Mauritius-based Grit Real Estate Income Group has announced plans to set up an additional 10,142 square metres of warehousing space in Mlolongo, targeting the growing industrial and transport hub in the area.
The firm made the announcement during their annual report for 2020 and said that Mlolongo and Syokimau are attracting new investment in storage and logistics following the completion of the standard gauge railway line to Nairobi and the inland container depot, hence the need to expand its logistics presence in the country.
“The company intends to expand its logistics presence in Nairobi through the development of an additional 10,000 metres squared of prime logistics and warehousing space, commencing in 2021 and targeted for occupation in mid-2022. The property is located on land adjacent to Grit’s Imperial Health Sciences facility in the prime airport industrial precinct of Mlolongo,” said the firm.
Added portfolio
The expansion will add to Grit’s property portfolio in Kenya, where it already owns half of Naivasha Buffalo Mall and also the pharmaceutical warehouse along Mombasa Road that it leases out to South Africa’s Imperial Health Sciences Logistics.
Grit also said in the report that it is in the process of closing the sale-and-leaseback acquisition of the 29,243 metre squared manufacturing facilities from consumer goods manufacturer Orbit Products Africa.
The transaction on the property that measures about 20 acres is valued at more than Sh 4billion. The deal will see Orbit sell the land and buildings to Grit and remain as a tenant that will pay rent besides all the other property expenses, including taxes, maintenance and insurance. Grit said it will also expand the facility to add another 14,741 square metres of space to the property, which will also be let out to Orbit.
“The development phase of the Orbit Africa transaction includes the refurbishment of the existing facility alongside an expansion for an additional facility of approximately 14,741 metres squared,” said Grit.
“The expansion will be delivered on a built-to-suit basis for the tenant, and will be committed to off the back of a 23-year development lease agreement.” The firm added.
