Sameer Africa has unveiled plans to build a new industrial warehouse with an estimated cost of KES 260 million, a strategic move aimed at mitigating losses experienced in its tyre distribution division.
The decision to invest in industrial real estate is attributed to the growing demand for warehouses and the overall expansion of the sector.
The Managing Director of Sameer Africa stated that the sector is poised for growth due to increased consumer demand, a rise in the number of international players, and an upswing in international trade volume.
Mugo disclosed that the company aims to commence operations in the new facility by mid-next year.
“The facility has been designed to cater to tenants’ specific needs, incorporating considerations for size, layout features, and functionality.” Additionally, he emphasized the company’s intention to secure long-term pre-construction lease agreements to safeguard future rental revenues.
Sameer Africa, a prominent tyre distributor, opted to enter the industrial real estate business following losses incurred, primarily driven by the influx of inexpensive tyres from China. The foray into real estate has proven rewarding.
Currently, Sameer operates a warehouse along Mombasa Road spanning 8.8 acres, offering tenants ample utility services, installed electricity power, high-speed fiber connectivity, and a dedicated property management team to ensure seamless business operations.
This diversification initiative is pivotal for the company, strategically enhancing Sameer’s adaptability to the dynamic market and reducing dependence on a single business division. Through this move, the company is better positioned to navigate market uncertainties, considering the prevailing macroeconomic conditions in the country.
