Construction World March 2018

The business magazine for the construction industry

FEBRUARY 2017 MA CH 2018

WORLD

CR O WN B I R O

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

Scania is the PERFECT PARTNER for success

Unlocking AFRICAN INFRASTRUCTURE development

GETTING GREENER with precast

LSFB shows its METAL IN ROOFING

Our network, your opportunity

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CONTENTS

04 Our future is now CESA says change can only be effected with hard work. 08 Whereto for building contractors in 2018? MBA North shares insights as to the current and future building conditions.

18 Getting greener with precast In the sustainable quest, precast is more widely used in housing. 22 Unlocking African infrastructure development AECOM maintains that despite challenges, the African continent has huge potential. 18 A house for all seasons House Memel illustrates how timber frame construction can be used in a difficult terrain. 28 Silo rehab at Caledon Breweries SAB Miller’s Breweries in Caledon were repaired with a.b.e.’s help. 34 Industrial-chic Architects Of Justice has created a geometrically striking office building in industrial. 38 Building and construction trends from a QS perspective in 2018 The challenges for Quantity Surveyors in this year and in the future. 47 Bridge over troubled water The Tugela Pedestrian Bridge is a steel bridge that is of huge benefit to the community. 50 bauma CONEXPO AFRICA Some of the equipment and product suppliers that will be present at this expo.

14 Redeveloping landmark Barlow Park Atterbury and Rainbow Capital will spend R3-billion on this Campus. 16 Ugandan oil and gas industrial park SMEC is developing the Master Plan for a development in western Uganda. 17 Sub-Saharan Africa hybrid power Between now and 2025 installations in this region will generate thousands of MW.

ON THE COVER

REGULARS

Ditshimega Projects and Training’s success in a difficult economic climate has been nothing less than astounding. When it was established in 2013 it had a turnover of R1,2-million. This has exploded to R250-million in 2017. Wilhelm du Plessis asked the MD, Sakkie Ranta about the company’s business model, its unique selling point and its preference for Scania vehicles in its quest to offer turnkey solutions to customers for the building of trusting relationships. Read the article on pages 20 and 21.

04 14 17 22

Marketplace

Property

Environment & Sustainability

Projects & Contracts

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COMMENT

At its very core mobility is about how people move between places, jobs and socially. For South Africa with its complex social, economic and political problems, good mobility has been the reserve of a few as urban planning was based on a political system of separation. Sadly, even today, this practice continues and is limiting the choices of how people move between places, jobs and in the social sphere. The result is that those who are poor and live far from work, stay poor. is the 12 th most road coverage in the world – this is by no means a reflection on the country’s mobility. The 3 rd Mobility Roundtable was preceded by two events hosted in Durban and Johannesburg last year. The 1 st Future Mobility Roundtable in Durban envisaged that the MCA would be a platform for the research, testing and deployment of future Smart Mobility Solutions including electric, connected and autonomous vehicle technology. The 2 nd Future Mobility Roundtable in Sandton, brought together transport and mobility experts who shared insights on the future of mobility on the continent. The most recent roundtable focused on how it is vital to first have legislation in place before mobility can truly be tackled. Victor Radebe, Executive Director and MCA Co-founder said that, “As a tech-savvy nation, the only way we can proactively manage the mobility disruptive forces is to first develop a conducive legislative and policy environment; and government’s role cannot be overemphasised.” Wilhelm du Plessis Editor

Highlights in this issue

T he opposite is also true: as many South Africans have climbed the economic ladder, there has been a significant increase in congestion and crashes, while traffic accounts for 36% of all pollution. However, this seems to be declining slowly: whereas the average family usually owned two cars, some are choosing to have only one car now. Up to 20% of millennials choose to have no car. This shows that the nature of mobility is changing. Alleviating poverty and pollution are among the reasons why the Mobility Centre for Africa (MCA) was created. It recently hosted its 3 rd Future Mobility Roundtable in Cape Town. The discussion was the third in a series of events bringing together government, industry and academia to collaborate in a drive to prepare South Africa and the continent at large for the rapidly changing world of transportation. Global ride sharing company, Uber, was MCA’s official partner for the 3 rd Future Mobility Roundtable. The thinking behind Uber, in some way or another, can offer a solution to Africa’s mobility problem. The aim of the MCA is to start a conversation as to how access to transport can help get people out of poverty. Even though South Africa has some 750 000 km of roadways – which

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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 PUBLISHED MONTHLY BY Crown Publications cc P O Box 140 BEDFORDVIEW, 2008 Tel: 27 11-622-4770 • Fax: 27 11-615-6108

TOTAL CIRCULATION: (Fourth Quarter ’17) 5 024

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

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MARKETPLACE

OUR FUTURE IS NOW Consulting Engineers South Africa’s (CESA) newly appointed President, Neresh Pather, presented his presidential message and theme for the year at a function held in Johannesburg recently. Pather’s focus for the year will be on Effective Ethical Leadership with the theme of ‘Our Future is Now!’ He stated that change can be effected if we believe in it and work hard enough to achieve it and that with great leadership we can succeed.

