Construction World April 2018

The business magazine for the construction industry

APRIL 2018

P U B L I C A T I O N S CR O WN B I R O FRANKI AFRICA

ANCHORS AFRICA’S TALLEST BUILDING

Rosebank gets two NEW ICONIC BUILDINGS

African cities need NEW DESIGN approach

Preliminary EDGE certification for WATERFALL DEVELOPMENT

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CONTENTS

04 No time soon New political era will not bring quick relief to SA’s civil and building sectors. 06 REIT conversion on course Attacq recently released its interim results up to 31 December. 10 African cities need new design approach Rapid urbanization on the continent necessitates a new way of thinking. 14 144 on Oxford breaks ground Growthpoint Properties has commenced with the construction of a premium-grade development. 16 Smart cities in Africa? It’s not just about ICT The infrastructure to build smart cities is more vital than ever.

22 Alternative to earth retention system Geosynthetic sand containers were used for landscaping in Umhlanga. 24 Rockfall attenuators Geobrugg discusses a passive protection measure against rockfalls. 26 Azuri Peninsula – Nigeria’s new residential development This project is situated on a man-made island and needed automatic climbing formwork. 30 Functional and attractive footbridges Can footbridges be more than mere functional structures? 32 Reigning supreme on Krugersdorp route Kaytech’s helped with the stalisation and drainage on the R28. 34 Continuing to thrive Sandton Central remains the epicentre of development in the country. 36 EDGE Preliminary certification for Polo Fields Waterfall development receives international green certification. 38 Successful completion of road rehabilitation project JG Afrika’s prominent role in rehabilitation of R399.

REGULARS

04 14 16 26 52 56

Marketplace

Property

ON THE COVER

Environment & Sustainability

Once complete, Pinnacle Towers in Nairobi, Kenya, with a height of almost 300 m, will be the tallest building in Africa. For Keller company, Franki Africa, which is in the process of doing the geotechnical work, this prestigious project has been somewhat of a milestone. Read the article on pages 20 and 21.

Projects & Contracts

Equipment

Products & Services

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COMMENT

Both the Rand Merchant Bank (RMB) Business Confidence Index and the Afrimat Construction Index (ACI) for the last quarter of 2017 were released recently. Both indices show an upward trend, a trend that was primarily brought about by positive political changes. However, there is the fear that the current uncertainty created by the land reforms could erase the gains made with the business confidence. Afrimat Construction Index Afrimat is an openpit mining company that provides industrial minerals and construction material. The Afrimat Construction Index (ACI) is a composite index of the level of activity within the building and construction sectors. The 2017 fourth quarter results of the ACI show an upward trend, broadly in line with the improvement in South Africa’s gross domestic product. After reaching an eight-quarter high of 127 at the end of 2016, the ACI declined for two successive quarters before recovering in the third quarter. It increased again in the fourth quarter of 2017 by 1,9%, to reach a level of 125,4. What the index indicates is that the construction sector continues to outperform the economy. The index is calculated from nine different constituent indicators.The improvement in the ACI between the third and fourth quarters of 2017 was driven mainly by the value of buildings completed by major municipalities, the retail sales values for hardware, glass and paint and the sales value of building materials produced. Five of the nine indicators included in the ACI showed improvements during the fourth quarter, with two others declining by less than 0,5%. The ACI bodes well for the construction sector’s growth prospects in 2018, especially with the change in the country’s political leadership. However, it too cautions about the impact of land reforms on the positivity.

Highlights in this issue

Online African expansion bauma CONEXPO Africa took place from 13 to 16 March. Although there can be no doubt that its support has been negatively influenced by market conditions in South Africa, the presence of delegations from countries elsewhere in Africa was encouraging to see. Crown Publications, the publisher of Construction World exhibited. It is a business-to-business publisher with a 30-year-plus track record and publishes six monthly and three quarterly magazines. It focuses on industry: mining, construction, capital equipment, mechanical and chemical engineering and electricity. Three of these publications, Capital Equipment News, Construction World and Modern Mining were highlighted at its stand. This year, bauma CONEXPO Africa had delegations from Botswana, Chile, Ethiopia, India, Kenya, Mozambique, Nigeria, and Zambia. Even though South Africa is still a powerhouse in African industry, the growth nodes have shifted to East Africa and to a lesser extent West Africa. While the main focus of Crown Publications is still on print in South Africa, its online offering, eNewsletters and PDF replicas enable it to increasingly transcend geographical borders and inform industry across Africa. RMB Business Confidence Index The Rand Merchant Bank (RMB) Business Confidence Index is compiled by the Bureau for Economic Research. This index rose to 45 points in the first quarter from 34 points in the fourth quarter of 2017 but remained below the 50-mark. According to RMB’s chief economist, this first quarter confidence jump is driven primarily by the expectations that South Africa will experience a more market-friendly phase with recent political changes in the country. Expectations have been raised that the country will make positive economic reforms.

