Construction World January 2022

Construction JANUARY 2022 P U B L I C A T I O N S CROWN COVERING THE WORLD OF CONSTRUCTION

WORLD

FOCUS ON ROADS AND BRIDGES

20 YEARS OF ROLLER HIRE EXCELLENCE

CONTENTS

FEATURES

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05 Knight Piésold’s projects commended at prestigious awards The Emoyeni Reservoir and the Neckartal Dam both received awards. 06 Jet Demolition has received a Noscar award for 20 consecutive years The company continues the recognition of its safety and health work environment. 08 Emerging contractors key to construction sector recovery SA will emerge from its depressed state by empowering contractors. 12 A newstart with AnewHotels & Resorts Group Two major additions to a fast-growing hotel group. 16 Nature shows flexible responses to water uncertainty due to climate change Engineers are embracing the lessons from the natural environment in their designs. 20 Industry recognition testament to successful approach to co-create impact Zutari has received a slew of awards for various projects. 22 Community development a major focus AECOM has been responsible for skills transfer on R573 upgrade. 24 Vital to understand, monitor ground when excavating The importance of engaging the right geotechnical expertise. 26 Ashton Arch Bridg e SA’s first concrete tied-arch constructed bridge.

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24

ON THE COVER

REGULARS 04 MARKETPLACE 12 PROPERTY 16 ENVIRONMENT & SUSTAINABILITY 20 ROAD & BRIDGES

Construction World spoke to Eric Laynes, Managing Director of Eric’s Roller Hire, a Benoni-based company. It was established in 2002, when Laynes noticed that there was an opportunity in the market for the rental of equipment that is in a good condition. The company has provided excellence in roller hire for 20 years through its uncompromising focus on customer service, cost-effectiveness and the maximal uptime that it provides to customers. Read the article on pages 18 and 19

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COMMENT

The Afrimat Construction Index (ACI) for the third quarter of 2021 provided some positive news at the start of 2022.

in the third quarter. With semigration still a reality, experts say that this phenomenon will remain a positive aspect in the building and construction landscape. Botha maintains that the momentum this sector currently has will continue in 2022. He bases his optimism on the following factors: • There is a need to repair and maintain infrastructure as some projects had to be delayed because of lockdowns • Promises made during recent municipal elections about the improvement of service delivery • Renewed business confidence • The positive financial performance of companies in the construction and materials sectors of the JSE. With such positive trends and forecasts, here is hoping that 2022 will indeed be a positive one for the built environment. Stay safe Wilhelm du Plessis Editor

building and construction sectors are outperforming other sectors in the domestic market. In fact, says Statistics South Africa, the gross domestic product shrank by 0,3% when the second and third quarters of 2021 are compared. The report says that a full recovery of the building and construction sectors will most likely be realised this year as the ACI’s index is still 5% less than the value recorded in the third quarter of 2019. The 2,8% increase in the ACI is due to building material sales, hardware retail sales, the volume of building materials produced and the value of buildings completed by some of the country’s larger municipalities. The ACI consists of nine indicators – and just three of these had negative outcomes. Botha indicated that, when considering the year-on year performance, eight of the nine indicators showed positive growth rates. One of the stand out aspects of the report is that the share of alterations and additions make up 29%

I n the second quarter of 2020, the ACI staged a dramatic recovery of 60% from the slump that COVID-19’s lockdowns caused. However, this was short-lived as subsequent quarters failed to manage significant increases. However, the third quarter of 2021 recorded a 2,8% quarter-on-quarter increase. The ACI is a composite index of the level of activity in the building and construction sectors and is compiled for Afrimat by respected economist, Dr. Roelof Botha. As the year starts for the construction industry, it is especially encouraging to note that the

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MARKET PLACE

Sika has signed a definitive agreement to acquire the MBCC Group, the former BASF Construction Chemicals, from an affiliate of Lone Star Funds, a global private equity firm, for a consideration of CHF5,5b. The MBCC Group is a leading supplier in construction chemicals worldwide. T he acquisition will complement and broaden Sika’s product and solution offerings in four of five core SIKA TO ACQUIRE MBCC GROUP

