industrial and logistics developers in recent times. Last year in December Pan African real estate firm, Grit, announced plans to build 10,142SQM of warehousing space in Mlolongo to help it grow its logistics footprint in the country.

The Actis backed Improvon, which is one of Africa’s major industrial and logistics developers claims it has so far delivered over two million square metres of built-up spaces across sub-Saharan Africa. In October 2020, the firm secured two anchor lease agreements with one of Kenya’s largest tank suppliers, Kentainers, for its Nairobi Gate industrial park.