Construction World February 2017

The business magazine for the construction industry

FEBRUARY 2017

WORLD

CR O WN B I R O

P U B L I C A T I O N S

SCANIA SOUTHERN AFRICA:

Providing comprehensive construction solutions for your business

Increased need for topless and luffing jib cranes

Five trends in quantity surveying in 2017

Reconstruction and deepening of Maydon Wharf

CONTENTS

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32

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04 Sizeable step towards industry transformation Avelo is a black-woman-youth-owned and managed reinforcing steel manufacturer. 06 2017: Five trends in quantity surveying The ASAQS says that cyclical trend will continue into 2017. 11 R4-billion Times Square fully on track Construction of SA second largest casino is on track. 12 From green fields to green buildings Sandton’s road to become the green hub of Africa.

20 Massive concrete retaining block walls Two very large retaining block walls have been built at Tunney. 22 Establishing a medical precinct at Cape Town The first phase of a new-world class medical centre of excellence. 24 Property entrepreneurship The inspiring story of GQ construction. 28 Reconstruction and deepening of Maydon Wharf Rehabilitating Durban’s largest bulk handling precinct. 27 Fastest-track construction SMEC is designing the civil and structural component of Peermont. 32 Increased high-rise investment New demand for topless and luffing jib cranes. 37 Effective performance management LCP Roofing has partnered with iStrago to optimise processes. 44 Refining a demanding F1 street circuit Using existing streets in Baku for the F1 racetrack.

14 GBCSA launches Green Star – Communities Pilot Programme A new rating tool has just been announced.

REGULARS

04 10 12 18 28 46 48

Marketplace

ON THE COVER

Property

Slimmer operating margins are pushing contractors to take full advantage of modern truck technologies – as well as the range of product options and services that makes for a revenue- generating investment. “Transport today is a science,” says Alex Taftman, general manager for presales, segment support and marketing at Scania Southern Africa, “and fleet owners are relying increasingly on us to provide the total solution that adds value to their bottom line.” Turn to page 16 to read Paul Crankshaw’s article.

Environment and Sustainability

Projects and Contracts

Project Profile

Equipment

Products and Services

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COMMENT

As a continent, Africa is expected to grow economically by about 6% annually to 2033. The one factor that can stop Africa from achieving this is infrastructure – particularly the dire lack thereof.

Harbour infrastructure upgrades are essential in unlocking Africa’s growth potential. Durban Port recently upgraded some of its wharfs to increase capacity.

IDE Consulting Services says that the absence of adequate infrastructure costs Africa’s GDP up to 2% a year. It goes on to say that three quarters of Africa’s infrastructure projects do not get off the ground because of infrastructure inadequacies. A reason often cited for this is the lack of funding for such infrastructure development. The World Bank has stated that Africa has to spend USD93-billion until 2020 to bridge this gap. Yet, the truth is that African governments, and other multi and bilateral resources, are already funding about USD4-billion across Africa annually. This is a clear indication that various projects, of a relatively sizeable nature, are happening. There is general consensus that the answer to solve the infrastructure shortage, is that planned projects actually happen – not necessarily finding funding for more projects. In a recent article Ravi Kumar, director of IDE says this will ensure that projects will start to deliver returns, which will in turn attract more investors. There have been enough major projects in Africa to allow one to identify problem areas in the identification, planning and execution of projects: lack of policy frameworks, bad financing frameworks, substandard project and contract management and insufficient monitoring of projects that are being executed. Armed with this knowledge, stakeholders will hopefully not make the same mistakes again. Who is funding Africa’s projects? Development finance institutions and export credit agencies are largely responsible for major infrastructure activity in Africa (building, upgrading and maintaining). These include the World Bank, Development Bank of Southern Africa (DBSA), African Development Bank (ADB) and the Agence Française De Développement (AFD).

Some of the major African infrastructure projects • West African rail network to connect Benin, Burkina Faso, Niger, Ivory Coast, Ghana, Nigeria, and Togo When completed, the rail will be 3 000 km long. • The Grand Ethiopian Renaissance Dam Situated in the Blue Nile, this dam will generate 6 000 MW. • The Mombasa-Kigali Railway Project A 3 000 km long railway, connecting three African states. • Kenya’s Konza Techno City Built on 5 000 acres of land and part of the Kenya Vision 2030. • The Ethiopia-to-Djibouti Rail Link A 650 km railway linking Addis Ababa with the Port of Doraleh in Djibouti • The Grand Inga Dam in the Democratic Republic of Congo situated near the Inga Falls – this dam would have cost USD80-billion when completed. • SolarReserve’s Jasper Solar Power Project in South Africa: SolarReserve has 238 MW of solar projects under construction.

Wilhelm du Plessis Editor

@ConstWorldSA

www.facebook.com/construction-worldmagazinesa

EDITOR & DEPUTY PUBLISHER Wilhelm du Plessis constr@crown.co.za ADVERTISING MANAGER Erna Oosthuizen ernao@crown.co.za LAYOUT & DESIGN Lesley Testa CIRCULATION Karen Smith

PUBLISHER Karen Grant

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The views expressed in this publication are not necessarily those of the editor or the publisher.

