Projects from the Onset 27 th August 2019 making the difference - PowerPoint PPT Presentation

Creating Commercially Viable Projects from the Onset 27 th August 2019 making the difference

Health & safety moment MML Turner & Townsend

We are a global consultancy Turner & Townsend is an independent professional services company specialising in programme management, project management, cost and commercial management and advisory across the real estate, infrastructure and natural resources sectors. With 108 offices in 45 countries , we draw on our extensive global and industry experience to manage risk while maximising value and performance during the construction and operation of our clients’ assets. 3 MML Turner & Townsend

Our Local Business Nairobi based MML Turner & Townsend has for the past 32 years built up a reputation as the largest and most respected project and cost management consultancy in East Africa. 4 MML Turner & Townsend Kisumu - Kenya Focus Group

We work across 8 regions UK $323.6m North America Asia Revenue $117.3m 2,554 $35.2 Revenue People Revenue 649 520 People People Europe Australia and $39.0m New Zealand Revenue Latin America 299 $70.7m $13.8m People Revenue Middle East Revenue 468 $60.5m 104 People Africa Revenue People $18.6m 346 Revenue People 269 People 5 MML Turner & Townsend

As a partnership we act as one business globally 45 Countries 110 Europe Milan Amsterdam Moscow Offices Atyrau Munich Basel Paris Berlin Rome Asia Dublin St Petersburg Bangalore Frankfurt Stavanger Beijing Hamburg Stockholm Ho Chi Minh City Istanbul UK Vienna Hong Kong Krakow Aberdeen Warsaw Jakarta Madrid Bath Zurich Kuala Lumpur Belfast North America Macau Birmingham Calgary Manila Bristol Chicago Mumbai Cambridge Denver New Delhi Cardiff Edmonton Seoul Edinburgh Fort Worth Shanghai Glasgow Houston Shenzhen Leeds Los Angeles Middle East Singapore London Minneapolis Abu Dhabi Tianjin Manchester Mountain View Dammam Tokyo Newcastle Nashville Doha Australia and Nottingham New York Dubai New Zealand Reading Ottawa Muscat Adelaide Sheffield Phoenix Riyadh Auckland Teesside San Francisco Latin Brisbane Seattle America Cairns Tampa Africa Buenos Aires Canberra Toronto Bogotá Cape Town Christchurch Vancouver Lima Dar es Salaam Darwin Washington DC Mexico City Durban Gold Coast Rio de Janeiro Gaborone Melbourne Harare Santiago Nadi São Paulo Johannesburg Perth Kampala Sydney Maputo Townsville Nairobi 6 MML Turner & Townsend

We deliver the following services across sectors in Africa 7 MML Turner & Townsend

International construction market survey 2019 making the difference Rewel Kariuki , Director - Cost Management

An introduction to ICMS Overview: The annual survey of 64 markets revealing the cost of building around the world. Drawing on information from over £655bn of global real estate investment Audience relevance: For those considering real estate construction expenditure – the survey helps to identify the key global trends and enables informed investment decisions to drive the best return. Companies and individuals who benefit from using the data include: Companies investing in several locations  Multinationals  Investor developers  26,000+ Architects  downloads since the Takeaway: launch With our insight and data on the markets we operate we can advise on the right tactics to deploy to manage risks, control costs and capitalise on opportunities in the set-up and delivery of major projects and programmes. MML Turner & Townsend

The data includes . . . 1. Kenya 2. Rwanda 3. South Africa 4. Tanzania 5. Uganda 6. Zimbabwe $655bn 9 64 6 Data comes from over Data included Data included $655Bn of from 64 Different build from 6 global real markets categories markets in estate around the Africa projects/ world investments MML Turner & Townsend

The data comes from our involvement on projects in East Africa Industrial Commercial Hotels Safari Park Hotel Garden City Business park   Mitchel Cotts Cargo • Mount Kenya Safari The Junction Mall   Handling facility at JKIA Club Barclays Diani Shopping  Unilever Omo Factory • The Sarova Stanley Centre  Nairobi Hotel Village Market Expansion  KBL Bottling Deport in Nyeri • Southern Sun phase II  Mayfair Hotel Tissue Culture and • Capital Centre Mall  Windsor Golf  molecular laboratory for Phased refurbishment of over  &Country Club 100 Branches for KCB Bank coffee Research Foundation Sweet waters tented  Refurbishment of Caltex  Swiss sport Air Cargo • camp in Nanyuki Petrol Stations handling facility at JKIA Bidco warehouse and plant • Residential Hospitals Commercial – Fit -out Riverbank by Centum  Agha Khan Hospital, Nairobi  Sage  Pearl Marina, Uganda  Aga Khan Hospital, Uganda  Philips  Mae Ridge Housing  Gertrude's Children's Hospital  Jaguar Land Rover  Riverside Park  BMW  ISK staff Housing  CDC offices  MML Turner & Townsend

Global key highlights MML Turner & Townsend

What does the ICMS say about the East Africa real estate market? The current tendering condition in East Africa is lukewarm, but 1 looking to heat up in the future in Rwanda, Tanzania and Uganda. Kenya’s current tendering situation looks to remain the same 2 for the near future. MML Turner & Townsend

. . . continued 3 Construction cost inflation should remain consistent across East Africa this year Nairobi is the 4 th least expensive place 4 5 Ave. cost of six building types in US Dollars to build across the 64 markets surveyed 1. High-rise apartments 2. Office blocks 3. Large warehouse distribution centres 4. General hospitals 5. Primary and secondary schools 6. Shopping centres and malls MML Turner & Townsend

. . . continued 7 Preliminaries can vary quite widely within The survey highlights the massive disparity a region, depending on the type and 6 between labour costs. East Africa have the location of the construction. lowest labour costs worldwide. Because they take account of the setting up costs for a construction job, in regions where there is a high degree of complexity preliminaries tend to be higher. MML Turner & Townsend

. . . continued 8 Kampala and Kigali , while considered only lukewarm are still reporting skills shortages. This raises the question of where labour will come from as and when these markets heat up from lukewarm to hot . Nairobi and Dar es Salaam are in balance. MML Turner & Townsend

The East Africa market in summary Biggest growth sectors are residential and social housing ; Government developing infrastructure to support a competitive private sector industrial manufacturing and distribution ; power and utilities Over supply of high-priced housing and commercial Rwanda has three initiatives for growth – technology, foreign developments. investment and tourism. Made in Rwanda policy launched to reduce its trade deficit Suppressed investment due to cap on interest rates and banks not lending as much. and upscale local manufacturing Construction costs set to rise 3% due to rising land and import costs Growth in residential and commercial property projects Growth in commercial offices, large mixed-use developments and private housing . Demand for affordable housing is at three million. Commitment by government to build 200, 000 annually. Economy likely to grow with increasing investment in infrastructure. Boost in tourism expected after expansion of the Mwanza aiport on eastern shores of Lake Victoria. East Africa Crude Oil pipeline will bring opportunities Construction costs set to rise 3% due to rising land and import costs Risk of economic uncertainty and increased costs may One of China’s Belt and Road destinations. follow 2021 elections MML Turner & Townsend

Data available in the ICMS MML Turner & Townsend

Terms and references Building costs per m 2 Exclusions from buildings costs per m 2 Labour Costs MML Turner & Townsend

ICMS App MML Turner & Townsend

Different methods to use the data Single currency method Purchasing Power Parity Location Factors Turner & Townsend