Wilhelm du Plessis Editor

@ConstWorldSA

www.facebook.com/construction-worldmagazinesa

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

PUBLISHER Karen Grant 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

www.constructionworldmagazine.co.za

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MARKETPLACE

No time SOON

of crises in many municipalities would be difficult to correct. The picture was not much better in the building sector, he noted, where house price inflation needed to rise faster before any improvements in demand for products like cement and concrete could be expected. Producer price inflation in building and construction was tight at just 2,5%, lower than the average for the overall economy. Richard Tomes, sales and marketing executive AfriSam, highlighted Dr Jammine’s point that fixed capital formation needed to be about 25% of gross domestic product if it is to really promote a sustainable growth path. “We are nowhere near that figure, in fact, we are not even at 15%,” said Tomes. “The last time we managed to get close to this target was around 2007/2008, when South Africa was investing heavily in infrastructure ahead of the 2010 FIFA Soccer World Cup. It was during this time that there was a cement shortage, leading to some players introducing new production capacity into the market, which caused a cement surplus. This short period of growth however came crashing down very fast when the global financial crisis set in. Although we have seen global markets recover since then, South Africa has unfortunately not kept pace with growth in the global economy.” “There is a very close correlation between GDP growth and cement demand, and if South Africa’s expected growth figures of between 1,5% and 2,5% are projected, the country will still have surplus capacity for many years to come,” he said. “That is why AfriSam is of the view that there are too many players and too much capacity in the local cement industry, and why there is a need for consolidation to improve efficiencies.” Even though the country’s growth forecast had been raised to a possible

While promising some hope for improved economic growth, leading economist Dr Azar Jammine said the government’s recently unveiled budget will not bring any quick relief to South Africa’s struggling civil engineering and building sectors.

S peaking at AfriSam’s 2018 post- budget breakfast in Sandton recently, Dr Jammine advised industry to temper its enthusiasm for now and not to expect “too much too soon”. He said it was true that new political leadership had opened the way for a more positive economic trajectory, but warned that more concerted economic restructuring was still required for a sustainable recovery. On the plus side, he pointed to sharp declines in long term interest rates that will mean lower interest repayments on government debt, allowing for revenue to be channelled to other areas of spending. Fixed capital investment is also likely to accelerate. “Businesses have been sitting on billions of rands in their balance sheets and maybe now, with President Ramaphosa in place, more of that will start coming

through,” he said. “All I am warning about is not to expect the results to be immediately obvious in the next few months; more likely they will be seen in 2019.”

Fixed capital formation needs to be about 25% of gross domestic product if it is to really promote a sustainable growth path. He pointed to structural issues such as the poor position of state-owned enterprises, which have essentially ‘run out of cash’ and no longer have the revenue to commit to infrastructure spending. The number of skilled people leaving the civil engineering sector would also hold back its recovery, while the rent-seeking practices at the heart

Richard Tomes, AfriSam’s Sales & Marketing Executive.

1,9% for 2018, there was no ‘massive uptick’ in cement

demand likely – either in

South Africa or the rest of the continent. 

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REIT conversion on COURSE Attacq Limited, (Attacq), the JSE listed property company, developing Waterfall City and Waterfall

total PGLA of approximately 8 121 m², valued at an estimated R75,5-million. Attacq, through two 50/50 joint ventures with Barrow Properties and Zenprop, are developing the mixed-use, The Atria, development and Waterfall Corporate Campus Office Park. Once completed, these two developments will increase the completed Waterfall developments with an additional 71 348 m² PGLA. “Waterfall remains a unique value proposition for the continued development of a new city in the heart of Gauteng, making it the choice for corporate consolidation. During the reporting period we developed over 114 000 m² of PGLA, emphasising the strong offering of the precinct. Mall of Africa Mall of Africa continues to perform well with turnover growth from December 2016 to December 2017 of 11% and a turnover ratio of R4 600/m² for the month. Active asset management resulted in tenant movements of 4 952 m² in new lets and right sizing existing tenants which led to an increase in tenant turnover from R5,2-million to R17-million for the comparative period in the same space. We strive to offer a fun, relevant, engaging, social and helpful, experience at all our properties,” Jackie van Niekerk, COO commented. Diverse portfolio Attacq has a quality diverse South African portfolio across sectors with 52,6% in retail, 37% in office and mixed-use, 8% in light industrial and 2,4% in the hotel sector. During the last six months the weighted average lease expiry (“WALE”) profile increased from 6,4 years to 6,7 years. Overall portfolio vacancies, measured in terms of PGLA, increased by 18 130 m² when compared with 31 December 2016. Subsequent to 31 December 2017, 10 744 m² of this vacant space was let, reducing the overall vacancy rate to 3,2%. Vacancies that were filled post 31 December 2017 relate mainly to Gateway West (9 403 m²) and Corporate Campus (947 m²). Rental income increased by 6,9% to R980-million compared with the prior comparative period of R916,7-million. Net rental income, decreased by 2,2% compared with December 2016, negatively impacted by straight-line lease income adjustments. The negative accounting adjustments are a result of longer term leases signed with three existing tenants, i.e. Adams & Adams, Aurecon and Massbuild. Developments completed during the past six months, added 100 676 m² of PGLA, bringing the total PGLA to 807 467 m². Rental income will be positively impacted for the balance of the financial year as the new leases for the five completed buildings and the one extension only commenced after 1 January 2018. During the past six months, Attacq successfully refinanced R3,2- billion of debt, through its Attacq Retail Fund Proprietary Limited and Lynnwood Bridge Office Park Proprietary Limited portfolios. “Half of the total debt was due to expire in May 2018 and the Group decided to refinance the entire debt amount earlier in order to extend the tenor of its loan book and take advantage of favourable pricing, which was attractive across each of the three, five and seven-year tranches. The restructuring resulted in attractive pricing, extension of tenor and new funding relationships. As part of our risk mitigation strategy, approximately R11,3- billion or 98% of total committed facilities of R11,5-billion were hedged by way of fixed interest rate loans and interest rate swaps as at 31 December 2017. Our conservative approach to debt management has stood us in good stead, navigating the current