extremely capable global teams that will support a strong sustainability footprint for the future. Today, 70% of Sika’s sales is generated by products that have a positive effect on sustainability, whereas more than 35% of MBCC Group products are sustainably advanced. Through the combination, Sika is committed to generating 80% of its sales from products that positively impact sustainability. Financial parameters The complementary operational and manufacturing footprint of Sika and MBCC Group is expected to drive attractive integration opportunities, encompassing revenue as well as cost synergies. Annual synergies are expected to be in the range of CHF160 - 180 million by 2025. The purchase price represents a 11,5x EV/pro forma 2022E EBITDA multiple which will come down to 8,5x EV/ EBITDA, including run-rate synergies. The acquisition is value-enhancing to Sika shareholders and is expected to be strongly accretive to Sika’s earnings per share from the first full year post closing. The financing of the planned transaction is secured by a bridge loan facility. Sika remains committed to maintaining a strong investment grade credit rating and intends to put in place a long-term funding structure comprising a combination of cash-on-hand, bank loans, and capital markets instruments. The acquisition is subject to regulatory approval. Sika is confident it will obtain all clearances and will actively engage with the authorities. The closing of the acquisition is targeted for the second half of 2022.  • MBCC Group is one of the most recognized companies in construction chemicals worldwide with sales of approximately CHF2,9b. • Enterprise value of CHF5,5b represents a 11,5x EV/pro forma 2022E EBITDA multiple with expected annual synergies of CHF160 - 180 million bringing the multiple down to 8,5x EV/EBITDA. • Transaction is highly complementary across almost all of Sika’s core technologies, applications, and solutions. • Acquisition is accretive to Sika’s earnings per share from the first full year post closing. • The combined company will drive the sustainability transformation of the construction industry further and faster. • Transaction is subject to regulatory approval, but Sika is confident that all required clearances will be obtained. Closing targeted for the second half of 2022.

technologies and seven of eight Sika Target Markets and will further strengthen its geographic footprint. The combined business will be a key accelerator in enabling both Sika’s and MBCC Group’s customers and the construction industry to drive the sustainable transformation further and faster. MBCC Group, headquartered in Mannheim, Germany, is active in the field of construction systems and admixture systems. With approximately 7 500 employees MBCC Group has operations in over 60 countries and more than 130 production facilities. In 2021, the company is expected to generate net sales of CHF 2,9b. MBCC Group has a world- renowned product portfolio of global and local brands which enjoy a strong reputation for quality and reliability. With its broad and balanced product offering, MBCC Group participates in all phases of the construction life cycle and is a key contributor to the decarbonization of the construction industry. Thomas Hasler, CEO of Sika says, “Two sustainability champions will join forces. Sika is first in class for sustainable solutions across the entire construction industry, and similarly, sustainability stands at the core of MBCC Group’s business. Together we will reinforce our complementary range of products and services across the entire construction life cycle. With our combined portfolio, we will enable and accelerate the future of sustainable construction for the benefit of customers, employees, shareholders, and coming generations.” Jochen Fabritius, CEO of MBCC Group adds, “We have found a perfect partner who shares our core beliefs. Sika is well-known for its entrepreneurial spirit and its profitable growth strategy, including a strong acquisition track record. Our products and competencies will again be at the core of the business. Together with Sika, we are looking forward to exploring new and exciting business opportunities. I would like to thank Lone Star for the tremendous support during the past few years and for helping us to prepare for this next chapter.” The transaction will accelerate Sika’s resilient Growth Strategy 2023 and beyond. Sika will expand its product and service offering in construction chemicals and industrial adhesives by adding the highly complementary portfolio of MBCC Group and is set to reach sales in excess of CHF13b in 2023. The combination will lead to a very balanced product portfolio with all of Sika’s Target Markets achieving between CHF 1 and 2 billion in sales. Customers will benefit from an enhanced and more efficient distribution network across all construction markets. Sustainability stands at the core of both companies. As such, the acquisition combines two highly motivated and

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KNIGHT PIÉSOLD’s PROJECTS COMMENDED AT PRESTIGIOUS AWARDS C onsulting engineering firm Knight Piésold’s engineering River, has a crest length of 520 m and a height of 80 m, capable of storing 850 m³ of water.

excellence was recognised through two of its projects, which received high commendations in the consulting engineer category at the Construction World 2021 Best Projects Awards. The projects were the Emoyeni Reservoir in KwaZulu-Natal, in South Africa, and the Neckartal Dam in Namibia. The company was appointed by eThekwini Municipality’s Water and Sanitation Unit as the consulting engineer for the design and construction supervision of the proposed 30 M ℓ rectangular reinforced concrete reservoir at the Emoyeni Reservoir site. Knight Piésold lead engineer Kendall Slater explained that in addition to the reservoir design, the company carried out hydraulic modelling of the combined Knelsby and Emoyeni reticulation systems, and made recommendations

Gunter Leicher, Country Manager for Knight Piésold Africa in Namibia, explains that the company has had a presence in the country for the past 12 years making its mark through its involvement in the Neckartal Dam project – the country’s largest dam. Sharlenee Moodley, Marketing Lead for Knight Piesold Southern Africa explains that these projects being recognized testifies the excellence and quality of the employees of the company in executing projects. “This year marks a historic milestone for Knight Piésold as we celebrated our centenary anniversary. We are so proud of the achievements that the company continues to showcase through its strong strategic focus on sustainable development, innovation, and technical excellence.” 

on upgrades required. The proposed Emoyeni Reservoir site is located in Hillcrest in the Outer West region of the eThekwini municipality. “The design and construction of the Emoyeni Reservoir utilized unique design and construction methods that are not commonly used in conventional reservoir projects. The project faced several challenges such as limited working space, working in a high-density residential area, COVID-19, as well as untried methods.” Meanwhile, the Neckartal Dam, which is located outside Keetmanshoop in the south of Namibia, is a curved gravity dam constructed with roller compacted concrete. The structure, across the Fish

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MARKET PLACE

JET DEMOLITION HAS RECEIVED A NOSCAR AWARD FOR 20 CONSECUTIVE YEARS

The NOSCAR award is the highest rating in the NOSA system, and recognises companies that commit to continuously provide a safe and healthy work environment for their employees. Jet Demolition has received a NOSCAR award for 20 consecutive years to date, with an impressive 95% score, reports Safety Manager Marthinus Botha , who has been with the company for 13 years.

