Construction Business News ME - June 2020

JUNE 2020

THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS

REDEFINING

REAL ESTATE

Atif Rahman

Haleema Al Owais

Francis Alfred

P32// A LOOK AT THE PROGRESS ON THE DUTCH PAVILION FOR EXPO

CEO Wissam Younane wissam@bncpublishing.net Director

// CONTENTS

Rabih Najm rabih@bncpublishing.net

JUNE 2020 // ISSUE #64

Group Publishing Director Joaquim D'Costa

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jo@bncpublishing.net +971 50 440 2706

Business Development Director Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818

Deputy Editor Kasun Illankoon kasun@bncpublishing.net

14 22 26 32 34 36 38

NEWS DIGITAL COVER STORY PROJECT EXPO TALKING POINT INTERVIEW

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Art Director Aaron Sutton aaron@bncpublishing.net Marketing Executive Aaron Sinanbam aj@bncpublishing.net

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CONSTRUCTION BUSINESS NEWS ME // JUNE 2020 //

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Your business continuity is our top priority.

Our initiatives and remote solutions have got you covered in all situations. du.ae/wegotyourb

// EDITOR'S NOTE

EDITOR’S NOTE COVID-19 EFFECT ON REAL ESTATE According to Property Monitor, Dubai property prices experienced what most would consider an unexpected uptick in April 2020, with prices increasing 0.49% from a month ago. Prices in April stood at AED 866 per sq ft, marginally higher than the AED 862 per sq ft recorded in March. As anticipated, the volume of closed transactions in April was significantly lower than last month as mobility restrictions impacted financing and purchase decisions. A total of 1,825 transactions were recorded during the month, down 47% from March.

Furthermore the report states, this increase is likely artificial and temporary in nature as closing resale deals in the absence of physical viewings is a greater

challenge than for off plan. Now that the mobility restrictions have been eased and online modes of transfer for both off plan and resale properties have become available, a more normal market mix should result. The outlook for prices will be closely watched by brokers, developers, lenders and surveyors alike for any evidence of the renegotiation of existing deals and the inevitable activities of short term bargain hunters.

Any of these short term price movements would not necessarily point to a sustained, more rapid or longer term softening of prices. It is too soon to judge the longer term impacts of lockdown and the effectiveness of the mitigation measures being adopted around the globe.

ON THE WEB Keep up to date with all the latest news, features and much more on our website. www.cbnme.com

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// CONSTRUCTION BUSINESS NEWS ME // JUNE 2020

Kasun Illankoon Deputy Editor kasun@bncpublishing.net

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INVESTMENTS

QIDDIYA SIGNS 5-YEAR AGREEMENT WITH DETASAD AS IT STRATEGIC PARTNER

Qiddiya Investment Company (QIC) announced the signing of a five-year framework agreement with Detecon Al Saudia Co. Ltd. (DETASAD) via a virtual signing ceremony.

The scope of the agreement provides for a fully integrated system delivered to Qiddiya by DETASAD that includes all requirements and operation of the company’s IT infrastructure, managing ICT hardware and providing hybrid cloud, connectivity and manpower for all Qiddya’s resources.

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“As Qiddiya is set to become the Kingdom’s Capital of Entertainment, Sports and the Arts, it is important that we have the right strategic partner that can provide IT solutions to support our rapid growth and development and we see this in DETASAD. We are happy to be entering into this long-term agreement, especially because it’s an established Saudi company with access to the latest global IT know-how,” commented Michael Reininger, CEO of QIC. Present at the virtual sign-

// CONSTRUCTION BUSINESS NEWS ME // JUNE 2020

ing ceremony was Mike Reininger, Abdulaziz Al Qahtani, IT Director of QIC, Felix Wass, CEO of DETASAD. Speaking on the signing Felix Wass, CEO of DETASAD said, “Over the last 38 years, DETASAD has many cloud, connectivity, deployment, operation & maintenance contracts for leading financial institutions, ministries and other governmental organizations across Saudi Arabia. As a Gigaproject and a major tourist destination, this strategic

partnership with Qiddiya is a great opportunity for us to contribute to the development and evolution of the Kingdom’s entertainment sector within the IT field.

DETASAD is fully committed to the Saudi Vision 2030 and we are excited to support Qiddiya through this journey to become a global tourism hub and destination”.

Construction is continuing on site at Qiddiya and it is expected that the Giga-project will announce several new partnerships as the year progresses.

REAL ESTATE

MUBADALA ANNOUNCES RENT DEFERMENT FOR ADGM SQUARE TENANTS

The Real Estate and Infrastructure arm of Mubadala Investment Company, the Abu Dhabibased sovereign investor have announced the rent deferment plans for ADGM Square. This is part of Mubadala’s ‘We Are Dedicated’ campaign and aims to support ADGM Square commercial tenants currently leasing office spaces in the four towers, Al Khatem, Al Sila, Al Maqam, Al Sarab.

The campaign launched in April in response to the economic impact brought on by the COVID-19 virus outbreak in the UAE. WWW.CBNME.COM

This initiative is effective from April to the end of June 2020. Tenants will be offered a deferment of rent and service charges for a three month period, with an option to defer their Quarter 2 or Quarter 3 payments.

As an alternative to a deferment of rent and service charges, tenants will also be offered the ability to make their payments on a monthly basis. This is in line with Mubadala’s earlier investment of AED 420 million in economic relief for tenants, out of which AED 70 million

has been allocated to several relief measures for commercial tenants.

This initiative complements the measures launched by Abu Dhabi Global Market, the governing body of Al Maryah Island, to support businesses operating on the island and within the financial free zone.

Ali Eid Al Mheiri, Executive Director of Real Estate & Infrastructure, Mubadala stated, “As a responsible global investor, we are committed to ensuring the health and safety of our

employees, partners and the communities in which we operate. We stand sideby-side the UAE’s leadership and in solidarity with the international community to support the fight against COVID-19. Our integrated response harnesses the reach of our portfolio both at home and abroad and aims to support businesses, individuals and communities in this global effort. I am confident that by working together we can emerge stronger than ever before.”