“A s we transition to a REIT, we remain focused on our four value drivers namely our South African portfolio, strategic investment in MAS, Waterfall development pipeline and our retail investments in the rest of Africa while ensuring that we deliver sustainable growth and unlock shareholder value. Our REIT conversion is paramount, shifting our focus from providing capital growth to a focus on total return comprising distributions and capital growth. This should allow for enhanced share liquidity, lower gearing cost and share price rerating,” commented Melt Hamman, Interim CEO of Attacq. by 9,5% from R18,77 to R20,56 during the reporting period. The group generated distributable earnings per share of 38,9 cents for the six months to 31 December 2017. • Year-on-year growth in net asset value per share (‘NAVPS’) adjusted for deferred tax of 10,1% to R23,51 • Distributable earnings per share of 38,9 cents achieved during the last six months • Mall of Africa’s trading densities increased December on December by 10,7% • Waterfall developments completed adding 114 916 m² • Gearing ratio improved from 41,4% to 36,2% year-on-year Attacq’s flagship Waterfall development is an attractive value proposition given its location in the centre of Gauteng, with easy access to major transport routes. The group has 975 468 m² of remaining developable bulk in Waterfall. This bulk is ungeared and approximately 600 000 m² is already serviced and immediately available for the value accretive roll out of commercial, residential and industrial developments. River Creek, the new Deloitte head office in Waterfall City, and Cummins in the Waterfall Logistics Hub were under development as at 31 December 2017. These two developments will increase the total completed Primary Gross Lettable Area (PGLA) at Waterfall by 58 732 m². Over the last six months the team concluded a total amount of 92 456 m² of leases for new office and industrial space. With five buildings having been completed during the reporting period, the development pipeline within the Waterfall portfolio remains strong. Construction commenced on the Pirtek and speculative ware- house development post the reporting period, with an estimated Logistics Hub, announced interim results for the six months ended 31 December 2017. Adjusted NAVPS for deferred tax increased by 10,1% from R21,35 to R23,51 and NAVPS

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Melt Hamman, Interim CEO of Attacq.

macro-economic operating environment,” said Melt Hamman. As at 31 December 2017, Attacq’s shareholding in MAS Real Estate Inc (MAS) was 22,7% down from 30,6% as at 31 June 2017, due to two MAS capital raises in September and December 2017 in which Attacq did not participate. The market value of Attacq’s investment in MAS, using the MAS closing price of R22,80 per share as at 23 February 2018, is R3,3-billion. “Our strategic, long-term investment in MAS is an important platform, further diversifying our overall portfolio. We remain supportive of MAS’ long-term strategy, investment case and management team. We remain focused on investing into quality assets that generates a strong cash return. Our portfolio of South African income producing assets is underpinned by strong property fundamentals. This, our investment in MAS, Waterfall development pipeline and retail investments in Africa offers a strong value proposition to shareholders,” concluded Hamman. 

MARKETPLACE

SUPPORTING CALL Consulting Engineers South Africa (CESA) is encouraged by the impassioned call from President Cyril Ramaphosa for commitment to ethical behaviour and ethical leadership, a call which resonates strongly with that expressed by its own leadership.

• CESA represents over 540 companies employing in excess of 24 000 people. • Leading call for a collaborative and sustainable approach between private sector and government.

T he organisation further commends President Ramaphosa for stating that infrastructure investment is key to growing the economy. CESA welcomes the intervention to decisively stabilise and revitalise state owned enterprises (SOEs) as well as those implicated in state capture. Chris Campbell, CEO of CESA applauds Ramaphosa for urging professional bodies and regulatory authorities to take action against members who are found to have acted improperly and unethically. As a professional body representing over 540 companies employing in excess of 24 000 people, CESA subscribes to a Business Integrity Management System where its members commit to upholding and assisting industry stakeholders in upholding the dignity, standards and reputation of the consulting industry. CESA further commends President Ramaphosa for stating that infrastructure investment is key to efforts to grow the economy, create jobs, empower small businesses and provide services to our people. As an Industry body, CESA has been leading the call for a collaborative and sustainable approach to the manner in which the private sector supports government in effecting infrastructure delivery optimally, ensuring best value for money. “We are actively developing tangible tools and continuously strengthening relationships in order to facilitate constructive support of the public sector to ensure effective delivery since our members are at the forefront of infrastructure development in South Africa and are able and keen to assist public authorities,” stresses Campbell. To quote directly from the President’s address, namely, “As some