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MARKETPLACE

SIZEABLE STEP towards industry transformation The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) has welcomed the launch of RSC Avelo (Avelo) as a big step towards industry transformation. Avelo is a black-woman- youth-owned and managed reinforcing steel (rebar) manufacturer. The company is a QSE and is set to produce at least 12 000 tons of steel per year.

Kyster has made her presence felt in the industry by winning the Most Transformed Company Award in the 2015 SEIFSA Awards for Excellence and by being invited to be one of the speakers at the inaugural Southern African Metals and Engineering Indaba in 2015. Avelo currently employs 25 full-time employees, and contracts up to 50 employees on site through four SMMEs which form part of their Enterprise Development initiatives. Avelo is set to introduce night shifts sometime in the new year in line with anticipated demand, said Komape RSC Avelo Operations Director. Thirty-three-year-old Mayleen Kyster, MD of Avelo, said, “It has been a tough journey, and it is pleasing to see the progress made by the company. In just a year, we have moved swiftly from an EME to a QSE. “RSC is a multinational with 15 businesses across the African continent as well as business in Mauritius. They are shareholders in Avelo with a minority stake in the organisation. The rest of the shares are held by black men, women and youth, with an impressive 58% shareholding held by women. RSC involvement is to provide working capital to the extent that it is needed and this contributes positively to the group’s Enterprise Development initiatives. “RSC Avelo was nominated as one of four Black Industrialist at the 4 th annual SA Premier Business Awards 2016, an awards function which is a collaboration between Proudly SA, Brand South Africa and the department of trade and industry. We appreciate the nomination and acknowledgement as contributors to transforming the manufacturing landscape. We look forward to creating new relationships and further building current relationships to sustain production and create much needed employment, especially given the current depressing economic landscape,” Kyster said. 

“It is encouraging to see young black women such as Mayleen Kyster, MD of RCS Avelo, doing such great work in the industry, especially given the challenges in the manufacturing, engineering and metals industry. “It is refreshing to see new players with a more transformative agenda entering the industry,” said Kaizer Nyatsumba, CEO of Steel and Engineering Industries Federation of Southern Africa, (SEIFSA), speaking at the official launch event held at Avelo’s manufacturing facility in Roodeport. “Kyster together with partners Dorothy Mokgadi and Nkholo Komape’s entrepreneurial spirit has seen them leaving comfortable jobs in the sector to take on the risk of raising capital to venture into the brave world of business ownership, doing so in an industry that is not known for transformation and less renowned for its friendliness or ability to accommodate women, and for this we are pleased,” said Nyatsumba. He highlighted that, within a relatively short space of time,

Mayleen Kyster, MD of RCS Avelo.

About RCS Avelo RCS Avelo is a steel

manufacturer which specialises in the supply of reinforcing steel (rebar), mesh including mining mesh, fencing, brick force, cover blocks as well as structural steel. Avelo also distributes mining roof bolts and other fabricated and manufactured steel.

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MARKETPLACE

2017: FIVE TRENDS in quantity surveying The construction industry has always been cyclic, enjoying a boom for several consecutive years only to face a slump afterwards. Eventually, things pick up again. South Africa's last upward cycle ended around 2010 in step with the global economic crisis. Since then, quantity surveyors have been feeling the pinch. “Unfortunately, this trend looks set to continue into 2017,” says Larry Feinberg, director at the Association for South African Quantity Surveyors (ASAQS).

Department of Trade and Industry (DTI). “While the codes are still open for comment, quantity surveying firms should familiarise themselves to ensure they are prepared in the coming year,” advises Feinberg. Sustainable building In the past, green buildings were assumed to cost nearly 60% more than traditional ones. But a recent study by ASAQS, The Green Building Council of South Africa and the University of Pretoria, using data from 54 green star certified office buildings around the country, shows that costs actually average around 5% and may drop as low as 1,1%. That's a small price to pay for protecting our future. “In 2017, quantity surveyors should take the initiative and recommend sustainable building practices and materials.” Greater efficiency Technologies available to the quantity surveyor appear set to continue developing in line with other industries. Various software packages exist for quantity surveying and they should make the most of suitable technologies. Automation of repetitive tasks brings greater efficiency, resulting in faster service and higher profits. “However, technology is only a tool and cannot replace sound business advice, solve problems or suggest alternatives,” Feinberg cautions. Move to advisory roles Quantity surveyors have always been value enablers in the construction industry. “In 2017 they should strive to promote the results they produce, not just their technical capabilities,” says Feinberg. In a depressed economy, investors hope to do more with less and the quantity surveyor is in a prime position to help them reach that goal. The price of their service is easily offset by the cost savings achieved from their advice on sensible construction choices, such as cost- effective substitutes or avenues for realising lower building life cycle costs. “This means quantity surveyors can thrive, but they will need to work harder to build awareness of the value they add.” “While the forecast for 2017 isn’t ideal, there is a greater need for quantity surveying than ever. “By leveraging every opportunity and proactively promoting their skills to accurately predict building costs, compile fit for purpose tender documentation and then successfully managing project budgets, quantity surveyors will thrive.” 

Battling through the mud during construction of River Bed. The rehabilitation of Bruma Lake, which was a big winner at last year’s Best Projects awards, is an example of sustainable construction of infrastructure – an area where quantity surveyors can assist.