CONSTRUCTION BUSINESS NEWS ME // JUNE 2020 //

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// NEWS

ELEVATORS

THYSSENKRUPP ELEVATOR COMPLETES CONSTRUCTION ON CORE OF THE HIGHEST TEST TOWER IN THE WESTERN HEMISPHERE

Slip-form construction of thyssenkrupp Elevator’s Innovation and Qualification Center (IQC) and elevator test tower has been recently completed. The IQC is part of thyssenkrupp elevator’s new North American headquarters at The Battery Atlanta and, at 420 feet tall, will be the tallest elevator test tower in the Western Hemisphere.

The IQC and adjacent Corporate Headquarters (CHQ) are on schedule for completion in 2021 with final move-in by early 2022. Both the IQC 16

and CHQ are being built on property owned by the Braves Development Company.

Employees moved into the Business Headquarters (BHQ) location in nearby Pennant Park in March 2019.

Slip-form construction involves a moving formwork system being set down on the foundation with concrete being placed on a continuous basis. Often referred to as the core or skeleton of a building, the slip-form construction process is relatively rare in the U.S. but is popu-

// CONSTRUCTION BUSINESS NEWS ME // JUNE 2020

lar in Europe – this process was used for thyssenkrupp’s 800-foot-tall elevator test tower in Rottweil, Germany.

Construction of thyssenkrupp Elevator’s new test tower, including the slipform construction, is being handled by its general contractor, Brasfield & Gorrie. Subcontractor Gleitbau – Salzburg provided the design, engineering and oversight over the slip-form construction process.

To showcase the elevators at the test tower, the

IQC will feature a complete glass exterior façade facing The Battery Atlanta, allowing millions of visitors annually to view operations that are normally hidden behind concrete walls in rural locations. In addition to the elevator test tower, the IQC will also feature event and meeting spaces located at the top of the building – providing breathtaking views of the region – as well as a digital showroom, software lab, engineering offices and training facilities.

ENTERTAINMENT

ARADA TO LAUNCH SHARJAH’S FIRST DRIVE-IN CINEMA EXPERIENCE WITH MOVIE NIGHTS AT ALJADA

Arada is preparing to open a new drive-in cinema at Madar at Aljada, the recently opened family entertainment destination in Sharjah. With a scheduled opening date of Wednesday, 1 July, Movie Nights at Aljada will showcase a wide range of films throughout the summer period and beyond, in a fun and secure environment.

Screenings at Movie Nights at Aljada will take place on a daily basis from 8pm and will be free to enter on a first come, first served basis.

Visitors to the permanent cinema, which has a capacity of 150 vehicles, will be allocated specific parking spaces, depending on the size of their car, and will be able to access the sound of the movie via FM radio.

Visitors will also be able to WWW.CBNME.COM

order directly from Zad at Aljada, the new food district featuring 17 different types of cuisine located only a few steps away from the cinema, from the comfort of their car.

Meals will then be delivered to cars in a contactless and safe manner.

HE Sheikh Sultan bin Ahmed Al Qasimi, Chairman of Arada, said: “Movie Nights at Aljada is a significant addition to the list of attractions on offer at Madar at Aljada, and it is also our way of thanking the Sharjah community for its strength and resilience during these exceptionally challenging times. We look forward to welcoming guests back to Aljada and providing them with a safe form of entertainment.”

CONTRACTS

FLUOR CORPORATION AWARDED PROJECT MANAGEMENT CONSULTANT CONTRACT FOR AGIC’S PROPANE COMPLEX IN KSA Fluor Corporation announced that it was named project management consultant for Advanced Global Investment Company’s (AGIC) new propane dehydrogenation, polypropylene and utilities and offsites complex in Jubail Industrial City, Saudi Arabia.

Fluor will perform project management consultant services for the front-end engineering design, detailed engineering, procurement and construction phases of the project. Fluor booked its portion of the undisclosed contract value in the first quarter of 2020.

“Fluor has supported clients and safely executed projects in Saudi Arabia for more than 70 years,” said Mark Fields, group president

of Fluor’s Energy & Chemicals business. “Our legacy of execution excellence continues with this most recent award from AGIC. We look forward to helping AGIC and the Kingdom of Saudi Arabia meet the world’s growing demand for polymers and support their efforts to diversify its economy and also become one of the world’s leading global producers of polypropylene.”

Once complete, the complex will manufacture 843,000 tons-per-year of propylene and 800,000 tons-peryear of polypropylene that will be used for the production of specialty polymers for the face masks, automotive, pipes, food packaging and textiles industries.

CONSTRUCTION BUSINESS NEWS ME // JUNE 2020 //

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// NEWS

PROJECTS

MIXC MARKET HALL IN SHENZHEN BY 10 DESIGN IS ANTICIPATED TO COMPLETE BY Q3 2022

Sungang MixC Market Hall, China Resources’ new mixeduse development is under construction in Shenzhen, China with anticipated completion by Q3 2022. Located on a former industrial zone, this retail-gastronomy destination will provide an immersive gastronomic experience under one roof.

10 DESIGN, Chief Operating Officer, Miriam Auyeung, commented: “The site used to accommodate a warehouse within the old industrial district of Sungang and will soon be converted 18

into a new CBD. MixC Market Hall is aimed to create a lifestyle complex around food and dining. The complex will mark an important milestone for the ongoing transformation of Sungang, acting as a catalyst to drive urban regeneration in the area.”

MixC Market Hall will accommodate 78,890sqm of retail and F&B dining space, with two office towers above providing 102,320sqm of workspace.

As part of the regeneration of the district, the overall

// CONSTRUCTION BUSINESS NEWS ME // JUNE 2020

masterplan will also include residential and serviced apartment towers, resettlement housing, and public amenities, providing a holistic redevelopment.

Jointly led by two design partners, Ted Givens and Chin Yong Ng, the concept for this new development is to break away from the conventional shopping mall design and instead draw inspiration from a more traditional market square, creating a central meeting place for public enjoyment. This resulted with a series of

spaces created at different scales all interconnected.

The frontage of MixC Market Hall is marked by a stainless steel sculptural canopy which leads to a pedestrianised retail street, creating a new and dynamic boulevard for shoppers and diners to enjoy. The retail street is punctuated with the market hall entrance – the jewel of the landmark. It is animated by three floating box-shaped structures, the design of which is inspired by food truck containers.

