Alpha Business Park unveils Grade A integrated logistics base

20 June 2017

Nairobi, Kenya – Alpha Group, a logistics and engineering conglomerate brand, has unveiled a world-class integrated logistics facility in Nairobi, Alpha Business Park, in a new wave of industrial property development targeted at tapping into the scarcity of high-quality warehousing space in the city.

The newly-built Grade A facility is strategically located on the Eastern By-pass, 11 kilometres from the JKIA cargo terminal and 11.1km from Thika Road. The development comprises of five sections, each with office space on three floors, specialised warehouses, spacious lay-down area and a large cold-storage facility. Construction of the ultra-modern logistics base began in 2014.

Alpha Business Park has a 360-metre frontage on the Eastern By-pass and public access road to the rear, ensuring ease of entry and exit for all vehicles. The purpose-built development is set on approximately 83,000 square metres and is ideal for firms in engineering, oil and gas, small manufacturing, pharmaceutical storage and logistics.

Karan Yadav, Group Commercial Manager at Alpha Group, said: “This is a very specialised facility which complies with global standards suitable for gauged (containerised) and out-of-gauge cargo. When we decided to build Alpha Business Park, the oil and gas industry was just warming up and many companies were looking for bases between Mombasa and Nairobi. What we have since built is an integrated logistics base suitable for mixed-tenancy.”

A typical warehouse at Alpha Business Park is 1,440 sq m in size, with covered storage of a 10-metre hook height and 2,550 sq m of lay-down area (open yard). The specialised warehouse floor also has a five-tonne/sq m load capacity.

The development has a 500KVA back-up generator, oil and water separator, sewage treatment plant, incinerator, security and access control, adequate parking and loading space, as well as a borehole. Alpha Business Park offers a large truck-turning radius and a load-bearing capacity designed for 10-tonne gantry cranes.

“Currently there are no other facilities around Nairobi that offer these features and which are ready for immediate occupation,” Yadav said.

The cold-storage facility, which is the largest in Nairobi, is suitable for pharmaceuticals, food and beverage industries, among others. The facility comprises six cold store units of -200 containing 2,688 pallet positions suitable for bulk storage, and two multi-temperature (-200 to +100) units of 720 pallet positions. All the cold stores can operate independently, offering a gross storage volume of 15,280 cubic metres. The facility also comes with 100 plug-in points for refrigerated containers.

Aftab Rupshi, Project & Facilities Manager at Alpha Business Park, said: “There is no publicly available cold storage facility of this scale in Nairobi that currently serves the pharmaceutical industry. It will take at least two years for another facility of this size to come into the Nairobi market. At Alpha Business Park, even cold store clients have an option for office accommodation.”

According to Knight Frank’s Logistics Africa 2016 report, Nairobi lacks an adequate supply of high-quality warehousing space of the kind found in Southern Africa and Eastern Europe. Occupiers of prime warehouses require properties built to high technical specifications that support modern retailing, distribution and manufacturing practices, the report noted. Previously, some occupiers have had to build their own specialised facilities.

Ben Woodhams, Managing Director at Knight Frank Kenya, said: “Nairobi is the regional hub for East Africa, a gateway from Far East into the continent, and logistics is therefore a very important aspect of this.

“For a long time, there has been little speculative investment in Grade A logistics bases. We are now seeing a new wave of development as developers take advantage of new infrastructure around Nairobi such as the Eastern and Northern by-passes. There is a vacuum in the market and Alpha Business Park is an important part of the solution as it will service not only Kenya but the wider East Africa region.”

Woodhams noted that distribution and retail are some of the industries looking for logistics bases built to international specifications for efficient supply chains.

Alpha Business Park already has four major clients, including NOV Kenya (oil & gas), Expro Group (oil & gas), Kinangop Wind Park and East African Sea Food (Alpha Group subsidiary). Southern Engineering Co. Ltd (SECO), part of Alpha Group and the development’s contractor, is also on site to provide specialised ancillary services and logistics support to tenant firms on call at subsidised costs. SECO is also famed for installation of the entire Lake Turkana Wind Power project.

“While the Nairobi logistics market is still at its infancy, it is gaining traction and is the fastest growing property sector in East Africa. We believe that during the course of 2019 the second wave of development will be triggered, and within five years you will walk into our offices and we will have a range of logistics developments to showcase,” Woodhams said.

He added that a typical Grade A logistics property is defined by the high specifications in terms of quality, size (much bigger in scale than typical warehouses), hook height and dock levellers, large lay-down area around the warehouses and specialist facilities such as cold storage.

-ENDS-

For additional information, please contact:

James Waithaka, PR & Communications Officer | Knight Frank Kenya, on +254 725 423 991 or james.waithaka@ke.knightfrank.com

Notes to Editors

Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank has more than 14,000 people operating from 413 offices across 60 countries. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the Company, please visit www.knightfrank.co.ke

Alpha Group is an industrial conglomerate brand with seven associated companies operating in logistics, marine and shipping, sea food and engineering industries over the last 50 years. Alpha Group has a strong presence in several major export-oriented industries and the activities are consolidated in two divisions, namely the Marine & Logistics Division and Food Division. For further information, please visit: www.alphaafrica.com