Purple Dot International has announced that it plans to set up a Ksh. 600 million warehouse facility for light industries in Athi River, Machakos County.
Purple Dot is set to invest in Phase 1 at Harvest Industrial Park, a Ksh. 600 million light industrial warehousing property measuring 7,425 square feet with 24 units and 3 level spaces.
The project, which is set to break ground this month, is expected to be completed in 18 months, with a rental price of Ksh. 22 per square foot exclusive of service charge. The new facility is ideal for consumer oriented light industries, assembly and storage go-down facilities for SMEs, FMCG companies, central distribution warehouses for e-commerce and household goods among others.
Harvest Industrial Park is the most recent investment by Purple Dot International situated in Athi River, following the 145-unit 1.16 million square feet Graylands project launched in phases between 2015 and 2021.
Speaking during an investor’s roadshow on site, Purple Dot International’s General Manager Jiten Kerai said the investment provides double digit value. “The project guarantees strong and sustainable returns, given the historical performance of our 300+ warehouses in the area. Over the years, our investors have come to value the location, quality, functionality and long-term appreciation of the warehouses as an investment asset. The facility users also appreciate the design features suited to their businesses as opposed to what we find in much larger industrial parks. It is close to the Southern and Northern bypasses, the four-lane Mombasa-Nairobi Highway, and the Syokimau inland container terminal, as well as economical labor.”
“Kenya’s logistics prominence as a trading hub in East Africa will be enhanced by the installation of modern warehouses, which will enable trade growth, employment, and sustainability across a variety of industries,” said Kerai. Kenyan businesses can increase operational efficiencies and product security with access to better logistics, which is critical for Africa’s progress.”
With investors keen to capitalize on Africa’s potential, warehousing is critical to Kenya’s logistics value chain. According to the CDC Group, the UK’s development finance institution, Kenya has a 16.9 million square foot warehousing gap. The cost of transporting goods in Africa is believed to be two to three times greater than in industrialized countries, with transportation costs accounting for as much as half of the total cost.
Purple Dot International Limited is a residential, commercial real estate developer company.