of our projects are taking time to get off the ground and to enhance our efforts, I will assemble a team to speed up implementation of new projects, particularly water projects, health facilities and road maintenance. We have learnt some valuable lessons from our experience in building all the new infrastructure, which will inform our way ahead." CESA’s response to his call is, “Send me. We are ready – sikulungele.” In addition, CESA welcomes the intervention to decisively stabilise and revitalise state owned enterprises (SOEs) as well as those implicated in State Capture. State Capture impacts negatively on the credibility and day to day running of the SOE’s as fiduciary duties are ignored to serve self- interest and narrow agendas with procurement spend not yielding value for money returns. “This begs the question as to whether the Public Finance Management Act 1 of 1999, is not just a blunt instrument, as nobody seems to be held to account and we still simply see Boards being ‘put out to pasture’ with executives exiting under a cloud with golden handshakes and questionable bonus payout prospects. This status quo cannot be sustained,” cautions Campbell. “We will change the way that boards are appointed so that only people with expertise, experience and integrity serve in these vital positions,” stated Ramaphosa. CESA strongly believe that the appointment of members to the boards of SOE’s needs to be done on merit and be based on competence and suitability for the specific position. Cadre

deployment into key positions onto the boards of SOEs without meeting the competency and suitability criteria, plays a big role in maladministration, poor corporate governance and certainly creates a fertile environment for corruption to take place. The appointment of people who are qualified and competent for these positions, will go a long way towards helping the country address the infrastructure backlog and move forward in achieving the objectives of the National Development Plan. As responsible citizens, CESA offers the expertise of experienced engineering practitioners who are able to assist in crafting the best engineering solutions to many of these technical challenges. CESA believes that it is the responsibility of government to hold these SOE’s to account and there is a need to rebuild the trust relationship between government and business in order to create the level of political certainty which will encourage private sector investment. “We strongly believe that a correction in the focus of SOEs needs to be enacted if we are to make economic transformation in our Country a reality,” he concludes. 

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AFRICAN CITIES need new design approach

More than ever, urban environments in Africa require a new development approach. This is evident from the pervasive poverty, inadequate infrastructure, growth in slums, weak urban- rural linkages, the marginal role played by local governments, and climate change.

About NEW URBAN NEW URBAN is the result of 80 years of combined experience and a new, integrated design approach. Our team of talented, young designers and experienced mentors combine the latest technology and thinking with a legacy of responsible and responsive design projects. The Holm Jordaan Group has a history of being at the forefront of environmental thinking in South Africa, thanks to its founding members Dieter and Albrecht Holm, who had founded the firm Holm and Holm Architects in 1962, winning numerous competitions and awards over the years. During 2018, the practice GWA Studio established by Gary White in 2003, merged with the Holm Jordaan Group. GWA Studio has a history of being at the forefront of ‘new- urbanist’ thinking in Africa, for which they have won numerous international accolades.

T he United Nations (UN) ‘Report on the State of World Cities’ predicted that, by 2050, Africa will have an urbanised population of 1,2 billion, representing nearly 25% of the world’s Urban population. According to the ‘New and Emerging Challenges in Africa Summary Report’ by the Economic Commission for Africa, cities have, despite the many challenges, played a pivotal role in sustaining economic growth in recent years, generating about 55% of the Continent’s total gross domestic product (GDP). “Cities that are not properly planned and managed are a burden on the natural resources, impacting negatively on the environment and the living conditions of its inhabitants,” says Gerrit Jordaan, Director of Holm Jordaan Architects & Urban Designers.

“That being said,” Jordaan continues, “Through strategic urban planning, well-planned and well-managed cities can minimise environmental losses and generate creative solutions to enhance the quality of the environment and mitigate, or Cities that are not properly planned and managed are a burden on the natural resources, impacting negatively on the environment and the living conditions of its inhabitants.

Logan joined GIBB in 2011 and since then, has operated in the roles of Divisional Head, Director and Acting General Manager for the company’s Dams, Hydropower and Underground Works sector and the authorised representative for many joint venture partnerships at the company. He has been Project Manager and Project Director on several projects, both locally and internationally. Group Business Development Executive, Muzi Siyaya, says “Logan has the experience and strategic insight in handling the GIBB Capital portfolio. With his specialist knowledge and experience in project economics and planning of multi-disciplinary engineering projects, we believe that he will leave an indelible mark through his work in this new role. Further to this, Logan has been tasked with developing the GIBB Capital model to align with the rapidly changing trends in infrastructure development.” Commenting on his appointment, Logan says, “I am grateful for division that provides bespoke specialist services aimed at unlocking the financing and implementation of projects. Logan is a Civil Engineer with 17 years of experience in the planning, design and construction monitoring of water transfer schemes and power projects. NewManaging Principal GIBB Engineering and Architecture is excited to announce the appointment of Colin Logan as Managing Principal of GIBB Capital, its project preparation and advisory

Colin Logan, Managing Principal of GIBB Capital.

the confidence my colleagues have in me to take on this role. There will be challenges along the way, but I am prepared to face them, grow the business, and ultimately affect positive change.” Logan graduated with BSc Engineering Degree from the University of Cape Town in 2001, is a registered Professional Engineer, and is currently completing his Executive Masters in Energy Management, which he is doing through the BI Norwegian Business School in Oslo and in partnership with the IFP School in Paris. 

