It is a boost for local manufacturing as Nairobi Gate Industrial Park opens its doors for business.
This is after the hub completed first phase of the two-phase development project billed at Sh500 million.
The launch coincided with good fortunes for the park after it attracted major business from Kentainers Limited which is a joint venture between sanitation solutions provider AquaSan Tech International and Kenyan based office and packaging solutions provider Ramco Group.
Details show Kentainers recently signed two business agreements with Nairobi Gate where the first transaction involves a two-acre lease of land for a 3,000m2 purpose-built factory with a warehousing component.
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In the second transaction, Kentainers will lease another a two-acre tract of land that will house office buildings and a client collections centre.
The strategy is in line with modern trends in logistics where warehouse parks integrate corporate office space with distribution facilities. The close situation of operations allows companies to increase their efficiency.
Nairobi Gate Head of Leasing Paul Williamson said the company celebrated another key milestone where in addition to the Kentainers transaction, the development of two 5,000 m2 warehouses waiting for take-up has been completed.
“We are experiencing strong demand with a number of leases being negotiated at the moment,” added Williamson.
Developed by South Africa based logistics and warehousing specialists Improvon Group, Nairobi Gate forms part of the larger Northlands Mixed Use Scheme situated on the Eastern Bypass of Nairobi accessible 30 minutes away from Jomo Kenyatta international airport, the inland container depot and the Southern Bypass.
The architects said Nairobi Gate is designed to meet purely large warehousing and manufacturing needs, as well as accommodate large businesses including those specialising in high-value items such as pharmaceuticals, medical equipment, electronics, among other goods.
To be built on 100 acres of land, the construction of the whole industrial park is expected to be complete in ten months. By then it will have provided space in excess of 200,000 m2.
It is also expected that the plan will provide structures including warehouses accommodating tenants from mini units of 500 m2 up to warehouses of 10,000 m2.
Improvon Group Chief Executive Stefano Contardo said taking up Nairobi Gate was an important step for the firm.
“It is indeed a privilege but also a great responsibility to be part of such an exciting project. Despite challenges, we drew on extensive experience in developing ultra-modern A-grade warehousing, distribution and logistics facilities according to client specifications and we are very proud to have completed phase one of Nairobi Gate successfully,” he said.
Also speaking during the recent signing ceremony, Kentainers Managing Director Nikhil Shah said the hub was the ideal place for the company to set up its operations.
“We believe that operating from Nairobi Gate will ultimately benefit our customers through quicker deliveries brought about by combining our manufacturing, warehousing, and administrative functions in one precinct," said Shah.
Ramco Chief Executive Amit Patel made comments along the same lines.
“The strategic location and amenities offered by Nairobi Gate made it an obvious choice for us to reach our growth objectives, not only in Kenya but the rest of the region as well," he said.