T he demolition expert has an integrated safety management in place that combines the ISO 45000 family – Occupational health and safety with the ISO 9000 family – Quality management and the CMB253 NOSA Integrated Five Star System. “We operate within a particular environment that has its own requirements in terms of health and safety. We need to understand those challenges in order to be able to comply with them. We also use these challenges as a learning exercise to bolster our own safety system, adding to its robustness,” comments Botha. Apart from training being a mandatory requirement, Botha points out that, if applied correctly and diligently, it mitigates risk, reduces overall costs and allows Jet Demolition to meet its employees’ professional aspirations. “Training is an intensive process because demolition is such a dangerous practice,” he acknowledges. The workforce employed varies from project to project, but generally stands at about 200. “When we onboard new employees, we will obviously not place them straightaway in high-risk positions. Instead, they start out at lower-level positions in order for them to gain a good understanding of their environment and its requirements.” This includes occupation-specific training such as asbestos-handling and gas-cutting. Demolition itself does not only encompass buildings, but includes mining and industrial structures such as minerals-processing plants, smelters and power stations. “We even deal with radiological materials as well, so it is quite a broad spectrum,” notes Botha. The engineering and SHEQ teams collaborate closely and will, firstly, visit a site to determine the safest, most cost-effective demolition method to be used. “We will then ensure that the structure is removed with minimal impact on the environment, the local community and the public in general. Going out to see the actual project is a critical part of the process in order to understand the client requirements,” stresses Botha. The most important end result of demolition is “to preserve the environment for future generations. We cannot emphasise that enough. We take our commitment to the environment very seriously, and that is how we approach all of our projects, no matter the size, complexity or industry.” Due to the fact that demolition is quite a mechanical process, Jet Demolition has an extensive fleet of equipment, including some highly specialised and even customised machines. “We use more industrial and earthmoving equipment than is traditionally the case with

“Training is an intensive process because demolition is such a dangerous practice.” Marthinus Botha, Safety Manager – Jet Demolition.

construction,” adds Botha. Here specific safety measures such as CCTV, reverse cameras, pedestrian alert systems, barrier systems and two-way radio and alarm systems have been incorporated. In addition, the demolition methods employed by the company have been designed in such a way so as to reduce the requirement for staff on-site. Other innovations include a quick-coupling system developed in-house for easy switching between a bucket, a hammer and a shears on an excavator, for example. “We have a lot of specialised equipment that reduces our need for manual labour, including patented explosive charges for maximum safety.” Despite all of this, Botha says the most important aspect is to maintain close contact with all employees and ensure that a safety culture is inculcated. Looking at the impact of COVID-19, Botha reveals that Jet Demolition has embarked on a major awareness campaign in various languages, as well as complying with all sanitation and social distancing regulations. “We encourage vaccination, and actively participate with our teams to help foster a safe working environment. Our teams are also empowered to act responsibly in the face of adversity, and are supported and encouraged in safe work practices and approaches. Apart from the required daily screening, additional measures include a staggered work-hours approach in order to keep physical interaction at a minimum.” Botha concludes: “Jet Demolition is a company comprising one team and one vision, which is to provide our clients with the best service possible. Demolition is a rewarding career path with plenty of opportunities for growth and learning. It is a career where you can be part of a team and literally see the impact that you make on the environment around you.” 

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SVA INTERNATIONAL APPOINTS BHEKI VILAKAZI AS MD

P remier African architectural practice, SVA International (SVAI) has appointed Bheki Vilakazi as its new Managing Director, effective October 2021. SVAI is a member of the GIBB Group of Companies, and GIBB Engineering, which jointly aim to provide comprehensive solutions to property developers and contractors’ clients. As a part of GIBB’s Property Delivery Unit, SVAI provides integrated, comprehensive building-service offerings. GIBB Property Delivery Unit’s capabilities cover engineering, architecture, building electronics, health, safety, environmental and sustainability, town planning and urban planning, tenant management and building-management systems. Vilakazi is an economics graduate from the University of the Witwatersrand, with supplementary certificates in corporate governance, executive development and construction management from Rand Afrikaans University, Wits Business School and Stellenbosch University respectively. Currently, he is completing his MBA at the Business School Netherlands. “My goal is to provide clarity of direction and pull everyone in the company around the same vision, while also ensuring that the business is properly diversified, with a continuing focus on business development”, remarks Vilakazi. Given his extensive years in the built environment and particularly with more than 15 years of executive experience under his belt, Vilakazi has demonstrated an impressive ability to enhance business optimization and profitability while driving transformation within both JSE-listed and non-listed entities. In particular, Vilakazi contributions and leadership in the residential space have resulted in the delivery of various flagship social housing projects in South Africa. “It’s our pleasure to welcome Vilakazi to SVAI and by extension the GIBB Group. We look forward to a sustained and fruitful tenure. We have full confidence in his ability to further enhance SVAI’s legacy of offering inclusive design-led, creative and viable solutions to our clients,” concludes GIBB Group CEO, Richard Vries. 

