South African industrial and commercial property investment company Improvon is working to replicate its local success across new frontiers in sub-Saharan Africa.

With developments under way in Lusaka, in Zambia, and in Nairobi, in Kenya, the group aims to develop power nodes in high-growth emerging market hubs, learn its international development lessons upfront and obtain an early foothold into supply chain property development in Africa.

The unlisted property group had had multiple successes with its portfolio across South Africa, Improvon CEO Stefano Contardo told media during a tour of selected Improvon-owned and -managed premises in Johannesburg.

The group, following a 2017 joint venture partnership with private-equity group Actis, is leveraging its partner’s extensive knowledge of sub-Saharan African real estate markets and its own expertise as a prime logistics property developer to branch out into long-term logistical and warehousing projects further afield in Africa.

“We see South Africa, Kenya and Zambia as key distribution hubs to the rest of the continent. East Africa is experiencing strong consumer demand and infrastructure development on the back of a buoyant economy, which underscores the case for logistics and warehouse developments,” he says.

“Our partnership with Actis allows us to think out of the box when it comes to creating customised solutions for corporates. We are one of the only sector specialists operating across key logistics hubs in South Africa, Zambia and Kenya with the in-house ability to develop, build and manage these kinds of assets, providing our clients with a one-stop solution.”

Apart from an existing portfolio of specialised warehousing and logistics properties, Improvon is currently developing several different tracts of land within and outside South Africa into specialist logistics, supply chain and distribution facilities accommodating clients’ needs.

In Nairobi, Improvon has started the development of the $110-million Nairobi Gate Industrial Park, a modern, efficient 40 ha distribution park comprising AAA-grade warehousing, logistics and distribution facilities along the Eastern bypass.

The first two 5 000 m2 warehouses will be ready for occupation in the first quarter of 2020.

The location is strategic to Nairobi’s 2030 spatial development plan and will feature turnkey projects accommodating tenants from 2 000 m2 up to 50 000 m2, as well as land sale options, adds Improvon leasing and marketing head Mark Truscott.

Improvon is also the developer of York Commercial Park, deemed the first AAA-grade industrial park of its kind in Lusaka, Zambia.

The 40-ha park recently saw the completion of the first 5 000 m2 development and already boasts some multinational tenants.

A further 4 800 m2 speculative development, along with a 6 800 m2 mini unit park designed to accommodate users from 500 m2 to 1 200 m2, has also been completed.

Meanwhile, in South Africa, Improvon, which has to date developed and tenanted in excess of 1.5-million square metres of logistics properties, is continuing its pioneering efforts with the development of a new integrated node, Ashworth Logistics Park, in Long Lake, within the Modderfontein node.

The nearly completed park forms part of the company’s move to adapt to the ever-changing transformation of the supply chain and logistics sector and aligns with the trend of integrating major nodes.

“The integrated nature of the Modderfontein node, for example, as well as the extension of the K113 and proximity to OR Tambo International Airport, major highways and the Gautrain, are game changers for logistics providers,” says Contardo.

The A-grade, light-industrial node, which incorporates several logistics and warehousing parks, will ultimately be integrated with the finance, trade logistics, commerce, technology, education, healthcare and housing sectors as part of the greater Modderfontein area development plan.

“For Modderfontein, it is the link to existing and future transport networks that positions the node as the new gateway to the east,” he says.

“We are pulling out all the stops at Ashworth Logistics Park. Given the location and nodal integration, this will be one of our flagship developments with state-of-the-art security, significant volumetric capacity, FM2 large panel fibre floors to facilitate racking, large yards and turning circles designed for trucks,” Truscott adds.

Ashworth Logistics Park will comprise a total gross leasable area of up to 38 000 m2 with warehouses ranging from 3 000 m2 upwards.

Office space will comprise units of 500 m2 and more.