P ather began his presentation by stating, “The world of the future can only be changed and facilitated through the leadership of today embracing the true

purpose of service to humanity”. He said that having had a smooth ANC leadership race concluded during December 2017 he believes that we are on a journey to restoring confidence in our country and its leaders and this includes the recent successful trip by our leaders to the World Economic Forum in Davos. Pather believes that leadership starts with Values and Purpose that underpin Governance and Process. During the year Pather will be focusing on the following key objectives: Effective Ethical Leadership most importantly creating role models that inspire our future generations; Transformation efforts in changing people’s hearts and minds; Embracing the 4 th industrial revolution, the new world of digitisation and new ways of doing things through innovation and data informed techniques; Industry integration and working collaboratively on common issues that benefit industry and society; and Working with industry clients in addressing Corruption, Governance, and Client leadership. Planned programmes of employment creation, skills development and encouraging trade relations with our neighbours, developed and emerging countries should be accelerated. Within South Africa he believes that we need to encourage the black empowerment principle not as a means of compliance but to truly develop African industrialists to grow our economy. As part of our transformation drive we need to embrace both youth and gender equality so that we ensure the conversation on our future includes all participants. This is the only way we will be able to design a future that is relevant and inclusive. Pather commented that, “CESA hopes to play the role of a facilitator of good values and good business principles that enables transformation not for any other reason but because it is the right thing to do”. He explained that the industry has changed since democracy in that we now have 27% of the 21 900 engineering professionals from previously

Chris Campbell, CESA CEO with Neresh Pather, President of CESA.

disadvantaged communities, remembering that for many years these technical professions where never careers that were known, encouraged or spoken about in our society. He goes on to say, “It is at all times important to understand the background behind this low statistic and not assume that it is something that can be quickly manipulated to make it appear to match the demographics of our country. We all need to drive creating as many engineering professionals and entrepreneurs from previously disadvantaged backgrounds as possible and keep at it. We must challenge ourselves to constantly question ‘what does success look like and what is acceptable’ – this way we will push ourselves to greater heights to allow SA to prosper and not only focus on compliance”. He stated that the rollout of the Standard for Infrastructure Procurement and Delivery Management (SIPDM) across all spheres in Government was a positive intervention with CESA collaborating with National Treasury in the roll out and training for this procurement system. CESA is however, concerned that since the announcement and implementation of this procurement system, across government there is no Infrastructure Directorate at National Treasury that is taking ownership and accountability for the implementation and monitoring of compliance with this Standard. Pather stated, “It is a fallacy that increased spending on infrastructure will address our current industry issues. Spending correctly and in the correct areas that will afford us these benefits is more important”. The SIPDM programme was designed to migrate the emphasis away from administration and to focus on governance and leadership to ensure that infrastructure in government is driven with the correct knowledge and competence. CESA is proud to be a partner to National Treasury through an MOU that allows access

CESA’s Key Industry Initiatives – Shaping the Industry CESA together with its member companies, stakeholders and clients is hoping to shape the industry positively with the following key initiatives during the coming year: • Development of an industry-related Bursary programme – CESA is collaborating with SAICA to replicate the Thuthuka Bursary Programme for engineers. • Promotion of the Business of Consulting Engineering (BCE) programme – a successful Management Development Programme targeting engineering practitioners in the Consulting Engineering Environment. • Administration of Quality standards - CESA Membership requires that company’s either be formally accredited with an ISO 9001 quality certification or adopt at least a basic format of a Quality Standard. • Accrediting training programmes that are recognised for CPD purposes for all industry related professions allowing companies to optimise spending on training using in-house developed training programmes for a broader spectrum of their professional staff. • Continued collaboration with other Voluntary Associations such as SAICE, SAIEE and SAIMechE. • Issuing of a Practice Note on Consulting Engineering Fees to assist both Consultant and Client to understand the complexity of fee calculations and why various considerations are important for a sustainable industry. Pather reiterated that CESA is hopeful that the work done to date in the roll out of SIPDM and the partnership with National Treasury is further accelerated in order to create a paradigm shift for infrastructure in South Africa. CESA represents close to 540-member firms employing over 21 000 people. Through its focus on quality and the credibility it has created with various client organisations it represents the hallmark of competence, integrity, and quality in the consulting engineering industry.

