Bahrain-based GFH Financial Group has announced that its UK subsidiary, Roebuck Asset Management has concluded an off-market sale of a Tesco Distribution Centre for more than $135 million.

In a statement, GFH said that the 540,000sqft temperature-controlled centre was originally developed by Tesco in 2010. The warehouse serves in excess of 400 supermarkets and convivence stores across the South-West of England and South Wales, forming a crucial link in Tesco’s distribution network.

The sale marks the conclusion of an extremely successful hold period of Roebuck, who acquired the asset for $94 million in October 2017, on behalf of a consortium of institutional investors from Korea.

Roebuck Managing Partner Hugh Brown said: “The sale of Tesco Avonmouth has delivered our Korean investors significant out performance following a four and-half-year hold period producing total annual return in excess of 16%.”

The strong income and value increase provided the investors with a post-tax internal rate of return (IRR) of more than 16%, well in advance of the target business plan for such a core asset, the statement added.

The asset was the second acquisition Roebuck made with South Korean investors and also with Capstone Asset Management. The sale of Tesco Avonmouth follows Roebuck’s 2021 sale of the Accolade Wines, Avonmouth Warehouse for $123m to Tritax Big Box REIT, it said.

“It was fantastic to work with Capstone on another successful investment and the intention is to hopefully find new projects to work on together. Roebuck is actively pursuing opportunities to recycle capital from these sales for either UK and European logistics assets,” Brown added.

GFH acquired a majority stake in Roebuck, which continues to operate independently, in December 2020 including its investments in these strategic assets. Since the acquisition, Roebuck has significantly grown in terms of team members and new offices, with locations being opened in London and Spain, while there are plans for further office openings over the next 18 months.

The intention is to continue to grow assets under management (AUM) and collectively as a group target new acquisitions of $500 million over the course of 2022, the statement said, adding that this would be accomplished with GFH’s backing.

Roebuck is using its local market expertise and significant track record to establish new investment vehicles in the Core + and Value Add space working with existing and new institutional investors, the statement continued.

Nael Mustafa, the Board Member at Roebuck Asset Management and Co- Chief Investment Officer at GFH, said: “We’re pleased to announce this important exit by Roebuck of one of the prime logistics assets in the portfolio. The strategy to sell the Tesco distribution centre is in line with Roebuck’s plans to continue to build on its already very strong track record.”

The strategy is in line with our recent combined sale of the Amazon portfolio in Spain which generated similar returns over a shorter hold period. While divesting from these assets reduces the immediate AUM, the pipeline identified and secured across Europe will result in a net gain over the course of 2022.

“We look forward to announcing new transactions with Roebuck within the European logistics marketplace,” he concluded.

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Source: ME Construction News

The total length of Emirates Central Cooling Systems Corporation’s (Empower) district cooling pipeline network across Dubai exceeded 369km by the end of 2021. Empower said the network grew by 33.2% during the 2018-2021 period.

The company attributed the network expansion in 2021 to the new projects added to Empower’s portfolio, most notably the Marsa Al Arab, and the expansions of Dubai Healthcare City, Dubai Land Residential Complex (DLRC), Business Bay and the expansion of DIFC to provide company’s district cooling services to Wasl 1 and others, the firm said in a statement.

“The expansion of our district cooling network is driven by the increasing demand for environmentally-friendly district cooling services on the one hand and on the other hand, it reflects Empower’s tireless efforts to develop an infrastructure that help achieving the goals of Dubai sustainable development plans,” said Empower CEO Ahmad Bin Shafar.

Bin Shafar pointed out that the expansion was also due to the continuous and increasing urban development process in Dubai. He concluded, “The network expansion operations are implemented using cutting-edge technologies that ensure uninterrupted delivery of services to our customers.”

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Dar Al Arkan has announced the topping out of its Urban Oasis residential tower. The $218mn, 34-storey project is being developed in partnership with Missoni and is located near the Dubai Water Canal.

The structural completion milestone was celebrated by Dar Al Arkan chairman Yousef Al Shelash, who visited the site and took part in the topping out ceremony, the developer noted.

Urban Oasis is Dar Al Arkan’s first project in the UAE, and the region’s first ever bespoke Missoni-inspired living spaces designed by the fashion brand’s MissoniHome line, which is dedicated to interiors, decor, and furnishings, said a statement.