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Gerrit Jordaan, Director of Holm Jordaan Architects & Urban Designers.

even reverse, the negative consequences of climate change”. ‘Five principles of Sustainable Neighborhood Planning’, a study compiled

by the UN Habitat, shows that urban form and density, together with an

environmentally-friendly public transport system, will reduce energy consumption, produce fewer carbon emissions per capita, making people less dependent on transport, with subsequent positive impacts on the environment. These principles adhere to the the UN Sustainable Development Goals (SDGs). This need for a new, integrated approach to urban planning and development, lead Holm Jordaan Architects & Urban Designers to merge with GWA Studio to form a new firm, NEW URBAN. According to Gary White, Director of GWA Studio, said approach would entail the following – high density, mixed-use and transit-oriented development; the design of the public realm through form- based codes and responsive architecture; integrated street networks and the removal of freeways, where appropriate. “Sustainable urbanism is categorised by incremental urbanism through neighborhood development, suburban retro- fit and the creation of walkable streets. Densification, optimisations of systems, and efficient public transport and mixed-use development is a prerequisite”. Adds Jordaan, “Integrated design is not just taking a lot of – sometimes conflicting – aspects into consideration. It is a way of creating urban solutions that use as little as possible means to give as many people as possible the best enabling environment”. It is this goal NEW URBAN, with 80 years of combined experience, aims to achieve – to provide Africa with the much- needed new integrated approach to urban development. 

Ponte City in Berea, Johannesburg, South Africa. It was built in 1975 to a height of 173 m. The 55-story building is cylindrical, with an open centre allowing additional light into the apartments. The centre space is known as 'the core' and rises above an uneven rock floor.

Basil Read successfully concluded a rights offer on Friday, 23 February 2018. The full R300-million required for repayment of the bridge loan and working capital was raised. The sale had opened on 12 February. Mapasa is confident the steps planned to effect a turnaround – for which the rights offer was key – will work. The shares, offered at a discounted price of 22 cents a share, was supported by the company’s major shareholders, says Mapasa. The path to turnaround With R300-million in new cash in its coffers, construction and mining firm, Basil Read is on track to effect a solid turnaround, according to CEO Khathutshelo Mapasa.

Shareholders led by Allan Gray, PSG Asset Management, Prudential Investment Managers, Sishen Iron Ore Community (SIOC) Trust and the Industrial Development Corporation (IDC) undertook to follow their rights. Mapasa acknowledged that the path to a turnaround is not a short or easy journey.

“With this new cash injection, Basil Read is on a firm path towards recovery,” Mapasa said. “We are cognisant of, and grateful for, the shareholders’ faith in us. There’s hard work ahead, but we’re ready.” 

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MARKETPLACE

O n the back of seemingly improving economic conditions in several Southern African countries, prospects are high that the region may witness a hive of construction activity this year. The recently-ended bauma CONEXPO AFRICA provided construction contractors with a platform to closely interact with manufacturers to help guide those critical equipment buying decisions, especially at a time when they may be looking at embarking on their overdue fleet replacement programmes. At such a time when construction businesses are shopping around for their construction vehicle needs, Raimo Lehtiö, MD of Scania South Africa, is of the view that single source alliances when it comes to the procurement of construction vehicles – where one firm services all the application needs – can help construction firms gain a competitive and cost advantage. It is for this reason that Scania offers a wide selection of con- struction vehicles to cater for the different needs of the construction segment, all the way from tippers and concrete mixers, to brick and crane carriers. To date, Scania offers a wide selection of 15 con- struction vehicles to the local construction fraternity, according to Theuns Naude, Segment Manager, Construction/Public and Special at Scania South Africa. At bauma CONEXPO AFRICA, which took place at the Johannes- burg Expo Centre from 13 to 16 March, Scania showcased a line-up announced its plans to offer completely-built vehicles to eliminate the long lead times often associated with acquiring new construction vehicles. By Munesu Shoko SCANIA demonstrates CONSTRUCTION APTITUDE At this year’s bauma CONEXPO AFRICA, Scania South Africa demonstrated its ability to offer a wide selection of vehicles to service diverse construction applications. The OEM also