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Becoming a global Composites Centre of Excellence

TLT MechCaL was established in 2002 to design and manufacture industrial fans. The company has developed proprietary software that allows for high efficiency designs to address the much- needed green economy to reduce CO 2 emissions to the atmosphere through using less energy while providing the same performance. At their manufacturing facilities in Pretoria, TLT MechCaL focuses on developing specialised fans using advanced design tools and materials. Every fan is designed for a specific application tailored to suit the needs of each client by matching the required performance with optimised efficiency. TLT MechCaL has been awarded the prestigious Technology Top 100 award six times and has been a runner up four times. They have also won the Enabling Award from Frost and Sullivan. All of this success was garnered from leveraging advances in technology and use of advanced composite materials to enable savings for their clients. In 2016, TLT MechCaL was formally incorporated into the TLT group by German based firm, TLT-Turbo. “Becoming the global competency centre in composites positions us to expand our leadership in the industry both in Africa and worldwide,” said Erasmus. “We will accelerate the execution of POWERCHINA and TLT-Turbo’s strategic vision by further leveraging the innovations in using composites in state-of-the-art ventilation related solutions.”  TLT MechCaL, who have POWERCHINA owned German company TLT-Turbo as their majority shareholder, have been researching and implementing the use of various Carbon Fibre Reinforced Plastics (CFRP) – generally referred to as composite materials – in their fan designs for over a decade. The use of these materials and knowledge of aerodynamic principles with the majority of the TLT MechCaL team having their background in the aircraft industry, have allowed TLT MechCaL to design and manufacture fans with significant improvements in performance and increased in efficiency. The result is lower energy consumption, lower mean time between failures, and less demanding maintenance. This specialised expertise in the use of composites is becoming invaluable in the innovation and design of new and improved fans for the mining, power and industrial sectors around the world. POWERCHINA had three centres of excellence around the world in the engineering sector and TLT MechCaL became the fourth. According to TLT MechCaL’s Managing Director, Luther Erasmus, there has been a lot of interest from POWERCHINA in the composite products that TLT MechCaL is able to produce and that POWERCHINA envisions possible expansion of the use of composites beyond ventilation into vapor recompression, evaporation, desalination and other solutions as well. Historically known for their highly innovative use of composites in manufacturing mining and industrial ventilation fans, TLT MechCaL has been named as the Composites Centre of Excellence for the global TLT brand by TLT-Turbo GmbH – a move that has the potential to put South Africa’s composites expertise on the world map by creating jobs and further developing skills in this field.

to CESA Members across the country to ensure that all state organisations have the required capacity and skills to be compliant with SIPDM but also to ensure that non- compliance is addressed in a positive manner for future relations. With reference to the industry regulatory body, the Engineering Council of South Africa (ECSA), Pather stated that the current impasse between ECSA and the Voluntary Associations is unhealthy for the industry. He commented that the notion that either ECSA or the VAs can serve the industry in isolation is ludicrous and needs urgent attention from the various Ministries in government, in particular the Department of Public Works. In regard to the new Construction Sector Scorecard Pather says that setting transformation goals and objectives for the industry is the right thing to do and should not be viewed simply as a compliance issue. CESA through its membership seeks to set the correct value system within the industry for all companies to abide by. 

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MARKETPLACE

CRITICAL ISSUES from final CONSTRUCTION SECTOR CODE By Deon Oberholzer, CEO of Gestalt Growth Strategies The final Construction Sector Code was finally gazetted on December 2017 – notably just two weeks before the builder industry’s holiday ... but at least better than the repeal of the old one just days before the financial year end of most companies in 2016.

I n reviewing the final document against the draft, CEO of Gestalt Growth Strategies, I found that most of it was left unchanged, but there were a few earthquakes set to shake some well-constructed BEE strategies to their foundations. Some of the last-minute changes in the newly-gazetted final Construction Sector Code could have a significant impact on the industry, and the look and feel of those changes bears the hallmarks of one or more highly influential lobby groups or agents with a radical agenda pushing amendment through without proper consultation. The term ‘BEP’ refers to Built Environment Professionals such as consulting engineers, architects and other professional service providers in the construction industry, and the news is dire for multi- national BEPs. They apparently should please just leave the country, as it appears internationally-owned consulting firms will no longer be considered for government contracts in South Africa. If you do not want to exit completely, please sell the business to your black executives. If they cannot afford it, just close the door on your way out, please. Sanral published its draft procurement policies late last year, noting that they will only do business with companies that have 51% BEE ownership. The Amended Construction Sector Codes (CSC) sets out a new and highly controversial disqualifier for BEPs that only half of your BEE shareholding would count if the business is not more than 50% owned by its own South African executives. So, by combining these two, an internationally owned BEP is automatically disqualified. I believe there will be some pushback on this, but it might not be particularly vocal or legal. The industry works predominantly on tenders for big projects and we all know that if you make too much noise, your tender submission may just fall off the back of the truck on the way to the tender committee. Procurement First the definition: A ‘black designated group supplier’ is defined as “a company that is at least 51% owned by black people that are un- employed, youth, persons with disabilities, living in rural areas and/or military veterans”. Because many BEPs subcontract work to other BEP specialists, I somehow doubt that the incidence of designated BEPs are ten times as high as the incidence of designated suppliers of anything else, but there it is: BEPs have to source 20% of all their procurement from this tiny sector of the economy, please. The equivalent for everyone else in terms of the BEE Codes and the Sector Codes is only 2%. Oh, and foreign employees are no longer recognised as employees, even if they are in a formal employment relationship. Anyone up for another Mining Charter extravaganza? What follows are some points I noted in my review. Multinational BEP Ownership