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MARKET PLACE

The construction sector can lead South Africa’s recovery as the country emerges into a post-COVID-19 economy, but only if emerging contractors are empowered. By Bongani Dladla, Acting Chief Executive Officer of the cidb. EMERGING CONTRACTORS KEY TO T his was the consensus among participants at a recent seminar on the state of the industry hosted by the destroying assets and threatening the lives of contractors and their workers. One of the participants at the seminar, CONSTRUCTION SECTOR RECOVERY

Mr Gregory Mofokeng, the CEO of the Black Business Council in the Built Environment, emphasised the role construction can play in the reindustrialisation of the economy. This can be done through the implementation of localisation programmes where local building materials are used, local expertise is utilised, and local jobs created. At the same time the local industry is not isolated from global trends. Dr Obuks Ejohwomu from the University of Manchester reminded participants about the high contribution of construction to global emissions and air pollution. The UN Climate Conference – COP 26 – held in Glasgow this month will, no doubt, revise targets for pollution and set new standards to which the construction industry should respond. The introduction of technology-driven solutions brought on by the 4 th industrial Revolution will also bring about profound changes to the sector. Construction 4.0 – the integration of 4IR advances into the industry – will revolutionise processes across the entire spectrum of activities. Some of these innovations are already being deployed with great success in the South African industry. Already, many emerging local contractors are embracing new technologies and strengthening their positions within the construction value chain. It is important that the local construction sector should be empowered to benefit from the expected upswing in the post- COVID economy. A keen observer of the local sector, Prof Roger Flanagan of the University of Reading in the United Kingdom predicted that the global construction industry will be at the leading edge of the recovery and that South Africa needs to be part of it. He emphasised the fact that it is located in the fastest growing region in Africa and is globally known for its ability to produce great construction companies and contractors who are admired for their competence. The challenges will be to broaden the sector, support emerging contractors – especially black-owned and female- owned businesses – and attract a new generation of entrepreneurs to the sector. The seminar, which will become an annual event, again showed that the cidb is well-placed to play a catalytic role to lead industry stakeholders in construction development. We will be a vital element in the re-emergence of a transformed construction industry which provides the physical infrastructure that makes up the backbone of our country’s economic activity. 

Construction Industry Development Board – cidb. The seminar, attended by more than 700 participants, underscored the role played by the cidb in facilitating the exchange of ideas and opinions which will lead to the transformation of the construction industry. In addition to its primary mandate to promote the contribution of the construction industry to South Africa’s economy and society the cidb also provides a platform where participants in the sector can share research on trends within the sector and relate best practices. There were justifiable concerns about the sharp decrease in construction activity following the outbreak of the COVID pandemic. This was especially felt within the public sector where the cidb plays a critical role to ensure efficient and effective infrastructure delivery. However, there is also significant room for optimism. Investment in infrastructure is a key component of the Economic Reconstruction and Recovery Plan announced by President Cyril Ramaphosa. The plan calls for “aggressive infrastructure investment” with a strong emphasis on localisation, job creation and streamlining of the regulatory framework. Some of the green shoots are already visible. At the recent Sustainable Infrastructure Development Symposium – SIDSSA 2021 – details were announced of a pipeline of 55 project with a project value of R595b. This can create an estimated 583 500 direct and indirect jobs. Participants at the cidb seminar expressed strong views that emerging contractors should benefit fully from the pending upswing in building activity and opportunities should be created in which they can improve their grading and become increasingly eligible for major projects. Concurrently, the public sector must significantly improve its capacity to manage infrastructure projects under its control and address long-standing concerns within the industry about delays in the awarding of contracts, delays in the implementation of projects and late payments to contractors. There are expectations that private sector skills will, increasingly, be drawn in to address issues pertaining to capacity. Again, the cidb, with its experience gained in almost two decades, can make valuable contributions to the dialogues and consultations within the industry. Similarly, there are stronger voices speaking out about endemic corruption and the activities of the so-called ‘construction mafia’ which are delaying vital projects,