Possible skills gap The #FeesMustFall movement has called into question whether or not 2017 will suffer a skills gap due to a lack of graduates. “We’ve yet to see how this will affect quantity surveying,” says Feinberg. “One must remember, the construction industry is a cornerstone of the South African economy. The government is well aware of the talent required to keep it strong and there’s a huge drive to develop skills in all fields. So the expectation is that there will be sufficient expertise next year.”

Legislation changes Another notable trend for 2017 is the Construction Sector Charter Council’s revised construction sector codes. The new codes are designed to bring the industry in line with the black economic empowerment and transformation targets set by the “In 2017 they should strive to promote the results they produce, not just their technical capabilities.”

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MARKETPLACE

B-BBEE rating and new contract achievements

Multi-disciplinary contractor Liviero ended 2016 on a high note, with a significant B-BBEE achievement and the award of substantial new contracts.

increased challenges of the new BEE codes for the construction sector, when these are promulgated,” he notes, adding that these revised codes will place more testing obligations on companies. New contracts recently awarded to Liviero include Phase III at Liberty Midlands Mall in Pietermaritzburg, for client Stanlib, and the construction of the new Javett Art Gallery at the University of Pretoria. The scope of Liviero Building’s R318-million contract at the popular KwaZulu-Natal shopping centre encompasses extensions to the mall and the addition of a new lifestyle centre and structured parking. The lifestyle centre, located adjacent to the mall, features

The group’s Building and Civil Engineering business units have achieved a Level 1 B-BBEE rating, reports Liviero Group chairman Luca Liviero. “This accomplishment places the Liviero companies in a very strong position in the tendering market and will ensure that we are a preferred contractor for existing and prospective clients. It also positions the operations very favourably to meet the

both retail and office components. Upon completion, Liviero’s contract will increase the floor space by an additional 22 000 m², to a total gross lettable area of over 75 000 m². The company’s R223-million contract to build the new art gallery includes the construction of a concrete bridge spanning Lynnwood Road. “With high value artworks on display, and attracting visitors from around the world, the Javett Art Gallery is a very prestigious project that we are proud to be associated with,” comments Liviero. Both the art gallery and Liberty

Midlands Mall contracts are scheduled for completion in February 2018. 

Digital construction takes off in Durban

Now in its second year, the BIM Institute has evolved to include BIM-educational activities owing to the growing needs of the built environment professionals such as QS, architects, engineers, to be educated about three dimensional design, Building Information Modelling and working in an open data environment where all professionals that are working on a complex infrastructure project can access the same information via the cloud. “The key objective to promoting BIM continuing education at partnered events, such as the Smart Building Summit, Totally Concrete and Cape Construction Expo, is to upskill delegates in BIM methodologies and to optimise the effectiveness of processes and workflows on a BIM project,” says Vaughan Harris, executive director, BIM Institute. The BIM workshops are held over two day events in Durban, Johannesburg and Cape Town. They are targeted at professionals keen to become acquainted with BIM protocols while gaining knowledge exchange from design professionals, contractors and asset managers in the built environment. “We believe this will assist in closing the knowledge gap that exists between us and other first world countries,” adds Harris. The workshops will provide a special platform to educate industry professionals and other key decision makers on implementing international BIM standards and processes on projects in Africa. This will also allow members to engage and understand templates (i.e. BIM execution plan). “3D Modelling is just part of the BIM process and will only drive transformation if it’s combined with wider and deeper support

from the industry, including behaviour, culture, transparency and processes,” concludes Harris. About BIM Institute The overriding objective of the Building Information Modelling (BIM) Institute is to promote the development

Vaughan Harris, executive director, BIM Institute.

and improvement of information technology processes in the construction industry. The Institute recognises that a successful construction industry is essential to us all and now is the time for us to rethink our quality control systems for us all to benefit. We wish to see the dramatic improvements by helping deliver the standards and requirements of the BIM strategy for Africa while also promoting other information technology processes and standards in our industry that can help strengthen South Africa’s construction industry for the future of any construction project implementation and beyond. Partners and affiliated members within the BIM Institute include architects, engineers, contractors, building owners, facility managers, manufacturers, software vendors, information providers, universities and more. For more information, go to www.biminstitute.org.za. 

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PROPERTY

Central and Eastern European INVESTMENT STRATEGY LAUNCHED

Growthpoint Properties announced it will subscribe for an initial 26,9% stake in the London Stock Exchange Alternative Investment Market listed Globalworth Real Estate Investment Limited, the largest owner of office space in Romania.