Their salaries are now part of “procurement”. This is a really weird last minute addition that happens to be entirely counterproductive. If you do have any foreigners working for you, get them to become freelance consultants, invoice you and you are now dealing with level 4 EMEs with 100% procurement recognition, a nice reduced skills development target and less pressure on management trans- formation. For the love of me, I cannot figure out how this promotes any real transformation. The Construction Sector Council Now with teeth. One of the highlights in the CSC is that the role of the Construction Sector Council (CSCC) has been strengthened to an executive authority with the mandate to monitor transformation in the sector. With the President Cyril Ramaphosa having built his elec- tion platform on a commitment to root out government corruption and state capture, we can expect an equally hard push to get rid of in corruption and fraud in business. And for that, the BBEE Commis- sioner and the CSCC will work together to take aim at BEE fronting in the construction sector. Construction companies in the sector with a February year end had but a few weeks to get their house in order or risk being out in the wilderness for a year. Companies should remember that the measurement periods may now only be the actual financial year of the entity. So if you miss this year, the next window to do something is a year away. Steer clear of any form of fronting, though. As mentioned, the push against corruption will surely – after the widespread and ongo- ing reporting of the erring of companies such as KPMG, McKinsey, SAP and others – include businesses of all sizes. The new govern- ment, whoever it may include, will be obliged to carry out a visible “witch hunt” among those who feel that they can flout the rules because others do. 

The new government, whoever it may include, will be obliged to carry out a visible 'witch hunt' among those who feel that they can flout the rules because others do.

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MARKETPLACE

Whereto for building CONTRACTORS IN 2018? The South African Government may have been criticised for several years for overestimating how the County’s Economy would perform. In contrast, the last two years have been a downward roller-coaster. This has been a challenge for all our readers. Here the MBA North provides an overview.

quarter of 2017, down from a revised 2,8% in the second, agriculture 44,2%, mining 6,6% and manufacturing 4,3% were the main drivers of the expansion, while there was a contraction in general government services resulting from low employment numbers in the public sector … construction -1,1%, electricity -5,5%” (others including government relatively flat).” While for five months the JSE and recently the Rand valuation have shown a significant improvement of overall sentiment, it is not reflecting in building yet. The Bureau of Economic Research (BER) Building Confidence Surveys remains negatively unsettled: After reaching its highest level in more than a year of 43 points in 2017Q1, the FNB/BER Building Confidence Index fell sharply to 32 in 2017Q2. Quarter 3 of 2017 The FNB/BER Building Confidence Index rose to 35 index points in 2017Q3, from 32 in 2017Q2. However, despite the slight increase in the overall confidence index, the underlying indicators (particularly activity) suggest that growth in the building sector will likely continue to weaken. Quarter 4 of 2017 The FNB/BER Building Confidence Index fell to 31 in 2017Q4, from 35 in 2017Q3. This marks the lowest confidence since 2012Q3. Despite the fall in confidence, on balance, activity was broadly unchanged compared to 2017Q3, albeit still weak.” Ongoing negative building activity With Building Activity remaining weak, to keep traction companies are not just going to have to focus on their strengths, but on aggressive marketing and networking, perhaps even lobbying politically for more infrastructure expenditure and a fairer operational environment, to find and stay in business in 2018. In this regard Mohau Mphomela the CEO of MBA Gauteng noted two additional points: “Prompt payment regulations are a

H owever there are some indications to support the Finance Minister’s January statement that he is hopeful of a 2% improvement in 2018. This would no doubt help the Building Industry and likely Small to Medium-sized Builders would feel the benefit first. Nevertheless one should not get too excited yet, it being just months since the economy was negative and it is not in a certain trend yet. 2018 is likely to be bumpy and require caution In contrast to the improved situation in the rest of the World, the Reserve Bank November Statement reflected a relatively dire situation in South Africa: “The forecast for GDP growth generated by the QPM has been revised up marginally to 0,7% for 2017, but revised down to 1,2% … for 2018 … The construction sector, which recorded negative growth in the second quarter, remains weak …This is indicative of the poor outlook for infrastructure expenditure.” The news that followed from Statistics South Africa compounded concerns: “The South African economy grew by 2% in the third

desperate requirement for the industry especially with the negative growth experienced in the building industry. (The prompt payment regulations have not been promulgated, but have been delayed since early 2016.) The ‘pay when paid principle’ is a problem because principal contractors, when they are not paid, in turn don’t pay suppliers of material and equipment as well as subcontractors. JBCC contracts that offer guidelines for payment are constantly being amended, resulting in subcontractors being on the back foot (unable to pay staff, creditors and meet daily operational requirements). Another concern is the low margins that contractors work with. In PwC’s report (2017) they put margins at 2% but contractors have even lower margins if anything disturbs the progress of their work, at times from factors beyond their control such as weather, strikes, etc. This results in contractors accepting projects just to remain in business.” Hopefully there will be no further major shocks such as those that shook South Africa recently and the glimmer of light at the end of the tunnel will strengthen and become a stronger and sustained turnaround. 