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REAL ESTATE

ABU DHABI REAL ESTATE TRANSACTIONS IN APRIL INCREASED BY 34% COMPARED TO THE SAME PERIOD LAST YEAR

Statistics released by the Department of Municipalities and Transport today revealed that the value of real estate transactions in Abu Dhabi has been increased by 34% to reach AED 6.3 billion by the end of last April, through 2617 real estate deals, compared to AED 4.6 billion through 1840 deals during the same period last year.

The Department’s data indicated that mortgages acquired 60% of the total real estate transactions in April 2020, it increased by 100% during April 2020 compared to the same period in 2019 up to AED 3.8 billion, which 20

was made through (1170) mortgage transactions, with mortgages worth AED 1.9 billion, through (598) mortgage transactions.

Statistics of the Department of Municipalities and Transport also showed that the value of the of buying and selling operations in April 2020 reached about AED 2.5 billion, which was made through (1447) transactions, compared to AED 2.8 billion during the same period last year, through (1242) transactions.

H.E. Dr. Adeeb Alafeefi, Managing Director of the real estate sector in the

// CONSTRUCTION BUSINESS NEWS ME // JUNE 2020

Department of Municipalities and Transport, said: “Based on the directives of the wise leadership to support the business sectors during these exceptional circumstances, Abu Dhabi real estate market has maintained its vitality, position and excellence despite these unprecedented repercussions caused by the novel coronavirus (Covid-19) on the global economy and its repercussions on real estate markets around the world. ” His Excellency added: “The incentive plans launched by the UAE government and the economic

support plan of the central bank along with the economic incentives package launched by of Abu Dhabi Executive Council, according to which the Department of Municipalities and Transport has exempted individuals and companies from 34 of real estate registration fees until end of this year 2020, all contributed to providing sufficient flexibility and helping the real estate market in Abu Dhabi to respond to the current circumstances and continue its growth and maintain the momentum of its transactions.”

INFRASTRUCTURE

DUBAI SILICON OASIS AUTHORITY APPOINTS EJADAH FOR INFRASTRUCTURE MAINTENANCE AT HI-TECH PARK Dubai Silicon Oasis Authority (DSOA), the regulatory body for Dubai Silicon Oasis (DSO), today announced that Ejadah, a leading asset management company in Dubai, has been contracted to manage all infrastructure maintenance works across the integrated community.

Ejadah’s services include the maintenance and repair of DSO’s sewerage network, irrigation network, storm network, and their respective pumping stations, as well as the fountains and WWW.CBNME.COM

water features at its lakes and street lighting. Public park maintenance and open area infrastructure is also part of the scope.

Speaking on the appointment, Eng. Khalil Shalan, Senior Vice President – Operations & Facility at DSOA, said: “DSOA is committed to maintaining a state-ofthe-art community that offers its residents and visitors an enhanced quality of life.

As part of this priority, we are keen to offer our community members a clean,

aesthetically appealing, and seamlessly connected environment. This includes all elements of our infrastructure – from civil works to landscaping.

He added: “Given Ejadah’s consistent track record of excellence in providing a comprehensive range of worldclass and innovative facilities management and community service solutions, we are confident in their ability to carry out the required work in a professional manner that best suits DSO’s advanced in-

frastructure.”

For his part, Tarek Nizameddin Senior Executive Director at Ejadah, said: “This contract follows several similar high-profile ones that Ejadah has managed to secure across the UAE, and is well-aligned with our strategic expansion plans for the year 2020. We have achieved remarkable growth over the past few years, which has positioned us as an industryleading asset management company in the UAE and the wider region.”

CONSTRUCTION BUSINESS NEWS ME // JUNE 2020 //

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// DIGITAL

ALEC, DRIVEN

BY INNOVATION Kasun Illankoon explores how UAE based contractor, ALEC, have utilized technology and innovation to elevate themselves as one of the leading contractors in the region The COVID-19 pandemic has been impacting construction and engineering projects worldwide in numerous ways, and many projects have been stopped or delayed as a result.

However, UAE-based contractor, ALEC has seen a different result thanks to their digital transformation, which began well before the COVID-19 crisis. There seems to be a clear cor22

relation with companies that have a robust digital infrastructure being able to navigate through this. During 2019, ALEC implemented numerous/ several digital initiatives to become more efficient, sustainable and to transform the construction industry.

These implementations are providing maximum safety for employees as well as ensuring productivity and enhanced

// CONSTRUCTION BUSINESS NEWS ME // JUNE 2020

collaboration during the pandemic ALEC’s use of new technologies rapidly alters the landscape they currently operate in, and there will be significant benefits if leveraged correctly. While the modern technological landscape is exciting, its benefits cannot be fully realized without a culture of clear communication, transparency, and collaboration across the entire supply.

Striking the correct balance between initiatives in these areas allows ALEC to consistently review and assess their progress while fine-tuning their path to fulfilling the vision by utilizing information management and digitalization, modular and offsite construction, robotics and automation, and emerging technologies including 3D printing.

The best software enables users to set up automation rules, so that team members are automatically notified about changes that affect their tasks.

For example, if the plumbing contractor will not have their job completed WWW.CBNME.COM

until Friday due to a backordered part, the platform can automatically update the schedule based on this change.

The most enterprise-ready platforms can also send notifications to all team members affected by a change, so they can immediately change their plans.

They can also digitize many manual processes such as punch lists, change orders, and safety logs, and keep them in a single central location, so time isn’t wasted chasing down the latest information.

Minutes and hours wasted on a project can add up to days and weeks of

delays. Because often one portion of a project must be finished before the next one begins, progress often stops while people wait for information or approvals. By using a work execution platform to create automated alerts, collect digital signatures, and keep project documentation updated, companies automatically ensure their projects continue to move forward at all times. ALEC has implemented a new project management information system to streamline construction processes across the business. This will enable them to capture and consoli-

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// DIGITAL

date data to provide better decision making.

From a technological standpoint, many construction technologies are in their infancy and have rapid development cycles that make adoption on live projects challenging. Mature technologies from other industries are inflexible enough for construction projects, and adapting them to our changing environment is equally challenging.