in CEE real estate markets. It allows us to further diversify our assets internationally and harness opportunities for growth that support sustainable value for our stakeholders.” Growthpoint sees good opportunities in CEE markets, with their relatively high real estate yields and growing demand for quality, modern commercial property. The region represents the globe’s 11 th largest economy. It achieved 3,1% real GDP growth in 2015, nearly double that of the Euro area at 1,6%. What’s more, its growth is expected to exceed 3% over the next five years. This presents a compelling proposition compared with South Africa’s sub-1% growth. The CEE region’s growth is being driven by a young, skilled and cost-effective labour market, competitive industries, EU funded investment in infrastructure, greenfield foreign direct investment in manufacturing, and business process outsourcing from multinational corporations. “There are few assets in the market that meet the firm demand for quality, investment-grade offices,” explains Sasse. “This presents exciting development opportunities in these jurisdictions, especially as multinational corporates are committing on long-term contracts.” With this in mind, Growthpoint sought a partner with an established property portfolio as well as a development acumen. The transaction is subject to the usual conditions precedent, including approvals from the South African Reserve Bank and Globalworth’s shareholders. Already, irrevocable commitments in favour of the transaction had been received from shareholders holding more than 75% of shares in issue. Growthpoint is the largest South African primary listed REIT and strives to be a leading international property company providing space to thrive. It creates value for all stakeholders with innovative and sustainable property solutions. It is the 35 th largest company on the JSE, Growthpoint is a Top 5 constituent of the FTSE. 

Its €186,4-million investment in the Romanian-based real estate developer, owner and manager launches Growthpoint’s Central and Eastern European (CEE) strategy with a conservative market entry point and a high-growth investment platform in a transaction that Growthpoint expects to be accretive to its distributions. Globalworth’s €1-billion property portfolio includes mostly modern A-grade offices, industrial properties, a residential complex, as well as developments. Its portfolio is concentrated in Bucharest, Romania, and underpinned by Euro-denominated leases with many multinational business brands. Globalworth is internally managed by a 70-strong professional team led by CEO, major shareholder and founder Ioannis Papalekas, who has established a respected 15-year track record in all aspects of property in Romania. Subscription of new shares With its subscription for new shares, Growthpoint’s significant capital injection into the company will provide the keyto unlocking exciting new growth, strategies and prospects for Globalworth. Immediately, it enables Globalworth to fully develop and lease up its excellently located 87 800 sqm three-tower A-grade Globalworth Campus multitenant office project in northern Bucharest as well as supporting Globalworth to pursue attractive pre-identified investment opportunities in Romania and the broader CEE region. The transaction also provides a

platform for greater growth through quality developments and accretive acquisitions. In addition, it will enable Globalworth to draw on a deeper pool of equity and access alternative and potentially more cost-effective sources of funding, including from international debt capital markets, to support its future growth. Globalworth will also benefit from Growthpoint’s significant institutional investor following and large and diversified shareholder base. Further, with access to Growthpoint’s institutional knowledge, Globalworth will introduce enhanced governance, an active dividend policy and build its institutional investment appeal with the prospect of greater liquidity for Globalworth's shares. For Growthpoint, the transaction advances its international strategy of yield-enhancing investment alongside local skilled and experienced management teams. The partnership leverages the extensive industry, geographic and investment expertise of its partners. Finding the right partners Commenting on the subscription, Norbert Sasse, CEO of Growthpoint Properties, says: “It has taken us some time to find the right partners and expertise to create a powerful platform for high-growth CEE property investment. Growthpoint is thrilled to embark on this partnership with Globalworth as an established, high-quality, real estate business. It has the people, properties, skills, experience, opportunities and network for growth. We look forward to being part of its phenomenal growth story, to the benefit of our shareholders and investors.” Sasse adds: “We believe Globalworth represents a suitable investment strategy for Growthpoint to access opportunities

Norbert Sasse, CEO of Growthpoint Properties.

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now part of the Menlyn skyline. R4-BILLION TIME SQUARE fully on track Construction of Sun Interna- tional’s R4-billion Time Square casino and hotel development in Menlyn Maine, Tshwane, is fully on track, with the casino due to open on time in April 2017. This will be followed by the 8 000-seat Arena in September 2017 and the

point, and covers over 10 000 m 2 . The weight of the steel used in the roof structure of the casino, hotel, globe bar, arena and dummy globe equals 834 tons. • During the superstructure construction, an average of 300 m 3 of concrete was cast every day, with a truckload every 12 minutes. On one particular day in July 2016, a South African record was set for the longest continuous pour of concrete – 1 550 m 3 over a period of 18 hours poured from a total of 260 cement truckloads. • Once the wet works are complete, the complex will have used a total volume of 106 983 m 3 of concrete, enough to cover approximately 125% of the surface of the Kimberley Big Hole to a depth of 0,5 m. A total of 169 641 m 2 of internal and external plaster for the complex is enough to cover 254 tennis courts. • Laid out top-to-toe, the 7,5-million bricks being used in construction would cover more than the distance between Johannesburg and Cape Town. The complex, when complete, will also include 7 678 m 2 of carpeting and 6 270 m 2 of tiling. • 18 062 m 2 of glass façades will be used when the complex is complete; more than two rugby fields. 

“About 10 000 direct and indirect jobs will have been created during the construction and the initial fit-out. “The development will also generate considerable revenue for both provincial and national government by way of taxes and gaming levies. It is anticipated that around R1,7-billion in gaming taxes and VAT will be generated in the first five years of operation at Menlyn Maine and the total estimated revenue to Government from the project over a five year period is estimated at around R2,7-billion.” Time Square will also offer a new concept in hospitality in that it will offer a range of hotel star accommodation in a single building: 3-star accommodation with 96 rooms, 4-star accommodation with 94 rooms and 5-star accommodation with 48 rooms and suites. Key statistics • It took 50 000 truckloads to remove the 482 650 m 3 of excavated soil removed during the bulk earthworks and super structure construction phases. This is roughly equivalent to the volume of 193 Olympic-sized swimming pools. • The casino roof spans 85 m at its widest

hotel complex in March 2018. Gaming equipment will start moving onto the site in February.