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MARKETPLACE

Monash South Africa to launch engineering offering Monash South Africa (MSA) is proud to announce that they are extending their academic offering in 2018 by offering Engineering within their expanded Faculty of Business, Engineering and Technology.

opportunities may expand to include registration as a professional engineer, and progression toward the Government Certificate of Competency and research,” concludes Brijmohan. At MSA there are a range of undergraduate and postgraduate study options on offer, including degrees and postgraduate diplomas. Academic study is reinforced with personal attention, robust research and strong links with industry. The campus provides internationally relevant degrees through innovative teaching and learning methods, striving to be constantly adaptable to the needs of their students in terms of employability, internationality and experience.  About Monash South Africa Monash South Africa is a registered private higher education institution in South Africa and our programmes are accredited by the South African Council of Higher Education, and registered with SAQA on the Higher Education National Qualifications Framework as registered by the Department of Higher Education and Training.

MSA is the first Private Higher Education institution to offer a Bachelor of Engineering (BEng) programme that is reviewed by the Engineering Council of South Africa (ECSA). The BEng in Electrical and Electronic Engineering programme is accredited by the CHE and endorsed by ECSA. ECSA is the only signatory in Africa to the Washington accord, to which this degree is aligned. The accord allows for international recognition of Engineering qualifications within the agreements. “The shortage of skilled engineers has a widespread effect on South Africa and the African continent at large, affecting the country’s functioning in the globalised business environment and economy. Upon graduating with this degree, your skills will be in high demand, making you sought after by potential employers,” explains Yashin Brijmohan, Executive Dean, MSA. The first intake into the greater engineering faculty will be in February 2018 and all classes forming the This prestigious biennial award, founded by AfriSam and the South African Institute of Architects (SAIA), recognise the contributions that bring sustainable innovation to human living environments through an integrated approach to communities, planning, design, architec- ture, building practice, natural systems and technology. “This award recognises the importance of ‘green’ building in a palpable way while enabling us to highlight and commend excellence shaping our communities for livable sustainability,” says Maryke Cronje, SAIA President and convenor for the 2017/18 Award. As co-founder and sponsor of the Award, leading construction materials producer, AfriSam, continues its partnership with SAIA in bestowing the Award. Apart from recognising excellence in Sustainable Architecture and Research

Bachelor of Engineering in Electrical and Electronic Engineering programme will be conducted on campus, at MSA in Ruimsig. Laboratory work will be conducted at state- of-the-art laboratories off campus. This will be a full-time programme of a minimum of four years in the mainstream programme and a minimum of five years in the extended programme, giving graduates an NQF Level 8 qualification. “The programme prepares graduates to assume engineering positions within private consultation firms and development laboratories, large and small private enterprises involved with the design, development, production, and marketing of electronic and electrical systems, subsystems, and components of products. Opportunities may also be available in government and non-profit organisations. Private consulting positions or creating opportunities in an entrepreneurial role are further options. Graduates may also choose to pursue a career in academia, either as a discipline-specific lecturer or researcher. Through further study and experience, your in Sustainability, the Award also invites entries that make innovative contributions in the fields of Sustainable Products and Technology, and Sustainable Social Programmes. According to Richard Tomes, Sales and Marketing Executive at AfriSam, the AfriSam-SAIA Award for Sustainable Architecture + Innovation is a natural extension of the AfriSam brand and reflects the company’s commitment to sustaining the environment through responsible manufacturing processes. “At AfriSam we believe in creating concrete possibilities. This extends beyond just the products that we manufacture. “We believe that through responsible and sustainable business practices today, we are creating a future of possibilities for our children and their children,’ he says. Entries for the 2017/18 AfriSam-SAIA Award for Sustainable Architecture + Innovation close at 00:00 on March 24 2018

AfriSam-SAIA Award: Last call for entries Practitioners passionate about contributing to a better future for all are invited to enter the 2017/18 AfriSam-SAIA Award for Sustainable Architecture + Innovation. Entries for the 2017/18 AfriSam-SAIA Award for Sustainable Architecture + Innovation close at 24:00 on 24 March 2018.

An entry in the previous installment of the awards: the WWF building in Braamfontein.

and will be accepted in four categories: • Sustainable Architecture • Research in Sustainability • Sustainable Products and Technology, • Sustainable Social Programmes Project entries should demonstrate sound sustainable practices, that bear the hallmarks of great architectural or social design and innovative thinking in the field of

sustainability, to improve our world. The adjudicators for the 2017/18 AfriSam-SAIA Award for Sustainable

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Kenyan merger Turner & Townsend recently announced that its Kenya business is to merge with Nairobi-based project management firmMentor Management Limited (MML). Turner & Townsend has acquired a majority stake in MML from leading growth markets investor – Actis. The transaction is subject to regulatory approval.

team of over 40 experts, delivering a range of services including: advisory, programme management, project management and cost management. Turner & Townsend was established in the UK in 1946, and has 104 offices in 44 countries with over 5 000 people. Turner & Townsend has operated within Africa for over 30 years and has nine offices. Turner & Townsend’s most recent appointment in Kenya has been providing cost management services for the major mixed- use project – RiverRun Estates Ruiru. MML has been operating from Nairobi since 1987. Well respected in the commercial and residential sectors, MML has delivered a number of prestigious projects in Kenya including: Garden City Nairobi – one of East Africa’s largest shopping malls; an 11 000 m 2 cargo handling facility for Swissport and a new chancery for the Australian High Commission. 