of six construction vehicles. Led by the flagship Scania G460C- B8x4EHZ twin-cylinder mining tipper, the line-up also included the Scania P410CB8x4MHZ brick carrier with a crane; the Scania P410C- B8x4MHZ 15 m³ construction tipper; the Scania P360CB6x4EHZ 12 m³ semi-rock tipper; the Scania P360CB6x4EHZ 16 000-litre water tanker; and the Scania P310CB6x4MSZ 6 m³ drum mixer. Century-long experience Construction has always been an important sector for Scania globally, although it was previously not a big focus market for Scania South Africa. Leveraging Scania’s 109-year experience in the global construction sector, Scania South Africa’s construction range was reintroduced in 2015, under the guidance of a dedicated Construc- tion Division. The renewed focus has led to the introduction of an extensive range to offer a wide range of solutions to the different applications within the construction sector. The special construction focus has also seen Scania grow its market share significantly in recent years. “Since the reintroduction of the Scania construction range in 2015, we have seen 50% growth year-on-year in this segment,” says Naude. “We closed 2017 with an increased market share, and we are confident of doubling that in 2018, due to a number of reasons, including a better construction outlook and some of the key strategies we have in place.” While sales numbers are the conventional measure of success for any OEM, Naude says Scania is of the view that the ultimate suc- cess gauge is customer satisfaction and adding value to customers’ businesses and operations. Bearing in mind that construction is an uptime-conscious indus- try where any form of downtime is out of question, Scania South Af- rica is working on a strategy to reduce its new vehicle delivery lead times. According to Lehtiö, the OEM is looking to partner with a team of reputable and experienced local bodybuilders to offer completely built vehicles. While Scania has a big focus on delivering vehicles built to customer specifications, Lehtiö says the complete vehicle • Single source alliances in the procurement of construction vehicles help construction firms gain a competitive and cost advantage. • Scania offers a wide selection of construction vehicles to cater for the different needs of the construction segment, from tippers and concrete mixers, to brick and crane carriers. • The ultimate success gauge is customer satisfaction and adding value to customers’ businesses and operations.

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approach will cater for some industry standard specifications such as tippers and mixers. “Time is money in construction and we believe this approach will significantly help our customers with quick delivery times once the order is placed,” says Lehtiö. “As a customer-driven solutions provid- er, we want to be able to meet the short delivery lead times because most of the construction work is project-based and customers ought to place their vehicle orders when they are awarded the contracts. They ought to place those orders with an expectation to take deliv- ery of the vehicles immediately to start their jobs.” He adds that it is very important to have a strong network of bodybuilding partners who are ready to invest in completely-built vehicles. This allows the supplier to meet the often short and strict lead times for construction customers. “The OEM, together with its network of bodybuilding partners, must have the flexibility and ability to invest in a standing inventory of readily-made vehicles,” says Lehtiö. ABOVE AND LEFT: Scania showcased a line-up of six construction vehicles. Led by the flagship Scania G460CB8x4EHZ twin-cylinder mining tipper, the line-up also included the Scania P410CB8x4MHZ brick carrier with a crane; the Scania P410CB8x4MHZ 15 m³ construction tipper; the Scania P360CB6x4EHZ 12 m³ semi-rock tipper; the Scania P360CB6x4EHZ 16 000-litre water tanker; and the Scania P310CB6x4MSZ 6 m³ drum mixer.

regions, such as the Western Cape, but a greater focus on water infrastructure projects, such as dams, purifying plants and water reservoirs, has opened up a different leg of construction activity,” says Naude. Lehtiö is also encouraged by the new political dispensation in Zimbabwe. The new government has identified infrastructure development as a key focus area, and renewed efforts to kick-start the dualisation of the Beit Bridge-Harare highway is testimony to the concentration on rolling out the planned construction projects. “Due to the challenging economic conditions in the past few years, construction contractors have stalled their fleet replacement programmes, choosing to sweat their existing assets. With a bit of positivity and better business confidence, construction companies may be encouraged to finally renew their fleets this year, especially bearing in mind that many have postponed this for a long time,” concludes Lehtiö.  ABOVE : Raimo Lehtiö, MD of Scania South Africa believes that with a more positive outlook in the country and better business confidence, construction companies may be encouraged to finally renew their fleets this year BELOW: Scania’s impressive stand at the recently ended bauma CONEXPO AFRICA. The expo provided construction contractors with a platform to closely interact with manufacturers to help guide those critical equipment buying decisions

Lehtiö argues that only OEMs with that sort of capa- bility ought to be preferred suppliers in the construction industry. “Construction is a no-go area, especially when a company doesn’t have that sort of financial strength and resilience to build up the much-needed service structure for such an uptime-driven sector,” says Letio. Positive signs With several key indicators – such as the new political developments in a number of southern African countries (South Africa, Zimbabwe and Angola), improved mining activity and renewed business confidence – pointing towards a favourable economic outlook, Naude is optimistic that governments will soon start to roll out some significant infrastructure projects this year. This is considering that these countries understand that infra- structure development is a key economic enabler. “The outlook for construction looks positive in South Africa and southern Africa at large. Drought conditions have put a damper on construction projects in some

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PROPERTY

Growthpoint Properties Office Division Director, Rudolf Pienaar.