ALEC’s proactive steps, though, have made technology and innovation a priority. Recently, ALEC signed a deal with CMiC, the innovation leader in ERP and field operations software for the construction industry in North America, to use its platform and software to run financials and field operations. CMiC’s Single Database Platform™ architecture, which delivers a single version of the truth to users across all functional areas, was the key advantage over alternative ERP software vendors. As the only ERP solution built specifically for construction, CMiC includes functionality designed 24

to support international best practices and collaboration.

Furthermore, ALEC has been utilizing data, analysis, and calculations as a basis for making decisions. By analyzing their operations and concentrating on low productive areas, they have seen improvement ranging from 10 % to 400 % as a result of some of the initiatives. Data collection & utilization is vital in modern construction.

ALEC’s innovative use of BIM on a large scale has introduced new processes and ways to design a project.

Architecture and design are iterative processes that have traditionally been manually intensive. Architects, structural engineers, and builders all need to view different pieces of information and use unusual design templates.

Different models must then be made to show clients. When any changes are made, care needs to be taken that all documentation is updated. A BIM database improves collaboration, it also provides a store of architectural and design data that can be used for 3D modeling and software simulations.

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These programs can be used for design and structural purposes, allowing for the creative deployment of new materials and design concepts. To fully utilize BIM to its fullest, the company has implemented a BIM training program to level the skills gaps on tools and processes.

To stay one step ahead, ALEC’s vision towards the future has seen them introduce smart and green power solutions to address new market trends by utilizing their subsidiary divisions such as ALEC Energy, which is a provider of financially sound green energy solutions, in addition to ALEC Modular which is intended to supply fully integrated modular units to ensure that they are ready for the future of construction.

Due to that, the number of innovation initiatives being implemented is on the rise year-on-year. ALEC continues to collaborate with external stakeholders, including the micro-environment suppliers and business partners, and they have contributed positively to their innovation initiatives.

// COVER STORY

REDEFINING

REAL ESTATE

CBNME spoke with Atif Rahman, Director and Partner at Danube Properties, Haleema Al Owais, CEO of Sultan Bin Ali Al Owais Real Estate, and Francis Alfred, Managing Director & CEO at Sobha Realty in detail about the impact COVID-19 has had on the real estate market

Atif Rahman

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Haleema Al Owais

Francis Alfred

EXPECTATIONS FOR 2020 ATIF RAHMAN: The market was sluggish worldwide; however, in UAE, we were bullish for the year 2020, especially with the prospect of Expo 2020.

We were all hoping that Expo’s impact was going to positively affect the overall economy and how things are done in Dubai. I was confident that Expo was going to be unique and have a tremendous effect on the economy.

It would have done wonders for the real estate industry due to the nature of the event. Expo Dubai would have acted as a gateway for buyers toward the MENA market. With Expo Dubai moved to 2021, I do expect things to fall back in line with what was expected this year.

FRANCIS ALFRED: We began 2020 on a positive note, including an increase in the number of real estate transactions year-on-year. We started 2020 by

announcing an AED 2.5 billion sales target, following the success achieved last year, when we surpassed our total sales target of AED 2 billion. On the back of these phenomenal results last year, we were confident that 2020 would help generate strong returns.

These targets stemmed from an optimistic trend witnessed across the real estate sector in Dubai. In fact, the total value of all transactions in Dubai in Q1 2020 was at approximately AED 21.6 billion, which was two per cent higher compared to the same period in 2019.

In 2019, Sobha Realty sold a total of 1,491 units, comprising a net area of 1.23 million sq. ft, with Creek Vistas emerging as the most popular project within the development, followed by Greens and Estates villas. The high uptake from investors in 2019 supported the launch of more projects within the masterplan during the year.

HALEEMA AL OWAIS: As Sultan Bin Ali Al Owais Real estate, coming from a heritage of real estate development where we build to rent out, our primary audience is predominantly made up of expats looking for long term rentals.

That surely does not mean that we are immune to the demand and supply dynamics of residential and commercial units coming into market supply this year. But on the other hand, the same report mentions an above-average increase of 5.64% in the city's population based on the country's economic and leisure offerings. This number is well in line with our on-ground experience and will only increase, considering the Expo2020 and other government initiatives. In essence, the demand and supply matrix can and will stay in balance if developers are intelligent with their planning.

Furthermore, every market and

OLIVZ Residence by Danube Properties

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// COVER STORY

metropolis has an appetite for different kinds and classes of projects. If the mix of developments between luxury/ high-end, mid-market and affordable housing is in sync with the population it is designed to cater, and the UAE's demand will always have the potential to match its supply if not exceeding it.

We are currently in the midst of introducing over 300 residential and 50 Commercial rental options across various parts of the UAE by mid-2020, which is a straightforward addition to the country's expected consumption potential in our understanding.

One project we have been focusing on launching in time for Expo 2020 is short term furnished units to supply those coming in for the first time to attend the Expo. As well as hitting a different market for clients who prefer a more temporary stay whether it's tourists, employees looking for a more lenient lease as well as ready amenities.

COVID-19'S IMPACT IN CURRENT PROJECTS FRANCIS ALRED: The real impact of COVID-19 became evident in the second quarter of 2020, as transactions began to drop as a result of the pandemic. These are extremely challenging times for all of us, and we are well aware of the current market condition.

At Sobha Realty, our singular focus remains the continuous development of Sobha Hartland, and all the projects within the master development, which is set for completion in 2025.

Despite the challenging times, Sobha Realty has instilled a number of measures to ensure the wellbeing and safety of its staff and maintained a steady pace in its construction activities, ensuring timely deliveries. With a reputation of offering the highest quality of residences and timely project deliveries, we are proud to have managed this phase with minimal disruptions to our construction operations 28

and we are on schedule to hand over a series of projects within the Sobha Hartland development.

The construction for Gardenia Villas Phase II and Hartland Greens Phase III are moving forward as per schedule and are 90% complete for timely handovers within the year. While our sales offices have been closed, in accordance with the directives of the UAE government, we remain accessible to potential customers through our online channels. We have conducted virtual reality tours, online video conferencing, and offered digital brochures and online transaction options to help buyers have a better and more seamless experience with us.