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While the South African GDP has seen some growth in the last four quarters, the construction industry remains key to expediting the recovery and creating jobs, according to CFO of privately-owned construction company, GVK-Siya Zama, John de Sousa. D e Sousa has been at GVK-Siya Zama for more than two decades, playing a pivotal role in the growth of the CONSTRUCTION INDUSTRY HOLDS KEY ROLE IN ECONOMIC RECOVERY

business and says that, over the past five years, the company has seen annual turnover grow 20% year on year, despite the global pandemic. This was achieved while many of GVK-Siya Zama’s competitors, including several listed companies, went out of business in some of the most treacherous conditions the economy has ever faced. De Sousa says the initial stages of the pandemic didn’t have the dire impact initially expected as projects were already on their books, but investor sentiment declined rapidly during the hard lockdown which led to a downturn in the company’s order book in the early part of 2021. “As investor confidence has since improved and the different stages of lockdown have eased, we’ve seen a glimmer of hope and recovery with more opportunities on the horizon.” The key to GVK-Siya Zama’s survival over this time has been its hands-on approach. “During the initial lockdown period, we spent our days in online team strategy sessions to mitigate risk, manage costs and keeping our teams involved, motivated and productive.” Investor sentiment has started to shift since Q3 this year and De Sousa says this augurs well for the industry and the country. “We are hoping to see the fruits of this in the next year as Covid gradually loses its grip on the country.” Another catalyst to the recovery of the industry will be government infrastructure spend which is critical for job creation and economic recovery. "Government infrastructure spend and the rollout of projects and services to communities remain critical to the wellbeing of our country and its people. Government can jumpstart the economy and create numerous jobs through infrastructure spend. In turn, the construction industry plays a multifaceted role in economic growth through skills transfer, SMME growth and development, and creating local employment in communities where projects are taking place,” explains De Sousa. Today, De Sousa and his

John de Sousa, GVK-Siya Zama's CFO.

“In the last decade, we’ve grown to become a fully-fledged building contractor and count as one of the biggest privately owned national construction companies in the country. Our step up to the major league, combined with people-centric employment practices has positioned us as a preferred employer who attracts some of the best talent in the industry,” says De Sousa. In conclusion, he says the construction industry remains one of the most inefficient industries, and the company’s focus remains on reducing inefficiencies and subsequently, improving bottom-line. 

executive colleagues lead a modernised construction company with a young, hands- on management team. This approach, coupled with an ethos of integrity and hard work, has contributed to the business’s steady growth trajectory since 2015. The evolution of the company has seen this former painting and renovation contractor join the construction big league with big ticket projects

“As investor confidence has since improved and the different stages of lockdown have eased, we’ve seen a glimmer of hope and recovery with more opportunities on the horizon.”

of increased complexity requiring top notch skills and big match temperament.

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MARKET PLACE

IT’S IN THE SIGNS: KEEPING DISABLED EMPLOYEES SAFE DURING A FIRE Ensuring the safety and wellbeing of employees in the event of a fire is a crucial part of fire safety protocol for every business, but does your business cater to employees with disabilities? W ith the increase of fires in buildings across the country, businesses need to re-evaluate their emergency evacuation plans regularly to ensure the safety and wellbeing of all employees. Having the right safety and evacuation protocols in place is crucial in preventing injury and loss of life in the event of a fire breaking out. The primary objective when a fire breaks out is to ensure everyone can get to safety quickly and efficiently. People with disabilities need to be considered in these plans, and the first step in this process is ensuring the unique needs of people with disabilities are considered in fire safety signage. Signage that indicates specific exits for the physically impaired must be provided for, along with signs directing people to assembly points or ‘areas of refuge’ specifically designated for those in wheelchairs. There are alternative safety measures that businesses can employ for people with disabilities of other varieties, such as vision or hearing impediments. However, Dean Gopal, Product Manager of Eaton’s Life and Safety Division for Africa explains that there is a wide range of ability in the spectrum of ‘disability’ – from physical disabilities that impair an individual’s ability to walk to an exit or hear a fire alarm, to learning disabilities that make understanding evacuation instructions challenging. It’s important to ensure that all safety and evacuation signs take this into account. Building on decades of expertise in life safety systems, Eaton’s adaptive evacuation systems make use of illuminated evacuation signs that intuitively direct building occupants away from danger and toward the safest possible exit. Considering only 38% of people see safety signage during an emergency, Eaton’s self-contained emergency lighting, which

public address or voice alarm solutions, which can also help guide the visually, physically and learning disabled to safety by providing recorded or live safety instructions in audio form,” says Gopal. Safeguard the wellbeing of all employees by ensuring that people with disabilities are adequately provided for in emergency planning. Installing effective and intuitively designed safety signage at key points in commercial buildings is a crucial part of this.  Eaton’s mission is to improve the quality of life and the environment with power management technologies and services. It provides sustainable solutions that help customers effectively manage electrical, hydraulic, and mechanical power – more safely, more efficiently, and more reliably. Eaton’s 2020 revenues were USD17,9b and it sellsproducts to customers in more than 175 countries.

can be set to flash or pulse, is a highly effective safety measure for emergencies. Not only is it effective in helping the visually impaired find their way to the nearest exit, but it ensures everyone takes note of safety signs, effectively speeding up evacuations. As such, this system assists all employees to move toward the correct exit to avoid confusion and wasting valuable seconds that could place lives in danger. “Adaptive evacuation systems work particularly well alongside

“Safeguard the wellbeing of all employees by ensuring that people with disabilities are adequately provided for in emergency planning.”