144 Oxford BREAKS GROUND

driving force behind its new developments including the recently opened Zeitz Museum of Contemporary African Art (Zeitz MOCAA) in the iconic Silo District, which is considered one of the most exciting developments in the world in 2017. 144 Oxford will be as eye-catching and innovative as Growthpoint’s other iconic developments. It features a spectacular glass façade across two interlinked towers, each standing proudly with prow-like prominence giving it exceptional views across the city, looking down over the leafy green suburb of Melrose. Growthpoint Office Division Asset Manager, Paul Kollenberg, points out there is an increased demand in the Rosebank node for P-grade office space. “Rosebank is attracting even more leading businesses and demand for space in the well-located Rosebank office hub can be seen in its P-grade rental levels, which currently surpass even those of nearby Sandton and Melrose.” Growthpoint is a JSE-listed REIT (real estate investment trust) and a leading international property company. It owns and manages a diversified portfolio of 533 properties, including 473 properties in South Africa, 59 properties in Australia through its investment in Australian Stock Exchange- listed Growthpoint Properties Australia and a 50% interest in the properties of the V&A Waterfront, Cape Town. It also owns a 26,9% stake in the €1-billion property portfolio of London Stock Exchange Alternative Investment Market-listed Globalworth Real Estate Investment, the largest owner of office space in Romania. 

Growthpoint Properties, the leading JSE-listed international property company, has commenced excavation for its new 35 000 m 2 premium-grade office development in Rosebank, called 144 Oxford.

I n prime position at the gateway to Rosebank, 144 Oxford features two P-grade office towers of some 17 500 m 2 each. All of this is located directly opposite the landmark Hyatt Regency, and a short walk from the Rosebank Gautrain Station and other public transport which is plentiful in this well pedestrianised quarter. Taking a step out of its front doors will connect you to the vibrant restaurants, food, lifestyle, shopping, hospitality and entertainment offered by the popular hub of Rosebank Mall, The Zone @ Rosebank and The Firs. Growthpoint Properties Office Division Director Rudolf Pienaar says: “We are excited to develop this new prime property with its prominent Oxford Road address and unrivalled exposure. Growthpoint is creating high-performance workspace in a sustainable office building designed for leading businesses that want to position themselves optimally for productivity and • Growthpoint owns and co-owns the largest portfolio of green certified office buildings of any company in South Africa. • Glass façade across two interlinked towers, each giving exceptional views across the city. • Targeting 4 Star Green Star SA rating.

staff retention and enjoy a healthy and energising working environment where their business, people and partners can thrive.” Respected as the leader in commercial green building, Growthpoint owns and co-owns the largest portfolio of green certified office buildings of any company in South Africa. 144 Oxford continues its environmental innovation with Growthpoint targeting a 4 Star Green Star SA rating from the Green Building Council of South Africa (GBCSA) for the development. Head of Development at Growth- point, Pieter Engelbrecht, comments: “Growthpoint is going from strength to strength in property development and has grown a respected reputation for delivering prestigious, award-winning, green building and other quality and custom-built development projects. We have built up strong development skills and capacity within our team, and the magnificent 144 Oxford will benefit from this expertise.” Growthpoint is behind two of South Africa’s most admired and anticipated developments in the last year. It is co- developer and majority co-owner, with partner Zenprop, of the outstanding new Discovery global headquarters in Sandton Central, which at 112 000 m 2 is the largest single phase commercial office development in Africa. As 50% owner of the V&A Waterfront, Growthpoint is a

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MIXED-USE Hatfield Square

T he 2 200-bed project is owned by Redefine and Respublica, and managed by Respublica Student living. The 51 000 m 2 development, excluding basement levels, has given a new lease of life to the Hatfield Square area by incorporating 3 500 m 2 of retail space, including a mix of restaurants and line shops facing Burnett Street. Paragon Senior Project Architectural Technologist, Antoinette Kloppers notes that this exciting development has been designed specifically to stand out from its surroundings. “The design not only ensures that each unit has maximum access to views and light, but also has the added benefit of promoting individual communities with their own amenities and shared spaces, within the larger scheme.” These include a rooftop gym overlooking the retail area, a computer centre, large study centres, recreation rooms, laundry facilities, a swimming pool, and landscaped gardens and a braai area. There are a total of 85 common facilities spread out over the four buildings and seven courtyards comprising the development, of which six are exclusively for student use. It is anticipated that Block D, facing Prospect Street, will be the highest building in the area upon its completion. The student accommodation itself focuses on five modular unit types, namely single and double-sharing, single en suite with own kitchenette, double-sharing en suite and apartment-style units with four beds, own ablutions and kitchenettes. “This creates a range of rental options, with common study rooms and lounge/kitchen areas on each floor,” Kloppers highlights. accommodation, focusing on an accessible and safe mixed-use development with all the necessary amenities. Hatfield Square in Pretoria, designed by architecture and interior architecture practice Paragon, represents the latest trend for student