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HALEEMA AL OWAIS: We have two projects under development, and we intend to complete them as per plan.

Sure there have been challenges with reduced working hours and reduced mobility by some, but we intend to make up for that lost time in any way we can because if there is anything we have learned from COVID 19, it is to respect time as we don't have enough if it.

And besides stalled projects in a time like this serving as dead CAPEX on our balance sheet, which is not the best idea under any circumstances.

I consider ourselves to be in the business of necessity, and as long as there are habitats and roofs needed, all

Sobha - Creek Vistas Reserve

to the supply chain of materials there was impact on that front, due to the factories overseas being impacted.

There is only so much local manufacturing you can do in the UAE. We rely heavily on overseas import of goods, especially on the finishing parts of the project. That needs to be mitigated and needs to ensure that materials are being delivered to our sites on time.

Also, as we progress into this crisis, we need to consolidate the business, and as a developer, we need to reduce exposures on new projects and focus on delivering the ongoing projects. that the real estate industry needs to do it reboot itself to match its circumstances and keep moving.

ATIF RAHMAN: I foresee a couple of issues that would impact the market, and one of the critical things to combat in this crisis is accepting the reality of the situation. Two key challenges that every company would face are the cash flow and the supply chain, as these two factors could either delay or halt a particular project.

During the lockdown, all my sites were hyperactive; I had more than 6,000 people working on various construction sites and were not feeling the impact. Although, when it came WWW.CBNME.COM

A LOOK INTO BUYER BEHAVIOUR AS A RESULT OF COVID-19 HALEEMA AL OWAIS: I will presume buyers as renters based on what we do, and yes, I would most definitely agree, and we have seen a 40% increase in inquiries/demand for specific types of properties.

Traditionally, studios and smaller units are known to be highest in demand and the quickest to rent out, but most inquiries between March and April 2020 with us have been for bigger, groups specifically those with balconies.

The shift in tenant and rental seeker behavior is quite remarkable

and evident at the same time.

Lately, we have had a particular surge in families looking for villas with large outside areas and especially spacious apartments with balconies, to aid the socially distancing shift in everyone's lifestyle and increase in Stay at Home activities.

ATIF RAHMAN: The first reaction you would get is naturally is panic, and my advice to everyone who has invested or planning to invest is not to panic. It's a natural cycle that every economy is going to go through. In UAE especially, due to the size of the economy, the fantastic infrastructure for investors, and the regulations that were laid out for over a decade, will ensure the UAE will come out of this crisis stronger.

We have seen this before in 2008/2009, due to the worldwide recession and financial crisis, investors had written off the region, but the UAE was one of the first to bounce back from this economic crisis. The UAE government spending on our infrastructure never stopped due to the crisis and now with the type of catalyst developed by the government in terms of local indigenous developments when it comes to iconic projects will father add to the attractions of

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// COVER STORY

Sobha - Gardenia Villas Terrace

the UAE. You will see the UAE market trending upwards for sure. There will be temporary trends where people may consider changing their buying behavior from one property to another property. In the meantime, long term, we should be focusing on developing quality real estate and reinforcing the regulatory framework, and the consumer confidence will only continue to grow in UAE. FRANCIS ALFRED: We expect to witness a temporary decline in activity, with fewer number of buyers in the market and a vast majority of them taking a more cautious approach.

Over the past couple of months, with social distancing guidelines in place, the real estate sector has embraced digitization and created digitally enabled services for investors and end-users. Accessibility, sustainability, affordability, and quality services are some trends that are witnessing greater demand from the buyers.

We are also seeing consistently low interest rates being offered, with the mortgage gap reduced by 5 per cent for first time homebuyers and investors. We expect these sops to have a positive impact on the market.

RECONSIDERING DESIGNS OF FUTURE PROJECTS ATIF RAHMAN: When it comes to residential properties, I don't think there 30

is a phenomenal change in our homes as we continue to live in our conventional homes built over the last decade or so. In terms of common areas, we can incorporate useful health measures that have been implemented during this crisis. On the commercial side, there would be a phenomenal change, take, for example, the hospitality sector, you need to revisit how that sector’s real estate is looked at. We have to clearly distinguish between seasonal trends or temporary trends that may develop out of this crisis versus the more permanent changes that may occur as a result of this crisis. There will be changes in how the offices are looked at, and again I believe this is a balancing act, and it is too early to establish a formidable trend in terms of what changes we might have to make and deliver. We might have to wait a couple of quarters to understand how businesses are changing their necessities and requirements in terms of commercial real estate.

FRANCIS ALFRED: At Sobha Realty we have always raised the bar higher and set ourselves challenging goals in terms of the standard and quality of our products and the unfailing commitment to flawless craftsmanship.

We also believe that all crisis lead to greater transformation and already the COVID-19 pandemic has highlighted a greater demand for many design features, including Indoor recreation

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areas, less preference for open floor plan, spacious balcony/terraces and natural lighting, enhanced vertical transport to avoid queuing, integrated open usable spaces with amenities such as private pool and automation features such as contactless elevator button and door handles.

Buyers are also looking for workspace within home and community areas with restricted access, as well as outdoor spaces that are an extension of indoor spaces.

The real estate sector isn’t just about selling space but selling intuitive living places that answers the demands of the greater community and keeps individuals feeling secure, happy and safe.

HALEMA AL OWAIS: I recently wrote a short paper on Post Coronial Real Estate Landscape, and I particularly feel that Real estate companies have withstood the test of time in the past and we all know from experience that there is no reward in being a spectator in a time like this We all agree that the UAE government is playing its part, and now companies operating in the sector have to stay vigilant and be prepared for the new normal post-COVID-19 which will transform how people finance, operate and occupy real estate.

As we are discussing these issues in just a few weeks, homes have turned into a place where we also work from, study, workout at, and more People are likely to be mindful of these times and want homes suitable for all purposes, and everyone occupying them.

I was going through a survey by McKinsey where it said that consumers are experiencing a decrease in income and with reduced income follows the preference for affordable housing increases, but some people have been putting off investing in a home and have the savings to support it now.

Those people are likely to opt for housing options that offer excellent quality of life and amenities to support stay at home if they need to.