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PROPERTY

ANEW Hotels & Resorts, one of the fastest-growing hotel groups in the country, has added two more feathers to its cap. The brand announced the grand opening of ANEW Hotel Parktonian (formerly Protea Hotel by Marriott Johannesburg Parktonian) in Braamfontein and ANEW Hotel Roodepoort (formerly Protea Hotel Roodepoort) on 1 November 2021. These additions are exciting for the hotel group, which has managed to scale its business and grow its already impressive portfolio of hotels in the midst of a pandemic. A NEW START WITH ANEW HOTELS & RESORTS HOTEL GROUP

A NEW Hotel Parktonian will be the largest hotel in the group’s portfolio, boasting 300 tastefully appointed rooms and the most extensive conferencing facilities within Braamfontein’s central node. According to ANEW Hotels & Resorts CEO Clinton Armour, ANEW Hotel Parktonian is a premium product ideally located to service the entire business node. “The hotel is located right near the Park Gautrain Station, the Johannesburg municipality and the Joburg Theatre.” In addition to its sought-after location, the hotel also has incredible potential for combining business and leisure. Adds Clinton, “The rooftop bar on the 25 th floor and heated rim-flow pool are indeed magnificent, while various other unique selling points set this hotel apart from other competitors.” ANEW Hotel Roodepoort is also ideally located close to all business hubs in Johannesburg. Adds Armour, “The ANEW Hotel Roodepoort is in proximity to the N1, linking the property to various suburbs in Johannesburg, including

“We’re looking for partners and properties for the long haul. We’re not in it for the short term or to try and find quick deals. “These hotels are both in a really great state, setting us up for a successful November launch. With their central location and unique selling points, we’re confident that local and international visitors will really resonate with these hotels, whether as a base to explore or to fulfil their business and conferencing needs. “As a business, we know how to operate within this environment and how to be as adaptable and flexible as possible. We’re looking forward to the future and have some exciting things in the pipeline, including our first Western Cape property.” Armour ends with the importance of investing in the country. “In addition to offering premium products, our goal is to really expand domestic travel in South Africa. We want locals to experience the best of what our country has to offer. And, we hope to do this by continuing to invest in local properties and introducing them to exciting new market segments. When you invest in South Africa, you will see great potential for future success.” 

with on-site dining, meeting rooms and WiFi connectivity throughout.” For leisure seekers, shopping centres like Clearwater Mall and Cresta Shopping Centre are close by, as well as Randpark Golf Course, the Walter Sisulu Botanical Gardens, Soccer City Stadium and the Johannesburg Zoo, among others. Shared values and fostering relationships While taking over two hotels in such central locations can be challenging, especially during such a critical time in the hospitality industry, Armour states that it’s ANEW’s values of Honesty, Integrity, Teamwork, Excellence and Courage (HITEC) that drive the brand’s success. “We are a family business, and we bring those values to everything we do, while our entrepreneurial flair can help us take these hotels forward. ANEW Hotel Parktonian has been run by Ron and Karen Spies and their family for many years, and our shared values very much lend itself to a great working relationship. We’re incredibly excited to

Northcliff, Krugersdorp, Soweto, Sandton, Johannesburg CBD and

take these hotels into the future.” Armour continues that ANEW’s

Randburg. This location makes it easy for business travellers to connect to these key centres while still enjoying a peaceful and amenity-rich environment, complete

fundamental strategy has always been to find the right partners to help build the brand sustainably into the future.

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Canal Walk Shopping Centre, Cape Town, celebrated 21 years of retail excellence on 26 October 2021. When Canal Walk opened 21 years ago, it was billed as the most ambitious retail development in Africa and has since proven to be one of the best. ICONIC CANAL WALK HAS MUCH TO CELEBRATE ON ITS 21 ST BIRTHDAY

entertainment experience, is still innovating, improving, and delighting guests by adapting and evolving with exciting retailers. Its scale, success and agility have continuously secured Canal Walk highly sought-after tenancies and leading brands – many being retail firsts for Cape Town and even the country. Other brand-new stores to open at the mall in 2021 so far include Adidas Women, Birkenstock, Trecastelli, Vuse, Calamari Fisheries, Under Armour, De Jagers, and Nicci Boutique. In addition, Diesel, Foschini, Fabiani, Seattle Coffee Company, Crocs and @home all opened in new locations in the mall. Keeping pace with the latest trends, Tread+Miller, Superga,