Situated on the Dubai Water Canal, it is in close proximity to Downtown Dubai’s top attractions such as Burj Khalifa and The Dubai Mall, and many other premium lifestyle locations. The project’s homes offer spectacular and uninterrupted views of the Dubai Water Canal, making the tower a true urban oasis within the bustling city. It consists of high-end one, two and three-bedroom apartments and four-bedroom penthouses with luxury interiors from MissoniHome, stated the Saudi developer.

The tower has been 80% sold to a diverse range of homeowners and investors from all over the world representing over 45 nationalities. It is due for completion by the end of next year.

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Works have been completed on the 14,000sqm Al Futtaim Auto Park in Al Ain, according to design-build specialist Amana. The Auto Park is said to feature a complete showroom and workshop facility for servicing motor vehicles. It also boasts a solar photovoltaic (PV) system that can generate 800MWh.

The project is the first automotive facility to operate all brands under one roof, as well as being the only multistory automotive facility in Al Ain, which can hold almost 70 new and used cars on both floors. Its end-to-end offering includes commercial vehicles, in addition to passenger cars, new and used, for sale, leasing, and renting, a statement from Amana noted.

Its 487.9kWp solar PV plan is expected to generate 800MWh of energy, whilst offsetting 334 metric tons of carbon dioxide during its first year of operation.

“The Al Futtaim Auto Park in Al Ain has become a signifier of a greener, smarter future for the nation. Building it with a solar PV system, we combined significant energy production with seamless architectural integration. Thus the project opens up new prospects for the deployment of renewable energy. Solar photovoltaic systems are a critical solution to help decarbonise the construction sector, responsible for more than one third of global annual greenhouse gas emissions,” said Amana CEO Jihad Bsaibes.

Its strong and diversified portfolio of capabilities, beyond standard industrial contracting, enabled a seamless and successful installation, even as construction of the building was ongoing, explained Bsaibes.

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Source: ME Construction News

LONGi has been awarded a contract to supply 406MW of its Hi-MO 5 bifacial modules to the SepcoIII Electric Power Construction Company for the development of Saudi Arabia’s Red Sea Project. Included in the package is what is said to be the world’s largest battery storage facility of 1000MWh, which will allow the destination to remain completely off-grid and powered by renewables day and night.

According to a statement from the solar technology company, the project will be completely powered by renewable energy on a scale not previously achieved anywhere in the world, with energy to be generated via solar panels and wind turbines to meet initial demand of 210MW, with further expansion planned.

The Red Sea Development Company (TRSDC) awarded its highest-value contract to date to a consortium led by Acwa Power to design, build, operate and transfer the project’s utilities infrastructure, generating up to 650,000MWh of CO2 free power. The CO2 emissions saved are the equivalent of some half a million tons annually, the statement said.

“The Red Sea Project is a vital undertaking as part of Saudi Vision 2030 and the completion of the project will lead to a new way of life in the Middle East. LONGi will spare no effort to contribute to the region’s energy transformation. As a world-leading solar technology company, LONGi will continue to contribute to global energy transformation together with partners from all sectors,” said group vice president Dennis She.

The agreement also covers the construction of three seawater reverse osmosis (SWRO) plants, designed to provide clean drinking water, a solid waste management center and an innovative sewage treatment plant (STP) that is expected to allow waste to be managed in a way that enhances the environment, by creating new wetland habitats and supplementing the venue with irrigation water for landscaping, the firm said.

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Source: ME Construction News

ACCIONA, through a collaboration of its R&D+i Department with its Roads and Bridges specialised business unit, has announced the development of new geometric control software for the manufacturing of concrete segments used for bridges constructed using the Match Cast method.

In a statement, the Spanish multinational construction giant said that the methodology involves manufacturing concrete segments using the previous segment as a mould and a geometric reference to ensure a perfect fit when the segments are assembled.

The SeCAC software then guides the user during the process to geometrically define the segments and their subsequent manufacturing in the factory, recalculating new dimensional values for each piece, enabling potential variations that may have occurred during the concreting phase of the previous segment to be corrected.

The company launched the development of this new software after constructing the bridge over the Roskilde Fjord in Denmark and the viaduct for the Dubai Metro 2020 project. Both projects reaffirmed the need for a tool that can centralise and automate these processes, which to date has been performed by external software and tools.