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// PROJECT

A BIOTOPE PAV I L I O N CBNME gets an exclusive update on the progress of the Netherlands Pavilion from V8 Architects

Facts • • • • • •

3,3 km sheet pile 13,500 edible plants Growing mushrooms 800 liters water per day 400 m2 bio textile 650 m2 biobased mycelium tiles

The Netherlands pavilion, designed as a climate system, is a so-called biotope that allows visitors to experience the connection between water, energy, and food. Water will be harvested out of the air, energy is collected from the sun and edible plants and oyster mushrooms will be grown inside the pavilion. All for visitors to see, smell and taste.

As the Netherlands pavilion is located in the Sustainability District, V8 Architects believed the pavilion should be designed and constructed as a showcase of sustainability and circular32

ity. Therefore, all materials used are reusable, recyclable, or bio-degradable, keeping the pavilion's footprint as small as possible.

The architects decided to use as many building materials as possible from Dubai, to rent them and to return them after the expo event ends. This local sourcing resulted in the use of steel sheet piles and construction tubes. Materials that generally are used underground are, in this case, used above the ground, as the walls of the pavilion to be precise.

This is a unique approach to empha-

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size the circularity of the construction material while also showcasing the Netherlands' civil engineering expertise.

In contrast to the exteriors civil engineering character, the interior adds a scintillating layer of light and refinement, inspired by the typical rhythm of the Dutch landscape and geometric patterns and elements from the Arabic culture.

One interior item that will reflect elements from both cultures in its design is a first of its kind bio-based curtain, made of bio-polymers. Also, specially designed solar panels generate energy

while having sunlight feed the edible plants at the same time.

Also, floor and wall parts of the lounge area are designed and executed with a new bio-based building material for which mycelium forms the basis. Mycelium is the vegetative part of a fungus that once dried forms the basis for wall and floor tiles. V8 Architects are currently also involved in a research project with Dutch universities to further look into mycelium qualities regarding acoustics, weight, absorption, construction methods, and aesthetics.

The latest update on how the pavilion is shaping up to fulfill the initial vision of the design From July onwards, all construction works on the Dutch pavilion will be halted. At that time, the load-bearing structure of the tent will be finished. In other words, 80% of the entire buildWWW.CBNME.COM

ing will be completed, including the steel structure of the large cone, against which edible plants have to grow in the pavilion, and the chimney above it. The fact that the largest part of the pavilion will be ready by then has to do with the materials used. The pavilion is being built using locally available materials, such as steel sheet piles and construction tubes.

Those materials are resistant to high

temperatures and retain their natural appearance in the long term. As a result, little or no adverse effects are expected during the period that the construction is halted. The roof’s watertight layer and front facade will be installed next year when the construction of the World Expo is resumed, most likely in January 2021. The same goes for innovations, installations, and AV equipment.

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// EXPO

PUSH FOR 2021 France Pavilion reinvents itself tackling today’s challenges and is looking forward to welcoming visitors in 2021

Through its Commissioner General for the World Expo 2020 Dubai, France supports the decision to postpone the event by one year, from October 1st, 2021 to March 31st, 2022. This postponement has been officially announced by Expo 2020 Dubai and is set to be approved by the Bureau International des Expositions’ (BIE) on May 29th.

The France Pavilion, with the support of Compagnie Française des Expositions (COFREX), the body in charge of organizing France’s participation in international and world exhibitions, and its partners, invite visitors to share their renewed ambition in October 2021.

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The one-year postponement will give France the opportunity to reinvent its Pavilion to better suit today’s global challenge of innovative eco-friendly and user-oriented mobility solutions.

France, through its Commissioner General for World Expo 2020 Dubai, has voiced its support of the decision made by more than two-thirds of BIE’s Member States and the organizers of Expo 2020 Dubai; a reasonable and responsible step during these uncertain times. The decision to postpone the event, supported by France and by more than two-third of BIE’s Member States, aims to ensure that the millions of visitors expected at Expo can enjoy

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the event in the best of conditions.

The goal of a World Expo is to raise awareness and work towards solving the greatest challenges we face today.

Expo 2020 Dubai’s theme of “Connecting Minds, Creating the Future” is now more important than ever. All nations will come together for six months to brainstorm, pitch and implement concrete solutions to serve humankind.

Given the current health crisis, this theme is no longer a suggestion, but a priority.

France will echo this need, using the France Pavilion to convey how French innovation can play a part in reaching that goal. This international event will give

Erik Linquier, Commissioner General for the France Pavilion at World Expo 2020 Dubai and Chairman of COFREX

France a platform to showcase its actions and innovations featuring new eco-friendly and user-oriented mobility solutions.

“I recognize this responsible decision, which is the most suitable given the current international health crisis and demonstrates a collective will to keep everyone safe and healthy.

Through COFREX’s actions and with the support from our sponsors, France’s participation will be even more impactful. This extra year will give us the opportunity to further focus on the program and experience we want to create for our visitors on the France Pavilion. It is also our responsibility to contribute to and WWW.CBNME.COM

support post-crisis efforts to reboot the French economy,” said Erik Linquier, Commissioner General for the France Pavilion at World Expo 2020 Dubai and Chairman of COFREX. The France Pavilion’s sponsors positively welcomed the decision to postpone the event in order to focus on the health and safety of the international community. They confirmed their support through maintaining their participation in the France Pavilion, and COFREX would like to thank them for their trust, cooperation and efforts.

COFREX is delighted to keep working with its sponsors to make France’s participation in the World Expo a unique

experience for its visitors. The success of France's participation in the World Expo 2020 Dubai will also and above all be measured by the success of the companies involved, economic stakeholders and local French authorities, which will showcase their actions in contributing to the economic rebound we are all working towards.

Furthermore, France Pavilion continues to be built under the Emirate authorities’ health and safety rules.

The construction team working on the France Pavilion is closely monitored every day by the medical staff of the building company BESIX to ensure their health.

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// TALKING POINT

LIFE AFTER COVID-19 Nasser Al Sheibani, CEO of Al Mouj Muscat, tells us how using technology will strengthen our community Across the world, it is claimed that the novel coronavirus COVID-19 pandemic is bringing communities closer together. On the ground, community developers need to do more than hope this is true. We can take practical steps to ensure that this noble aim is a crucial part of the changing reality around us.