Sportscene, Bargain Books and Samsung introduced their new concept store to the centre and Shesha extended to introduce a Hoops Lounge to its store. There’s even more to look forward to at Canal Walk in the next while, some highlights include Clicks Baby opening, Totalsports getting bigger, Exact relocating and Rochester joining the Boulevard stores to complement the offering of stand-alone flagship retail. Zara will be opening at Canal Walk in early 2022, offering its women’s, men’s, and kids’ ranges. Canal Walk’s impressive success isn’t built on retail and leisure alone. The role it plays for its community and in its city makes it a real asset. The centre’s text-book location is the key to its success. It is central to the Century City development – a 250 ha business and lifestyle precinct with a mixed-use urban environment which combines office, retail, residential, and leisure components – which is being developed around the mall by Rabie Property Group, and at the same time growing Canal Walk’s primary shopper market. Canal Walk also benefits from excellent access directly from the N1 and is centrally situated to environmentally sustainable, the Green Building Council of South Africa (GBCSA) awarded Canal Walk a 5-Star Existing Building Performance v1 green rating last year. Contributing to its eco-friendly operation are its waste yard with on-site recycling and composting, which diverts refuse from landfill. It has also added greater water-efficiency to its operations by using grey water and adding more water-efficient features to its bathrooms. “I have no doubt that the next 21 years will be as exciting and rewarding for Canal Walk as the past 21 years,” says Wood. “The solid foundations built over the past two decades, and our deep collective commitment to service excellence and meeting the needs and expectations of our customers ensures that Canal Walk has a very bright future indeed.”  the Cape Town CBD and surrounding suburbs. For making the Mother City greener and more

C anal Walk opened in October 2000 with an estimated build cost of R1,3b and, at the time, the mall spanned 125 000 m 2 retail space and 9 600 m 2 office space. It was acquired by its current co-owners Hyprop Investments (80%) and Ellerine Bros (20%) in 2003 and has consistently grown in popularity, relevance, and size to become one of the most successful shopping centres in the country. The centre has evolved and expanded to meet shopper needs and retailer concepts, extending and updating its offering. Today, the retail icon stands at 149 069 m 2 gross lettable area. Over the last 21 years, Canal Walk has continued to bring its customers new store openings, fresh facilities, and its industry- leading eco-innovation, as it continues to adapt to the evolving needs of its customers and the changing retail landscape. The super-regional has also kept pace with rapidly advancing technology, such as offering customers free uncapped Wi-Fi. “The past 21 years have been full of exciting highlights at Canal Walk. The mall has enjoyed the love and loyalty of customers from across Cape Town, the Western Cape and further afield, and earned and retained the respect of the retailer community. We are excited to be celebrating our 21 st anniversary. It is a great opportunity to extend our appreciation to our loyal shoppers - the most important ingredient in our success - and to thank everyone who has supported and partnered with the mall on this amazing 21-year journey so far. All our tenants have been integral to Canal Walk’s success story, but special mention must be made of those who have been with the centre for all 21 years,” says Gavin Wood, CEO of Canal Walk Shopping Centre. Key to Canal Walk’s success is its excellent accessibility, superbly convenient trading hours from 9:00 to 21:00 daily, and wide variety of brands, leisure, entertainment, and convenience, all located under one roof. This mall that first opened with a one-of-a-kind, majestic shopping and

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PROPERTY

NEW OPPORTUNITIES EMERGE IN AFRICA AS BROLL LOOKS BEYOND 2021 Leading Pan-African professional real-estate services provider Broll Property Group has observed various trends across the broad range of countries in which it operates. Highlighting and analysing these trends is an important part of Broll’s strategy to look ‘Beyond 2021’, in addition to ‘Strengthening the Core’ of the business as it focuses on the specific requirements of occupiers and investors during the COVID-19 pandemic. While this has disrupted the property market across the board, new niche asset classes are also emerging.

“O ur success is built on our in-depth knowledge and expertise, based on our tangible understanding of local markets across Africa. This allows us to provide end-to- end real estate solutions based on strategic, fully-integrated property services for both the occupier and investor segments,” says Broll Group CEO Malcolm Horne. “As a leading provider of end-to-end real estate solutions, an interesting correlation that we are monitoring is the potential relationship between the vaccination rollout in Africa and the associated economic recovery across the continent,” says Horne. This is particularly important to Broll’s mission of leveraging its industry-leading, patented technology platforms to enhance asset values in a sustainable real estate market. Broll maintains a diversified portfolio of clients and services across 13 African countries, including Botswana, Cameroon, Eswatini, Ghana, Ivory Coast, Kenya, Madagascar, Mauritius, Mozambique, Namibia, Nigeria, Réunion, Seychelles, South Africa, Uganda, Zambia. Level 1 B-BBEE and 51% black-women owned, it has leased 737 325 m 2 of retail space across Africa in the past five years. “Our vision is to be the leading professional real estate service provider and the preferred place of employment for real estate professionals. We progressively strive to develop collaborative partnerships, based on transparency and mutual trust, which serve to build enduring client relationships. As we continue to expand, we’re committed to these principles, which have served our group and clients since 1975,” says Horne. “It is important to be future-focused, and while we are all looking forward to returning to the ‘new normal’, this is playing out differently across different countries,” says Jose Castiho, Managing Partner of Broll Mozambique. For example, while elsewhere there is an accelerating trend for multinationals to return to the office, this trend is not yet that noticeable in Mozambique. “Besides COVID-19, there are other factors that have affected the oil and gas projects under development in our country. These were halted temporarily, which has had a major impact, as they are the main drivers of our economy. The good news is that these are likely to kickstart again from 2022 to 2024,” says Castiho. While Mozambique waits for its oil and gas sector to bounce back, many companies are taking the opportunity to reorganise their office space and relocate to higher-grade buildings. “This is, in fact, what we anticipate for the next 24 months, as companies are obligated to ensure that their workspaces comply with all COVID-19 regulations,” says