Time Square – which will be the second largest casino in South Africa (after GrandWest) with 2 000 slot machines and 60 tables – represents the biggest development in the hospitality, gaming and leisure industry since the construction of Sun International’s GrandWest Casino in Cape Town, in 2000. Sun International’s Michael Farr, group general manager of brand and communications says: “The complex is now taking shape, with its distinguishing roof

The eastern elevation, which is the main entrance.

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ENVIRONMENT & SUSTAINABILITY

From green fields to GREEN BUILDINGS Sandton Central, without doubt, has become the most important

centuries ago, Bantu-speaking communities of the iron-age inhabited the rocky ridges of the area becoming Sandton’s first industrialists, with an economy based principally on agriculture and metalwork. First settlers The first settlers moved to Sandton after Britain annexed Natal in 1843. Every original Voortrekker male settler who came to the South African Republic (later Transvaal, now Gauteng), was entitled to a farm of his own. Sandfontein was the farm area around Sandton. The Esterhuysen’s were a well- known Voortrekker family who lived on the farm Sandfontein, close to where Sandown High School is today, on the corner of Grayston and Rivonia drives. A wave of urbanisation in the 1930s was driven by widespread poverty in South Africa as the world suffered one of its worst economic depressions. Many people abandoned rural lifestyles for opportunities in the industrial Witwatersrand. 1930s The ‘Southern Suburbs’ of Sandton were laid out quite early in the century and by the thirties they were well established as ‘gentleman estate’ areas with most of the properties being one morgen or larger. At this stage they formed the ‘northern’ suburbs of Johannesburg and in some cases extended beyond the boundaries of the city. The rural ‘horsey’ lifestyle of Sandton led to the area being dubbed the ‘Mink and Manure Belt’ and it was considered a desirable address. 1940s and 1950s During the 1940s and 50s Sandton became increasingly residential and wanted independence from the government’s Peri-Urban areas Health Board, which had control over services such as water. The

local population regarded themselves as an entity separate from Johannesburg. The first moves by Sandton to achieve independence from Johannesburg go back to the early sixties. When it was eventually promulgated as a municipality in 1969, its name formed from a combination of the names Sandtfontein, Bryanston and Sandown. The first few years of Sandton’s existence were dominated by the question of whether Sandton should remain a quite semi-rural dormitory town or be a more balanced entity with significant business and higher density residential components. Bristow reports that it split the town council apart. In 1956 the Peri-Urban board had various large tracts of land for municipal purposes – one of these being the 11 ha site in Sandown where the Civic Centre now stands. Of this, 3,4 ha was sold to the Transvaal Provincial Administration for the building of Sandown Primary School and in 1965 the land directly south of the Civic Centre area was allocated extensive retail and flat rights – the land then belonged to Bob Edmunds, the chairman of Standard Bank, and was sold to property developers Rapp and Maister – now Liberty Properties – in 1968. The first step in transforming Sandton from a farming community to a bustling business district came with Sandton City, which was developed and constructed by Rapp and Maister on this site during the early 1970s, opening for trade in 1974. Commercial rush The rush of commercial space began in the mid to late 1980s when land in Sandton was cheaper than that in the Johannesburg CBD and could also offer a lifestyle with rolling lawns, fountains and low-density,

Not only is Sandton South Africa’s commercial capital, it is also a world-class leading city. “In economic circles, the attractiveness and economic health of an area is measured by a simple guideline – the number of cranes which can be seen on the skyline. Right now, the Sandton Central skyline shows an impressive cluster of cranes,” says Elaine Jack, City Improvement District manager for Sandton Central Management District. So, it may be difficult to imagine that less than 50 years ago Sandton didn’t exist in name – where it stands today was largely a farming and smallholding community. Sandton was promulgated in July 1969 and “at that time there were about 30 000 whites in the town and 15 000 horses”, according to former town planner Barry Bristow. And, while scarcely populated in the years before that, it has a rich, albeit largely uneventful, early history. Greater Sandton’s first residents were middle stone-age hunters who arrived around 30 000 years ago, establishing communities on the granite outcrops of Witkoppen, Lonehill and Norscot Koppies. About 10 000 years ago ancestors of the San people settled. Then, around four corporates, the world’s top multinational companies, the JSE and the iconic Sandton City mega-mall. business and financial node in South Africa, and plausibly sub-Saharan Africa. It is home to many of South Africa’s largest

FROM LEFT: Oxen photographed on William Nicol drive in Sandton, Sandton’s 32 hectares of land in Sandhurst, and Sandton City – Office Towers.