This new software will enable ACCIONA to be more competitive and self-sufficient when constructing bridges using this method, which will generate significant cost savings as well as reducing construction times and minimising the social impact among local communities, the statement said.

It added that the company is currently using the software on a project to construct Section 2 of the Malolos-Clark railway line in the Philippines. An estimated 6,186 manufactured segments will be required for this project, it added.

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Source: ME Construction News

Egis, the France-based international company active in the consulting, construction engineering and mobility service sectors, has announced a major expansion in its capabilities in the Middle East, with the acquisition of the Waagner Biro Bridge Services group of companies.

In a statement, Egis said that the strategic buy includes Waagner Biro Bridge Gulf and Waagner Biro Bridge Fabrication in Dubai., Waagner Biro Bridge Contracting and General Maintenance in Abu Dhabi and Waagner Biro Bridge Qatar. The group has been in operation in the GCC for more than 50 years, providing government and private companies with engineering, operation and maintenance services.

Announcing the strategic move, Egis described the acquisition as a ‘win-win’ for the companies involved. On one hand, Egis will broaden its engineering services to include the design, engineering and construction of steel bridges and structures, marine and coastal engineering projects and the maintenance and operation of wastewater treatment facilities and pumping stations, while on the other hand, Egis and Waagner Biro Bridge Services will share the capacity to provide comprehensive facility management services through a distinct range of corrective, preventative and annual maintenance services for bridges, road infrastructure and public utilities.

Renaud Beziade, Global Executive Director PPP, Operations and Smart Mobility at Egis, said: “This acquisition contributes significantly to Egis’ strategic objective of expanding its operations and maintenance expertise globally.”

“It will give us, for this field, a solid foothold in one of the most dynamic regions, including countries with highest quality standards and a strong appetite for innovation. This acquisition also reflects Egis’ commitment to support its clients in the Middle East with a broader range of engineering, operations and maintenance services,” he added.

Amongst the projects Waagner Biro has been involved in are: the operation and maintenance of the Floating and Maktoum Bridge in Dubai, the routine maintenance of road structures in Dubai, coastal protection works in Dubai, the construction of Yas Marina Hotel Access bridge in Abu Dhabi, the operation and maintenance of several wastewater treatment plants and pumping stations in Qatar.

One of the first and most iconic projects that Waagner Biro Bridge Services was involved in was back in 1967 – the construction of the iconic Al Maqta Bridge in Abu Dhabi, the statement added.

Waagner Biro Bridge Services CEO Ferdinand Brand said: “We share with Egis the genuine commitment of partnering with our clients and delivering consistently world-class services and cutting-edge projects. Together we will develop even more creative and comprehensive solutions that will set new standards of excellence in a multitude of sectors.”

“We are very excited about joining Egis and the future opportunities that it will offer to all of us and our clients,” he added.

The acquisition of Waagner Biro Bridge Services comes after Egis had previously acquired four companies with presence in the Middle East.

These include ‘Inhabit’, an engineering and consulting firm specialising in design services, ‘10 design’, an architecture firm, ‘Projacs’, a consulting firm specialising in project management and construction supervision for buildings, and most recently announced, the agreement to acquire ‘WME’, a multi-disciplinary engineering consultancy.

This new acquisition completes Egis’ portfolio in the region by adding infrastructure maintenance and operations. It also brings support to Egis’ expertise in project structuring (PPP), it stated.

Alaa Abusiam, Egis Group CEO in the Middle East, pointed out that Waagner Biro Bridge Services’ differentiated skillset and deep experience in the Middle East add depth to Egis’s existing capabilities.

“Combined, we will draw on our team’s vast knowledge to provide maintenance and infrastructure engineering solutions for our clients that serve the need of the local communities. We look forward to welcoming all our new colleagues to Egis,” he added.

For Egis, PwC Middle East acted as financial advisor and Clyde & Co as legal advisor, while for Waagner Biro Bridge Services shareholders, deNovo Corporate Advisors acted as financial advisor and DLA Piper as legal advisor.

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Source: ME Construction News

To what extent are the rising prices of commodities and essential building materials impacting the construction sector? Ben Jackson, head of Project & Development Services MEA for leading real estate market-maker JLL, has just published his new insights, tracking these all-important inflation rates. He asks very pertinent questions about their consequences for real estate, project construction and development in the MENA region.