Castiho. This trend will boost the demand for Grade A and Grade A+ office buildings. While there is a 30% vacancy rate at present, the vacant space is expected to be snapped up as new developments will take three to four years to bring to market. “This might have a positive effect on office rents, which we project to increase over the next 24 to 36 months,” says Castiho. The residential market in Maputo is mirroring the growth in the commercial sector, with an increase in the number, quality and location of buildings in order to attract multinational clients. Some investors have been benefiting from lower prices due to the higher vacancy rates, and therefore they have an increased appetite for the lease segment market in the near future. In terms of new opportunities, Castiho points to the burgeoning tech industry, where Broll Mozambique has been assisting with funding for start-up companies, many of which have been successful. Castiho attributes this to a demand for ICT skills as the tech industry itself continues to expand rapidly. While many multinationals are back in the office in Uganda, they are still mainly operating in shifts so as to reduce the number of people in-office due to COVID-19 protocols, says Moses Lutalo, MD of Broll Uganda. “In the short to medium term, this is going to impact space requirements for some of our clients considering space reduction. However, in the long term, I do believe that the space requirements are likely to go up due to the increased need for social distancing. We are currently operating on a 10 m 2 per person model, but due to COVID-19 this is likely to go up significantly.” On the investor front, the trend is for diversified portfolios that include commercial, residential and industrial. Retail and hospitality, on the other hand, continues to remain elusive to investment. In terms of occupiers, safety, efficiency and sustainability are key decision drivers for all locations. “We are also witnessing an increase in owner-occupier developments, especially on the part of government departments,” says Lutalo. In terms of emerging niche asset classes, these range from data centres to healthcare and even coldrooms, all segments that are gaining traction. In Kenya, most multinationals are still operating from home, with a slow trickle back to the office. “As a result, the demand for office uptake has reduced drastically. At the moment there are few enquiries, and notably these are for smaller spaces,” says Meshack Kimatu, Finance Manager at Broll Kenya. To counter this trend, investors are issuing

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While interest in student housing has been fuelled by a growing student population, actual investment has been delayed in this segment as education has not yet returned to a ‘new normal’. Lastly, Sekyere says the serviced office sector is gaining momentum as occupiers opt for more flexible options that are cost-effective and also promote the well-being of their workers. “The longer-term trends in the Nigerian property market are currently unclear and difficult to project,” says Bolaji Edu, CEO of Broll Nigeria. Lagos, in particular, has a distinct multinational and domestic market segment, with little overlap between the two. The occupancy rate of Grade A office buildings is currently under 40%, as workers continue to work from home or opt for a hybrid model. “This is leading to a fairly downbeat short-to-medium forecast,” says Edu, with the uptake of Grade A office space in H1 2021 at its lowest level since Broll started tracking the market. “We are not projecting a significant increase in H2 2021. However, with the rollout of vaccinations and the introduction of vaccine passports, business travel should bounce back and boost commercial activity. That being said, it is unlikely that multinationals with Nigerian operations will reverse the space-consolidation plans they have already started to implement.” Any market change or disruption is likely to see the emergence of new trends, and Nigeria is no different. “Affordable and social housing remain a prominent topic of discussion. Other sectors seeing a rise in institutional activity and with long-term growth prospects include student housing, data centres and healthcare and medical offices,” says Edu. 

flexible leases and improved commercial terms so as to attract tenants. “On the other hand, developers may opt for buildings with flexible floor plates so as to tap into the new requirement of occupiers for smaller spaces. At the same time, we have seen some emerging trends like affordable housing, which is being championed by the government as one of its major social development agendas, as well as the emergence of data centres,” says Kimatu. Ghana has seen a similar shift in the commercial space due to COVID-19. Multinationals are gradually returning to the office, albeit on a hybrid system, while back-office staff in particular are still being encouraged to work from home. “This trend is likely to have a negative impact on space uptake in the near-term,” says Tony Sekyere, CEO of Broll Ghana. Market intel reveals that the average space uptake has dropped from a pre COVID-19 level of 200 m 2 to 350 m 2 per transaction to a post COVID-19 level of 100 m 2 to 200 m 2 . Tenant subletting requests are, however, diminishing due to increased business confidence following a robust vaccination rollout. “In general, we have noted that the global financial crisis has eased investor appetite for real estate investment. This is likely to affect the development pipeline, with most investors deferring speculative projects,” says Sekyere. Rentals of Grade A space have been on a downward slide lately, with landlords offering incentives such as extended rent-free periods and flexible payment terms to sustain occupier interest. The key emerging sector in the Ghanaian property market is data centres, driven mainly by the digitalisation policy of the government. “We anticipate that this sector will continue to grow rapidly,” says Sekyere.

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