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Today Sandton is the green hub of Africa.

affordable-to-own office space that could not be accommodated in the CBD. The council agreed to approximately 200 000 m 2 of office space – today the figure for central Sandton alone stands at more than 1,5-million square meters and is still growing. Sandton is the second largest office node in South Africa, hot on the heels of the Johannesburg CBD. It has exceptionally

high proportion of prime quality office space. Sandton Central is also said to be the epicenter of green building in Africa with what is possibly the highest number of certified green buildings of any business district. Unarguably, it is home to some of the continent’s finest contemporary business buildings. Yet, even with its rapid development and new office and apartment towers on

the rise, there are still charming traces of Sandton’s relatively brief modern history to be found, like ‘the little church under the pines’ in Stella Street, Sandown, right behind Growthpoint Properties’ 138 West Street, diagonally across the road from the Sandton Gautrain Station. It was the first church in the district and today stands among Sandton Central’s bustling high-rise buildings. 

Demand for green buildings

Real Estate developers are gradually recognising the importance of green buildings in enhancing tenant attraction. Both tenants and property owners have started including elements of sustainability in leases.

Commonly referred to as green leases, they include an upfront establishment of sustainability goals and allocation of implementation responsibilities between the owner and the tenant. The challenge here is inclusion of clauses to deal with non-compliance on either side, which is yet to become a common practice. Also, it is relatively easier for landlords and tenants to include green features in new leases than it is to retrofit them into existing leases or renewals. The large publicly traded retail tenants are the ones that are forcing more sustainable features in buildings and more efficient management. Sustainability is becoming an important influencer in the design of overall business strategy of tenants. According to a 2013 United Nations Global Compact’s Global Corporate Sustainability report, approximately 63% of the respondents are aligning their core business strategy to advance their sustainability goals. For this, real estate developers, on their part, need to keep pace with tenants’ green

demand, with respect to both existing and new leases. Increase in tenant collaboration will likely result in improved satisfaction

By Ravi Kumar, Director of IDE, organisers of Design Mission Africa, Hotelier Summit Africa and Invest Africa.

and subsequently retention. More efficient usage In lieu of an effort to do more with

well-being, therefore resulting in healthier, happier, more satisfied, and ultimately more productive workers. Further, tenants want to meet their corporate environmental and social responsibility goals. For this, tenants need to track, measure, and include data related to utilities consumed in their leased spaces. Hence, leasing decisions are increasingly influenced by green building features that According to the Global Real Estate Sustainability Benchmark (GRESB), investors are increasing their focus on integrating real sustainable practices into their existing and new investments due to the favourable impact of sustainable factors on both risk and returns. Investors are → result in improved productivity and investor interest and are effectively tracked and measured.

fewer resources, tenants are becoming increasingly efficient about usage, which expands from the physical space (square footage) to its utility. They are re-evaluating their physical space to save costs and also enhance the softer benefits at t he workplace. Leading African businesses, and multinational organisations are now shifting their thinking from “how much will green building cost my business” to “how much will not investing in green building cost my business.” While determining this, companies are considering the positive impact of sustainability measures on employee absenteeism, productivity, and well-being. Certain design attributes of a green office building enhance occupant health and

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ENVIRONMENT & SUSTAINABILITY

GBCSA launches Green Star – COMMUNITIES PILOT PROGRAMME

The Green Building Council South Africa (GBCSA) recently announced the launch of the locally applicable version of the Green Star – Communities rating tool in South Africa.

connected and healthy places to live, work and play • Protect, maintain and restore the natural environment by reducing the ecological footprint of developments • Receive recognition for demonstrated leadership and commitment to sustainability • Achieve real value for money through demonstrated whole-of-life cost savings; • Encourage opportunities for business diversity, efficiency, innovation, and economic development.

The tool is a framework that will drive the development of more sustainable neighbourhoods and precincts, ultimately making African cities more sustainable. ‘Green Star – Communities’, developed by the Green Building Council Australia, evaluates the sustainability attributes of the planning, design and construction of large

scale development projects, at a precinct, neighbourhood, and/or community scale. The Green Star – Communities rating tool assists governments, development project teams, contractors and other interested parties aiming to deliver large scale sustainable developments to: • Provide diverse, affordable, inclusive, well

About the pilot projects that are currently targeting Green Star – Communities certification:

Menlyn Maine, Tshwane, developed by Menlyn Maine Holdings

Braamfontein West, JHB, developed by EcoCentric This precinct, bordered by the M1 to the west and Wits University to the north, is a vibrant mix of small businesses, commercial office buildings, student residential accommodation and educational institutions, including the Tshimologong Precinct, Wits University’s tech hub. The existing precinct is in need of regeneration and the Green Star – Communities tool will be used to guide the precinct towards environmental and social resilience; a healthier and safer community; robust economic infrastructure and efficient resource management. Blue Rock, Somerset West, developed by Swisatec A thoroughly unique development which will comprise a hotel and conference centre, commercial offices, healthcare facilities, a restaurant and lifestyle centre, as well as a multi-unit residential estate in a car-free living environment. Lifestyle-enhancing initiatives include landscape trails for jogging, mountain biking and walking; a Vita Parcour permanent fitness trail offering outdoor exercise courses; and a host of water sports on the central quarry dam. Innovative sustainability features include on-site solar energy production and electric shuttle vehicles. Garden Cities: Phase 13 Sunningdale, developed by Garden Cities Situated on the West Coast, just north of Tableview in the Western Cape, Sunningdale, the anticipated village is a 566 100 m² gated residential community. Phase 13 A comprises 427 residential units, and a community centre and education facility, and admin hub. Nature features strongly in the appeal of this development, which borders on the Blaauwberg Nature Reserve, to which Garden Cities has donated 462 hectares. Nature trails, a conservation park, a food garden, parks and cycle paths will all encourage residents to connect with and embrace nature. Sustainability initiatives include solar water heating and LED lighting throughout the residential units and recycling procedures and other green initiatives presently being considered. Kgoro Precinct, Johannesburg, developed by Ceder Park Properties A 200 000 m² mixed use development, Kgoro Precinct is situated in the very heart of Sandton. The precinct offers offices, retail – including on-street retail, hotels, residential and civic/cultural buildings, as well as 4 200 parking bays. A large public square is designed to be the social anchor of community life that promotes broader, more creative interaction. The inclusion of an energy centre, with a view to providing cleaner energy generation, as well as an emphasis on pedestrian and alternative transport usage set this precinct apart.