To counter COVID-19, ‘social 36

distancing’ emerged as a solution to ‘flatten the curve’ of transmission, by setting restrictive minimum distances between people outdoors and, ideally, ensuring that individuals are only in the proximity of people in their immediate household. The simplest way to enforce it has been to have everyone stay at home. Unfortunately, this policy could also leave people feeling more

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isolated – the opposite of bringing communities closer together.

At Al Mouj Muscat we are doing our part to defeat COVID-19 by following the directives of the Supreme Committee and medical advice. When it comes to sustaining the community spirit during this time, we are actively taking a lead. This approach comes from our long-standing recognition that commu-

nities are much more than just physical dwelling places – I.e. more than their bricks and mortar.

Our colleagues have taken the initiative in using technology to keep in touch with residents and investors during the pandemic. Whereas the conventional approach to this might have been to send out a few emails, we opted to do things differently. This matters – not least because it could provide a model to other organisations wondering how to develop their own approach to community building.

For residents and prospective residents, it is important to keep up to date. If the usual stresses and strains of buying and selling a home seem daunting, conditions of ‘lockdown’ could potentially ramp up the stress levels. Our innovative response is the Al Mouj Muscat Virtual Assistant, an interface helping potential buyers and customers to connect with sales agents. This has improved the ‘working from home’ experience as it allows customers to contact our team of experts with enquiries about the latest offers. Communication works both ways, meaning that virtual meetings are now the norm, cutting out the risks of COVID-19 transmission associated with face-to-face meetings.

We are deploying new technologies to ensure that finding a new home can continue as smoothly as possible. To this end we are implementing virtual show home tours, where prospective buyers can visit premises online and navigate from their desktops to discover and explore the features of their future homes. In the current circumstances, this constitutes a powerful means with which to experience the benefits of living in an Al Mouj Muscat property.

So far, so business-like. What about building community so that it connects the people who live there?

Here’s where some major steps have been taken to help keep our residents engaged and informed. Running on a mixture of creative thinking and highWWW.CBNME.COM

Chris Aird, director, JLL

speed internet connectivity, our Stay at Home Challenge videos bring together residents and online users of the service, prompting them to keep active throughout this challenging period.

Each Stay at Home Challenge video features one or more local influencers who set up and encourage activities by our residents and other visitors online.

Divided into the four broad areas of Cooking, Art, Sports and Kids Activities, each Challenge gives the viewer something practical to complete.

Responding to these videos is both fun and educational, where there is always something new to learn. Such activities support physical and mental wellbeing by keeping Al Mouj Muscat’s residents inspired and engaged.

The video-based experience is supported by various other communications channels and platforms, including email, social media and newsletters. Our messages encompass more than just encouraging people to take part in activities, however. They can also update the community on the latest Al Mouj Muscat developments and – when necessary – supply the latest public health-related directives. Such work would have been almost impossible back in the days

of analogue media, which lacked the flexibility of keeping in touch across multiple platforms. Now we can switch between factual, playful and urgent messaging, whenever the situation demands it. Additionally, in celebration of this Eid Al Fitr, we held an engaging online session for our community’s little ones encompassing fun activities and sing alongs to keep them entertained during the holidays.

To support our vulnerable residents who have been affected by the lockdown situation and may have experienced difficulties in obtaining necessary groceries and prescriptions, we have also introduced a volunteer initiative to support them as much as possible. Residents in need of support can now contact our Contact and Information Centre through emails or phone calls to express their needs or simply have someone to talk to, we would then reach out to our volunteers to support them and look out for them.

For Al Mouj Muscat to be a rounded, authentic community, it must look after its employees too. We want to ensure that some of this lockdown time is used for staff development.

This is where digital learning can fill in some gaps, now that more conventional face-to-face training is on hold.

Recently all colleagues received access to several insightful courses provided

by Knowingo+, either through work email or by downloading the Knowingo+ app. More senior team leaders, including all line managers, are now undertaking digital learning courses on the LinkedIn Learning Platform.

For Al Mouj Muscat, these challenging times are an opportunity to strengthen the sense of belonging of our community, whether through great communications, encouraging residents’ activity or by enhancing online every employee’s skills. We hope to emerge from this time stronger and more cohesive than ever, with our destination to continue be the leading place to live and work in Oman.

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// INTERVIEW

LAND OF OPPORTUNITY Kasun Illankoon spoke to Husni Al Bayari, CEO & founder of D&B properties, on his thoughts on how Dubai is an ideal place for an buyer VISION 2020 The future of the real estate market in Dubai is my opinion a very bright due to the leadership shown in the UAE. Dubai is probably one of the best infrastructures, a city in the world, and their aspirations to always be the best at what they do. We want to grow as a company, along with Dubai's ambitions. Since its inception in mid-2015, 38

we have grown organically and successfully to become a serious player in the market. We have also built a fantastic team based on professional family ethics, and long may this continue.

Dubai's real estate market will come down to basic economics, which is supply and demand. At this stage, I would say that supplies probably

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a little bit higher than the demand.

Still, I am sure that the government is putting in place the right policies and regulations to increase that supply.

Once the demand increase is achieved, we will see a healthy recovery of the real estate sector in this great city.

PROPERTY MARKET The real estate market in Dubai has

continued to grow over the years, establishing itself as one of the most exciting markets in the world. The luxury sector is also consistently getting better and better, and investors from around the world are considering adding Dubai to their property portfolio. The term luxury and the Middle East always go together, in my opinion. There will always be a significant demand for luxury in this part of the world. Over the past couple of years, we've seen developers build Master communities and Supply the market with a large number of units, not at the level that we consider highend luxury goods. This, combined with where we are priced at in terms of price per square foot compared to many metropolitan cities around the world, will create a formula that will be extremely attractive for people who are looking for high-end luxury products.

Due to Dubai's dynamic culture,

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robust security, and incredible lifestyle.

Keep in mind that the popularity of the Dubai real estate market only started 20 years ago. Over this short time, the emirate has established itself as a significant player on the global stage.