The new entity, MML Turner & Townsend, will operate across the real estate, infrastructure and natural resource industries. The merger comes as global investment is fueling Kenya’s diverse economy. Construction activity, most notably in infrastructure, is being driven by institutional and private investment from overseas. Major projects have been helping to grow inbound investments in surrounding construction developments, including: the Northern Corridor Transport Improvement Project (NCTIP); the Lamu Port and Lamu Southern Sudan-Ethiopian Transport Corridor (LAPSSET); Lokichar to Lamu pipeline corridor; the new Mombasa-Nairobi Expressway and the Mombasa-Nairobi Standard Gauge Railway Project. LAPSSET in particular will expand port access to Kenya, boost rail construction and include a pipeline for recently discovered oil in the country. Vincent Clancy, Turner & Townsend Chairman and CEO, commented: “The merger of our Kenya operation with MML, sees MML Turner & Townsend become the largest independent project and programme management company in East Africa. This is the next step in our Africa expan- sion plan as we continue to grow across the continent.” MML Managing Director John Rogers said: “Joining Turner & Townsend is a significant step for our employees and

clients. Turner & Townsend’s global expertise combined with MML’s local knowledge and reputation, will deliver a unique proposition to clients.” Michael Turner, Head of Actis’s Nairobi office commented: “East Africa is a key market for Actis’ real estate team, with strong macro and real estate fundamentals. The interest received from strategic investors reflects these fundamentals and MML’s market leading position, we look forward to a continued business relationship with MML Turner & Townsend as we continue to build our reputation as the most experienced sub-Saharan African private equity real estate investor.” Turner & Townsend’s existing team will join MML’s Nairobi operation, as a combined

From left: Rewel Kariuki – Director; John Rogers – Managing Director PM; Mark Haselau – Managing Director RoA; Sam Njau – CFO; Daimon Keith – Managing Director CM and Robert Gichohi – Director Projects.

Architecture + Innovation are Maryke Cronje (architect and President of the SAIA), Dr Sechaba Maape (sustainability architecture academic and architect), Philippa Tumubweinee (academic and

co-founder of IZUBA INafrica Architects), Niraksha Singh (AfriSam Raw Materials and Sustainability Manager), Emmanuel Nkambule (academic with particular interest in the social environment) and

Richard Stretton (founder of architecture and furniture design studio Koop Design). Stretton received the 2010 and 2014 Afrisam-SAIA Award for Sustainable Architecture and a 2014 Merit Award. 

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PROPERTY

Redeveloping landmark BARLOW PARK In a groundbreaking real estate transaction, Barloworld, Atterbury and African Rainbow Capital have partnered as co-investors in the redevelopment of the prime Barlow Park Campus, situated at 180 Katherine Street, Sandton.

and the community at large”, says Johan van der Merwe, Co-Chief Executive Officer of African Rainbow Capital. This trailblazing development will optimise the full potential of its unique site and coveted location in line with the very latest in world-class modern, efficient and quality multiuse developments. The property enjoys a prime site, nestled between the M1 highway and the main road of Katherine Street. It has excellent access and superb visibility on both major arterials. This also positions it ideally to benefit Sandton’s new road upgrades – for private and public transport – focused directly around the property. Subject to zoning, the development could include around 55 000 m 2 of offices, over 780 residential units, a roughly 10 000 m 2 community retail centre, as well as a hotel and a gym. It is being meticulously planned so each property use will enjoy peak functionality, access and visibility, with painstaking attention to detail ensuring it is designed for unparalleled quality. The development will be phased, and will roll out in response to tenant and market demand. The entire project should take about six to eight years to develop, after it obtains zoning approval. The Barlow Park development project is ideally positioned for a positive impact on its immediate community, being located at a key connection point with the nearby Alexandra township to create local economic and job opportunities. 