Menlyn Maine is a mixed used precinct in the City of Tshwane comprising 19 buildings that will encompass commercial office, retail, residential, leisure and entertainment as well as scenic parks. The developers have identified water, energy, transport and waste management as their key sustainability focus areas. The precinct is targeting at least a 4-star Green Star rating for each building, and a Green Star Communities rating for the precinct. Nature’s Path Lifestyle Village, Keurbooms, Plettenberg Bay, developed by PMG Africa Located between Plettenberg Bay and Keurbooms on the scenic Garden Route, this 26,8 hectare residential development will boast 98 homes centred around a wellness centre and restorative gardens, and surrounded by 11 hectares of protected nature reserve. Noteworthy sustainability features of the development include complete lifecycle analysis of materials used; excellent water management including rainwater harvesting, domestic grey water systems and at the wellness centre, and water saving taps and fittings; and the installation of smart meters. Oxford Parks, Johannesburg, developed by Intaprop Developed by Intaprop, this exceptional mixed-use precinct links the Illovo Boulevard with the Rosebank node and will include residential, retail and commercial office typologies, creating a socially and economically interconnected City experience. In line with the principles of a ‘resilient city’, sustainability features will look at creating a pedestrian and cycle friendly public environment; the adaptability of buildings over time; the robustness and flexibility of public spaces; sustainable ways of dealing with stormwater, water and air pollution, shading and cooling; and energy and water efficiencies at building and precinct level. The precinct will target individual building ratings on the commercial mixed use buildings. Sandton Gate, Johannesburg, developed by a joint venture between Abland and Tiber A mixed use development on the perimeter of the Sandton Central Business District, Sandton Gate falls within a High Priority Area (Public Transport Management Area) in terms of the Growth Management Strategy of the City of Johannesburg. The develop- ment will be carried out in multiple phases, the first of which is planned to break ground in the latter half of 2017. At approximately 122 000 m², the precinct will include a mixed use zone, a residential zone and private open space, with building heights ranging between three and 15 storeys. The precinct will target a Green Star Communities rating, as well as individual building ratings on the commercial mixed use buildings.

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Aerial view Kgoro Precinct, Sandton.

Pilot projects There are 14 projects that the GBCSA accepted via a call for pilot projects in August 2016, which form part of the Technical Advisory Panel. These pilot projects are vital early adopters to support the long term success and applicability of this Green Star tool in the African context, because they will provide essential feedback allowing the tool to be appropriately adjusted to the local context. Of these 14 projects, eight have already committed to certification using this tool, targeting either a 4, 5 or 6 Star rating from the GBCSA, with the other 6 seriously considering it reviewing the details. These eight projects already targeting certification are listed below: • Braamfontein West, Johannesburg, led by EcoCentric • Blue Rock, Somerset West, developed by Swisatec • Garden Cities: Phase 13 Sunningdale, Cape Town, developed by Garden Cities • Kgoro Precinct, Johannesburg, developed by Ceder Park Properties • Menlyn Maine, Tshwane, developed by Menlyn Maine Holdings • Nature’s Path Lifestyle Village, Keurbooms, Plettenberg Bay, developed by PMG Africa • Oxford Parks, Johannesburg, developed by Intaprop • Sandton Gate, Johannesburg, developed by a JV between Abland and Tiber

The tool is being launched in South Africa through a stakeholder engagement process that includes a number of pilot neighbourhood scale projects, which will test and be certified by the GBCSA using the framework. The stakeholder engagement process is sponsored by the United States Agency for International Development (USAID) through their South Africa Low Emissions Development Programme and comprises a Technical Advisory Panel including over 30 industry experts who are providing input and guidance on the applicability of the criteria in the Green Star tool in the South African context. The advisory panel includes both private and public sector stakeholders – such as SALGA, the City of Tshwane and Johannesburg – as well as academia. The process will conclude with the release of a Local Context Report in January 2017. Projects can register for certification under this tool from November 2016 onwards. GBCSA CEO, Brian Wilkinson says that green building and sustainability in the built environment is about more than just buildings. “It’s also about the spaces, connections and infrastructure between the buildings, a precinct, a neighbourhood, or a city. At this scale one can truly see the real impact of sustainability and make the connection between various daily activities between home, work, gym, school and entertainment.”