“The precinct benefits from different scales of public, semi-public, and private spaces. Common areas are defined on the façade with sculptural forms and colours linking back to the theme of it being essentially a neighbourhood. Rooms are defined on the façade by an array of window patterns that reflect the diversity of accommodation types,” Klopper elaborates. She adds that the Burnett Street side of the development acknowledges the history of Hatfield Square by recreating an active lifestyle courtyard, where students and the public can socialise and enjoy a variety of retail offerings and restaurants. Paragon is a well-known adopter of sustainable design and the latest advances in green building. At Hatfield Square, various sun studies were undertaken to optimise building heights to ensure that all rooms have maximum access to air and light. The result is a precinct of four interlinked buildings, arranged around a series of intimate courtyard spaces, where students can enjoy the smaller neighbourhoods within their blocks. Each building is defined by a ‘theme’ colour, which is visible internally and externally. Aerated Autoclaved Concrete (AAC) blocks were selected as the main construction material due to their thermal and fire-insulation properties, which also accelerated the construction programme. An Exterior Insulation Finishing System (EIFS) from Terraco South Africa was applied to the blockwork. Various textured finishes of the coating were applied in three shades of grey to create an interesting relief pattern on the façade. The buildings also feature natural ventilation, water-storage tanks, and heat farms to reduce energy consumption. Paragon, well-known for its iconic buildings in Sandton and Rosebank in Johannesburg, has been diversifying into different sectors such as residential and student accommodation, and even industrial projects. It is one of the largest integrated practices of its kind on the continent, and has undertaken designs in 18 countries, including Brazil, over the past seven years. Projects in 11 African countries have been constructed and are complete, while six are in construction phase. 

The development has given a new lease of life to the Hatfield Square area.

The precinct benefits from different scales of public, semi-public, and private spaces.

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ENVIRONMENT & SUSTAINABILITY

SMART CITIES in Africa? It’s not just about ICT By Eckart Zollner, Group Business Development, Jasco

S mart cities don’t just deliver cost savings and efficiencies; cre- ating a sustainable enabling environment can impact economic potential and growth. In Africa, a dearth of infrastructure provides a greenfield opportunity to get it right first time. However, strategic planning will be key to success. ICT may be the core upon which smart cities are built, but getting buy-in from stakeholders to deliver smart services means building relationships- putting in place processes and integrating systems and implementing the right controls, security and manage- ment systems. This requires an ICT partner with more than just technology skills. A broad knowledge and experience of industry sectors (from utilities to public sector service delivery, manufacturing value chains, industrial operations and corporate processes) will be essential to co-ordinate, synchronise and integrate systems and technologies as they converge within a single intelligent city hub. UN studies and other research offer alarming predictions: by 2035, the majority of Africa’s people (over 50%) will be urbanised, more than doubling current urban populations in some countries. By 2030, six of the world’s 41 megacities will be in Africa. By 2050, Africa’s slum population will have tripled. Governments will be highly pressured to keep pace with urban development. As mass urbanisation continues across Africa, putting in place the fundamental infrastructure needed to build smart cities has never been more important. Smart cities are emerging in Zambia, Ghana, Mauritius and Kenya. For all of them, the first hurdle is installing the Information and Technology (ICT) infrastructure, but the capabilities required to kick-start smart city services and efficiencies reach beyond ICT.

• By 2030, six of the world’s 41 megacities will be in Africa. • By 2050, Africa’s slum population will have tripled. • How smart technologies are deployed and aligned to customer needs will determine their success.

Who drives smart city development? At present, smart city and smart community developments are being driven by developers and through public-private partnerships (PPPs). Governments recognise the need for smart city development and are building it into development policies. However, they face a number of challenges: • They must upgrade existing legacy systems to function in a smart city environment • Smart city infrastructure is costly to implement • Service delivery and revenue collection systems must be developed • Services need to be rolled out tactically and in a phased manner to secure a return on investment and ongoing revenues to ensure the expansion and sustainability of services In terms of minimising cost, new greenfield developments remain optimal, with fibre being put into the ground alongside civil infra- structure (water, sewerage pipes, etc.). This is also optimal in terms of determining the distribution of infrastructure for mobile and Wi-Fi providers. Cost can nonetheless stymie progress, which is where PPPs are useful. Developers are more commercially-minded than governments and are able to target high-income customers, combining infra- structure development with security to secure revenues. This often results in exclusive gated communities. However, in PPP arrange- ments, developers are extending these benefits in a phased manner with support from government to other segments of the community. Key elements of smart city success?

The underlying ICT infrastructure is a key element of smart city success. Open access networks will be essential in the long term. Rather than tight network control by individual infrastructure owners, or the complexity that results when many providers attempt to manage their own physical networks and service delivery, an open access network is open to any ISP or service provider. Centrally managed, open access networks facilitate ease of connection to the network, improved controls and high-quality services. And a big plus: open access networks max- imise use of the network, maximising revenues and minimising expenditure. Fully managed data centres will be important. From the infrastructure layer upward, smart city services are usually provided independently. These services include utilities, security, Internet of Things or machine-to-machine services, and analytics. In bigger and more developed countries, multiple datacentres will facilitate interconnects between providers at local and international levels. However, at every level, because everything is powered by tech- nology and connectivity, data centre control must be

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