T he joint venture property investment and development deal was signed recently. The next step is the rezoning of the property, which is expected to take at least a year. The initial property transaction involves each party holding one-third of the landmark site currently housing Barloworld’s corporate offices. The investment value will eventually climb to well over R3-billion as the total redevelopment of this sprawling corporate park is rolled out into a 130 000 m 2 vibrant multi-billion-Rand mixed-use precinct. “The redevelopment of Barlow Park is part of our strategic focus to maximise the use of and unlock value in all our assets. This will not only contribute to the achievement of our bold ambition, but will be a legacy that will deliver value over the long term. The relocation of the Barloworld head office from Barlow Park is a symbolic major shift in our ethos and perspective of managing for value. Our Equipment and Logistics head offices will also relocate closer to their operations. This development is one of the pivotal steps in setting the tone for our growth going forward,” says Dominic Sewela, Chief Executive Officer of Barloworld Limited. Leading South Africa property investor and developer Atterbury will develop the

project for the joint venture and lead all aspects of the development. Atterbury will also lease the development and are the appointed asset managers of the completed property. Louis van der Watt, Atterbury CEO, says: “The opportunity to develop this mixed-use commercial precinct at the gateway to South Africa’s financial capital of Sandton Central is hugely exciting. We look forward to creating a new chapter for this exceptional legacy asset by unleashing its extraordinary potential, which was first identified by the founding family of Barloworld. We are confident that this iconic South African company will continue to benefit richly from its foresight and new joint venture. We are also incredibly proud to make this unmatched investment with esteemed South African business African Rainbow Capital.” Two of African Rainbow Capital’s founding principles are alignment and partnering with the best. With this project we are proud to partner with esteemed, experienced teams from Barloworld and Atterbury on this exciting, ground-breaking opportunity. It subscribes to our mandate of investing in property opportunities where value can be unlocked for all stakeholders,

Louis van der Watt, Atterbury CEO. Aerial view of Barlow Park – Sandton.

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Retail to adapt to WATER CRISIS Consumers are not the only ones who have to tighten taps in Cape Town. As South Africa’s ‘Mother City’ approaches dreaded Day Zero which has been estimated to occur in May 2018, retailers and shopping centres too, have to rethink their strategies to ensure survival.

not be in time for the current projected D-day, it will ensure future water security,” added Stephan. Stephan further added that Growthpoint was a founding member of the Green Building Council of South Africa (GBCSA) and one of the industry leaders in implementing sustainable and resource-saving technologies, ranging from solar energy to recycling. “We have, over the past number of years, implemented a number of water- saving initiatives across our portfolio such as rain water harvesting, waterless urinals, replacing water-thirsty plants with indigenous plants and hard landscaping, abandoning irrigation all together-even from boreholes. “Our shopping centres have to trade – not only because thousands of people depend on the income and salaries but also as the public will continue to need daily access to stores,” he said. Canal Walk, Cape Gate and Somerset Mall (HYPROP Investments Limited) Camilla Lor, Marketing Executive for Canal Walk said that Hyprop Investments Limited was an environmentally active and socially responsible commercial entity. “HYPROP is therefore committed to upholding and enforcing water restrictions, policy and regulations in support of managing its role as it pertains to the drought in the Western Cape,” she said. She added that HYPROP Investments Limited has instituted stringent measures at all its shopping centres in the affected areas. “This includes limiting the use of water deployed inside the centres and external amenities. To remain top of mind and to reinforce the change in attitude that is required from everyone – shoppers, retailers, visitors, staff etc – all centres have engaged in regular communications to tenants, including suggestions for easily implementable water saving tactics, as well as highlighting the successes the centres achieve on an ongoing basis,” said Lor. Tyger Valley Centre (Mowana Properties) Nozipho Khumalo, the National Marketing Manager for Mowana Properties said that they had been working tirelessly on various initiatives, in a bid to ensure that continuity of business is achieved, should day zero be reached. “We have identified that all parties need to work together to ensure that we save the precious resource we currently have. We have been working very closely with our largest consumers of water within the centre which are air conditioning, tenant usage and ablutions to aim to drive and exceed the savings on consumption demanded by council. We have identified and met with the large water users within the mall including anchor tenants and have encouraged water saving throughout the mall. Various of the tenants have implemented their own initiatives such as dry water washing at the hair-dressers and the usage of disposable towels. In a bid to save water, we have investigated alternative water sources, such as borehole water in preparation for Day Zero. Day Zero affects all parties and is not the sole responsibility of the landlord. A water expert has just been appointed to assist us with scientific water saving methods and we are also encouraging tenants to play their part and to introduce initiatives of their own,” she said. Amanda Stops, Chief Executive Officer for the SACSC, said that the above provided an indication of what just a few of the role players in the shopping centre industry have implemented to deal with the current water situation in Cape Town. “From the many initiatives detailed, one can see that this is a priority for the shopping centre industry, a situation that has been taken very seriously. The industry is committed to collaborating with all stakeholders and finding solutions in order to continue to provide safe, comfortable shopping environments,” she said. 