The GBCSA will be reviewing the 'Communities' name of the tool in the African context, to make it more identifiable with neighbourhood/precinct scale sustainable development projects in Africa, and will announce this in the first quarter of 2017. 

→ setting goals to improve the environmental performance across their portfolios through lower carbon emissions, improved energy efficiency, better utilisation of water and other resources, and superior waste management. To effectively pursue and achieve these goals, investors encourage companies to increase transparency and effectively disclose information related to sustainability performance. In summary, with tenants’ business performance increasingly evaluated on a non-financial basis — not just by their customers, but also by investors — the focus on sustainability implementation and measurement of leased space is only going to increase. We believe it is only a matter of time before sustainability implementation and compliance requirements are made more stringent across various nations and geographies. 

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COVER STORY

Contractors learn the VALUE OF TOTAL SOLUTIONS

By Paul Crankshaw

Fleet owners in the construction sector are relying increasingly on original equipment manufacturers to provide a total solution that adds value to their bottom line.

Service-driven Even the most durable trucks need care and assistance to ensure flawless operations. Scania’s total solution provides this, with services including: A Fleet Management System that provides flexible data packages to increase the productivity of fleets; an extensive repair and maintenance network; rental trucks to meet peak demand; roadside assistance; remote diagnostics; finance and insurance; and driver training. from their own yard for weeks at a time. Scania addresses this need with a mobile service unit – a substantial panel van fully equipped with all the necessary servicing equipment, as well as basic equipment for minor repairs. “This option allows a customer to book a service at a convenient time of the week and at just about any location, including remote sites where the truck is operational,” he said. “Judging by the popularity of this service, we expect more customers to be taking advantage of this service option in years to come.” Looking ahead, he also sees potential in the concept of a container workshop in South Africa – which has been used to great effect in many countries; it follows a similar approach to the mobile service units – only larger in scale and capacity. “Large construction sites with a longer life-span could be well served by such a solution, which could be scaled up from one to a number of containers,” said Erasmus. “When the project is complete, the containers can be moved on to their next area of operation.” For customers with more established workshop facilities and the capacity to take on more of their own servicing requirements, there is also the option of becoming accredited by Scania to operate as a recognised outfit serving in-house needs. Inside finance A vital aspect of Scania’s total solution is providing customers with tailored

Slimmer operating margins are also pushing contractors to take full advantage of modern truck technologies – as well as the range of product options and services that make for a revenue- generating investment. For Scania South Africa, this means working with customers to develop a tailored product that will suit their specific application, and supporting the customer with finance, insurance and a service network that is aligned with their needs. Finance for truck acquisition can be arranged through Scania Finance, with flexible solutions that ensure predictable costs and manageable risks over the entire life cycle of each vehicle. Scania’s extensive network of dealers and support services – from repair and maintenance to roadside assistance and parts availability – optimises machine uptime and builds enterprise sustainability among customers. Total solution With a well-established long-haul pop- ulation in South Africa – it commands over a fifth of SA’s market share – Scania is now seeing steady volume growth in the construction sector. “It’s not just about having a reliable product, it’s about having the total solution – which is what the customers in the construction industry are requesting,” said Alexander Taftman, General Manager for Pre-Sales, Segment Support & Marketing at Scania Southern Africa. “What is really important to construction customers is uptime and payload; uptime cannot be guaranteed only by the best product – you have to have the best support package too. Taftman emphasised that the margins in construction were narrow, so vehicles needed to be optimised according to their application. “For instance, every kilogramme of weight saved in the body specification can allow a better payload that will generate more income for a contractor,” he said. “Our approach is to ensure that we address each of the many sub-applications within the construction sector with a range of models

and specifications, to suit each customer’s specific operations.” The focus on uptime among contractors also means that customers require an original equipment manufacturer and supplier that will partner with them in managing their overall fleet performance and maintenance, said Mark Erasmus, General Manager for Scania Services. “Customers want to be able to share the responsibility with the original equipment manufacturer – who has the tools and expertise – for a fixed, regular sum for which they can budget,” said Erasmus. “Many argue that maintaining a truck fleet is not their core business, and they prefer a full service contract.” One of the responses to this requirement is Scania’s Fleet Management System which offers a range of flexible service packages such as Monitoring, Control and Data Access, that allow customers to focus on other important aspects of their business operations. Uptime pressure “With construction becoming so much more competitive, customers are under a great deal of pressure to ensure more uptime,” he said. “For instance, they increasingly don’t have the luxury of time and distance to take trucks out of operation for extended periods for maintenance at a centralised dealer’s workshop. Our responsibility is to make the customer’s experience as painless as possible when their vehicles need to be taken off duty for maintenance or repairs.” To respond to these customer needs, Scania takes a flexible approach; among the smart solutions for regular service work and minor repairs is an on-site facility for customers whose requirements warrant it. “We can set up in the customer’s yard, for instance, so that we are available with our skilled people and our equipment at a location that better suits the customer’s operational requirements,” said Erasmus. Another challenge facing contractors is when their trucks are being employed far from their company base – as is often the case in construction projects. In some cases, their vehicles are away

financial packages that strengthen business sustainability and help customers withstand the cycles of the construction market; this is

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