The construction of an Sh11.5 billion industrial park at the Kenyatta family-owned Northlands City in Ruiru, will be completed by early next year, the South African developer behind it has said.
Improvon, the industrial property developer, earlier said it had teamed up with private-equity investor Actis to build what is billed as the biggest industrial real-estate investment in Kenya’s history.
The new industrial park will be called Nairobi Gate. It will be located in the upcoming Northlands City set to benefit from the Sh40 billion dualling of the Eastern Bypass.
Improvon CEO Stefano Contardo on Friday gave the construction timeline update as he announced the completed unit will also target South African firms.
“Some SA companies have established themselves there (in Kenya) already and can be tenants for our development. Kenyan businesses understand English, they are dollar-based and the market is not too competitive so we can do good work there,” he was quoted saying in South African media. “We have found that while SA struggles and looks slightly sketchy, other parts of the continent are looking more attractive. Kenya stands out for many reasons.”
Nairobi Gate, which is expected to open in March next year, will be on land acquired by ImpAct, Mr Contardo said.
ImpAct is providing all of the infrastructure around Nairobi Gate.
The two companies have created a joint venture called ImpAct to build the 10,000m² industrial business park development.
Louis Deppe, partner for real estate at Actis, was quoted saying he was confident that Nairobi Gate would be a success and that a similar design could be replicated in other African countries.
Northlands City proponents are also eyeing development of commercial and residential areas estimated to cost Sh500 billion to accommodate 250,000 workers daily within the next two decades. Eastern and Western bypasses had earlier been expected to be expanded at a cost of Sh40 million within three years once the National Environmental Management Authority gives a nod.
Northlands City, a mega urban development comprising of residential, industrial and commercial units, will accommodate an estimated 250,000 people working and living within its boundaries.