C ape Town is now regarded as the first major city in the world to run out of water. Current dam levels in the city are currently around 26,5%, stabilised temporarily by the 10 billion litres which had been made available to Cape Town by the Groenland Water Users' Association in Grabouw recently. Jeremy Naidoo, Water Production Scientist said that parts of the Western Cape lie in a winter rainfall region-meaning that most of the rain falls during South Africa’s winter months (June-August). “In the event that rain does not fall, the Western Cape region will likely be declared a disaster area. Day Zero has already been predicted by the relevant authorities to occur as early as May 2018 in the event that population of the Western Cape does not adhere to the strict water restrictions,” he said. According to Naidoo, the two main solutions to deal with the crisis are Groundwater Abstraction and Water Saving Technologies. “In my opinion, the most attention should be given to Groundwater Abstraction and Water Saving Technologies as a quick intervention to deal with the current disaster. Groundwater abstraction should be increased in a sustainable manner to prevent depletion and failure of groundwater resources. Water saving technologies need to be implemented to increase the efficiency of water use, especially in the case of commercial agriculture,” he said. V&A Waterfront (Growthpoint Properties) Stephan le Roux, the director of Growthpoint Properties commented on the various measures they (Growthpoint Properties) have undertaken to ensure that the V&A Waterfront remains steadfast during this challenging time. The V&A Waterfront is regarded as the premier tourist destination in South Africa with tremendous international tourist exposure. “It is imperative that the V&A continues to operate at an acceptable level. Not only does the precinct have the highest concentration of hotels and restaurants but it is the ‘showcase’ of Cape Town. Over and above the extensive water-saving initiatives already deployed, the V&A will be constructing their own dedicated desalination plant. Whilst this will

Jeremy Naidoo, Water Production Scientist.

Amanda Stops, Chief Executive Officer for the SACSC.

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PROPERTY

As a result of the discovery of oil in the region, and the need to maximise value from the resource, the Government of Uganda has allocated approximately 3 000 ha of land for the project, making it one of the largest industrial parks in the world. The Industrial Park is intended to form part of a new industrial city encompassing: an oil and gas refinery; energy, petrochemical and other strategic industries; an international airport; commercial and administrative areas; health and education facilities; residential neighbourhoods; public spaces; free zone, oil and gas export hub, and green areas. “The park will have first class facilities, utilities and advanced security built to the most up to date standards and practices”, explains Godfrey Hatejeka, SMEC’s Utilities Engineer, Uganda. “All this will be centrally controlled with a SCADA system”. Hatejeka has Ugandan oil and gas industrial park Global consulting engineering firm SMEC, part of the Surbana Jurong Group, was engaged by the Ministry of Energy and Mineral Development of Uganda to develop a Master Plan for an Oil and Gas Industrial Park in Kabaale, western Uganda.

been responsible for facilitating meetings between stakeholders and government bodies, co-ordinating project experts both local and international, and ensuring adherence to the scope of the contract and SMEC reporting standards. During construction the refinery will create approximately 5 000 jobs, and approximately 650 jobs during operation. When operating at full capacity, the Park will provide over 30 000 direct jobs and about the same number of indirect jobs. The Industrial Park will contribute to the overall development of the Ugandan economy and also facilitate the growth of the neighbouring trading centres like Hoima, Kabaale, Buseruka, Kaseeta, Kataba and others by providing support services to the Park. “Being the first project of this nature in Uganda specifically, and East Africa as a whole”, says Hatejeka “the Government of Uganda relied substantially on SMEC expertise for setting the project key performance parameters and training its staff on implementing this mega investment”. He concludes, “With SMEC’s global service capability the project was executed within the contract period and budget parameters, to the satisfaction of the client." 

Construction of R800-million project starts Leading South African property developer and investor Atterbury has begun construction on Old Mint Park, a prime industrial development neighbouring the landmark South African Mint and fronting the N1 highway, centrally located between Midrand and Centurion.

The development is a joint venture between Atterbury and Old Mutual Properties that will see a new state of the art 65 000 m 2 industrial park. The first building under construction is a business unit development offering premises ranging from 500 m 2 to 2 500 m 2 in a single 10 000 m 2 building. Concurrently constructed with this is a second building of 4 500 m 2 of warehouse and office space. Atterbury development manager Derrick Pautz reports that earthworks for this development commenced in December 2017. The business units are expected to be complete and available for occupation by the end of this year. “Old Mint Park has been well received by the market. Fortuna Food has already signed the first lease at the business park for a 2 000 m 2 unit. They will begin trading from their new facility from October 2018,” reveals Pautz. One of the development’s biggest drawcards is its location. It is positioned centrally between Johannesburg and Pretoria, where Midrand meets Centurion. It enjoys excellent frontage on the busiest stretch of highway in Southern Africa and is conveniently situated between the N1 – Brakfontein interchange, Old Johannesburg and Pretoria Main roads, and the Samrand on and off-ramps.

The site of Old Mint Park enjoys easy access from Old Johannesburg Road (K101). Importantly, the upgrade of the K101 into a four-lane dual carriageway is due to start later this year. It is from this wider arterial that Old Mint Park will have its own dedicated access road. Old Mint Park is also located directly opposite the future Samrand Gautrain Station and adjacent to the future K220 Road, which is incorporated into its master plan. What’s more, it is already well served by public transport, including busses and taxis. “Old Mint Park’s prime position in a major established and growing business node central to the Gauteng business hub makes it a great asset for business. It benefits from excellent connections to major transport routes, sweeping highway visibility and convenient surrounding residential, education and healthcare facilities,” says Pautz. 

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