We see, firstly, that a cluster of factors are currently coming together, with an all-too-apparent ‘perfect storm’ pushing up the rate of inflation to its fastest for more than a decade. With the Economist magazine recently citing inflation as one of the three major threats to the global economy in 2022, smart contractors need to be aware of the impact and adjust their financial, contractual and delivery mechanisms accordingly.

Key trends and indicators include –

• Current global events are leading to a ‘compound’ jump in energy and commodity prices (which were already rising steeply)
• Soaring energy prices: in March, the price of WTI oil crossed $100 per barrel for the first time since 2014
• Supplies chain disruptions and constraints in the labour market have never been so important, as economies bounce back from the Pandemic and rapidly step up demand
• Oxford Economics has recently raised its forecast for global inflation to 5.2% for 2022, a notable uplift from its previous projection (4.3%).

These factors are exacerbated as the Middle East region continues to see greater rates of urbanisation resulting in unprecedented levels of demand for affordable housing, social, transportation and utility infrastructure. All of which is put in stark relief by the World Economic Forum (WEF), which estimates this ‘mega trend’ will increase populations of cities around the world by approximately 200,000 people every day.

“We are currently experiencing something of a ‘perfect storm’ as a combination of reasons push up the rate of inflation to its fastest in more than a decade. Broadly, rising global demand as economies bounce back following the COVID-19 pandemic, supply chain disruptions, constraints in the labour market and soaring energy prices (in March, the price of WTI oil crossed $100 per barrel for the first time since 2014) are resulting in shortages and pushing up prices,” says Ben Jackson. “Moreover, the western economic sanctions on Russia’s economy are exerting supply-side pressures that are likely to result in further price increases in the coming months.”

To view Ben Jackson’s comments in full, please download here – https://www.jll-mena.com/en/views/impact-of-price-inflation-on-middle-easts-construction-sector

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Source: ME Construction News

Saudi Arabia has announced the launch of the King Salman Project, which will encompass the largest expansion undertaken in the history of Quba Mosque, Islam’s first mosque, and the development of its surrounding areas.

According to a report by SPA, the project, named after the Saudi King, will see the total area of the Quba Mosque expanded to 50,000sqm, approximately ten times its current area. Once completed, it will be able to accommodate 66,000 worshippers.

It added that this would be the largest expansion in the mosque’s history, since its establishment in the first year of the Prophet’s Hijra.

HRH Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Deputy Prime Minister and Chairman of the Council of Economic and Development Affairs launched the project and said that it is aimed at documenting the historical characteristics of Quba Centre, preserving its urban and old-fashioned architecture as well as protecting and preserving the historical monuments located near the mosque, it added.

“This project comes to achieve the goals of the Kingdom’s Vision 2030 within the two programs of serving pilgrims and the quality of life, as it will raise the area of ​​the mosque from 5,035sqm to 50,000sqm and the project as well as the efficiency of this historical Islamic landmark with the aim of enriching its visitor’s experience,” he said as per the report.

The project also includes the development and revival of historical sites to include 57 sites covering many wells, farms and orchards and linking three of the Prophet’s paths, it added.

The project is based on linking the current Quba Mosque with shaded courtyards from four sides, functionally and visually connected to the independent prayer halls that are not structurally attached to the current mosque building, while providing all the necessary services belonging to the mosque.

The efficiency of the existing mosque building will be raised with the accompanying services system, the improvement of the road network and the surrounding infrastructure to raise the efficiency of gathering, ease of access to the mosque, find radical solutions to overcrowding and enhance the security and safety of worshipers, in addition to developing and reviving a number of sites and prophetic monuments within the mosque and its squares.

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Source: ME Construction News

Khazaen Economic City has said that it has signed an agreement with Al Janabi International investment company to set up a factory that will produce cement products.

According to a report by Oman News Agency, the project will cost $5.17 million for the first phase be set up. It will be developed on a total area of 5,000sqm.

In addition, Khazaen Economic City said that it has signed an agreement with Moayyad Omair investment company for the establishment of a factory for steel industries. This project will cost $3.89 million for the first phase and will be built on a total area of 7,500sqm.

The project aims to target the local and regional market and will produce 4,000 tonnes of steel annually.

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Source: ME Construction News