COVID-19’S IMPACT Yes, sales have been affected, and the market has naturally slowed down as a result. However, we have seen a considerable increase in demand from people wanting to buy and rent properties all over the city; the sales and leasing teams have not seen this amount of pipeline for a long time.

We utilized the most advanced technology to communicate and motivate everyone within the company as well as increased our marketing budget, lead generation, and incentives to instill every agent with the inspiration to keep moving and closing deals.

ADAPTING TO CHANGE We were able to adapt by employing the best technologies, making more calls than ever, and working with Dubai Land Department to complete transactions virtually and securely. We believe that Dubai is fully prepared to cope with COVID-19 just as it recovered from the last global recession in 2008. The impact on technology is priceless. Our industry from Brokers perspective, the majority of the technology that we used helps us increase our reach to customers who are interested in this part of the world and improve our internal efficiency operationally. In front of the government, I think technology is helping by making the process of transferring and registering properties quicker and more efficiently. The constant improvement of these technologies and processes will have a direct impact on the quality of service that the government provides.

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// MACHINERY

COMPACT SDLG E660FL PROVES MIGHTY AND POWERFUL ON INDONESIAN HOUSING DEVELOPMENT The newly launched SDLG mini excavator E660FL is proving it is small but mighty on a housing development in Indonesia. Property developer PT Tanggamus Niaga Tama is using the E660FL mini excavator to build new houses in Lampung province in Sumatra, Indonesia.

“Indonesia’s urbanization is growing rapidly, and companies need versatile machines that can work within tight space constraints,” said Deky Asitky, director of PT Tanggamus Niaga Tama.

“The SDLG E660FL mini excavator may be small but it has proven its mightiness on site, and it is perfect for our work.”

On site since July 2019, the E660FL works about eight hours a day, preparing the land for the housing development in Tanggamus Lampung 40

at Tanggamus Regency. The E660FL excavator also helps with drainage and landscaping works.

“I am very satisfied with the purchase of the SDLG E660FL excavator.

Despite having to work with hard materials like stones, the E660FL has proven its strength,” Asitky said. “Fuel consumption has also reduced and its bigger bucket makes work easier. It is very affordable yet reliable.”

The 6 ton-rated E660FL is powered by a 38.3 kW engine and has a bucket capacity of 0.22 m3. The compact excavator features a reinforced four-valve structure and multistate air intake filter to provide reliable performance in a wide range of climates and environment.

The E660FL is also available with an optional X1 hydraulic function that

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allows hydraulic rock breakers and other attachments to be used with the machines. Hydraulic breakers are suited for breaking rocks, asphalt and other hard surfaces found in general construction applications. Optional rubber track pads are also available to allow the units to work on asphalt or concrete without damaging the road surface.

“As a machine operator, it is very important for us to be comfortable operating the machine as it helps to increase efficiency,” said Ringgo, machine operator at PT Tanggamus Niaga Tama. “I love operating the E660FL as it is very easy to use. The joystick response is fast, the excavator is easy to operate, and the cabin is very comfortable. That’s just the most ideal excavator.”

BPH BREAKS INTO SAUDI ARABIA MARKET WITH PRODEM DEDICATED SHEARS

BPH Attachments has broken into the Middle Eastern market with its PRODEM Dedicated Shears hydraulic attachment range.

Purchased to demolish fire-damaged 35-metre high fuel tanks for a project in Jeddah, Saudi Arabia, the PRODEM PDS200R, PDS300R and PDS400R shears were selected to connect with the crew’s high reach excavators.

Given the strenuous work the shears will be undertaking, the bolt-on piercing tip and blades – which can be turned up to four times before replacement – will ensure that service downtime is kept to an absolute minimum. Furthermore, a reduction in cycle times thanks to an innovative speed valve regenerates power and protects the shear eliminating internal oil pressure peaks, while the upper jaw guides make for easy and perfect alignment every time – increasing cutting power, efficiency and production WWW.CBNME.COM

Hi-capacity: get the best out of the lifting cycle

for this major project.

This is set to be the first of many projects for PRODEM in the Middle East. As the world’s largest oil exporters, the transcontinental region plays host to many disused tanks which have now been deemed more profitable to demolish rather than stand empty.

Matt Bastable, Sales Director at BPH Attachments which distributes PRODEM Attachments, said: “This is our first step into the Middle Eastern market and we are looking forward to a long and successful relationship with contractors throughout the region in the future. We have seen significant continued growth for the PRODEM brand over the past few years and, with new business opportunities presenting themselves worldwide, we are thrilled that our reputation for innovation, reliability, performance and customer-service is spreading.”

The main advantage of the new 460SJ HC3 is its increased flexibility. When it comes down to getting all the people, materials, and tools you need to go where they need to be, lifting time is significantly reduced and efficiency is improved on-site with JLG’s 460SJ HC3 extra capacity.

HC means: “Hi-Capacity”, the “3” stands for three different work areas to which the machine automatically adjusts itself. Thanks to the increased load capacity of 300 kg in the entire work area and in the restricted area of the work envelope from 340 kg to 454 kg; three people with tools can carry out a wide range of tasks in height – with a maximum side inclination of 5 degrees. Stability, traction and a working height of 16,20m and a maximum outreach of 13m (depending on the platform load) and continuous a 360-degree swing characterize the HC3 series.

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// MACHINERY

JLG DELIVERS 10 HEAVY-DUTY TELESCOPIC PLATFORMS TO GERMANY JLG Industries, Inc., an Oshkosh Corporation company and leading global manufacturer of mobile elevating work platforms and telehandlers, announces the first delivery of 10 460SJ HC3, the allnew Hi-Capacity models, into Germany.

If you want to rent work platforms in Munich, Landshut, Regensburg and the surrounding area, Willenbacher is your competent contact. The company

is the first to receive ten new 460SJ HC3 heavy-duty telescopic platforms from JLG in Germany. The delivery expands the Willenbacher fleet of approx. 500 units on AWP’s and forklifts.

The state-of-the-art machine continues the successful 460SJ and addresses the current market requirements with expanded options: more workload and more people in the basket.

JLG AWP’S – HIGH DEMAND WITH WILLENBACHER

The family-owned company “Willenbacher Arbeitsbühnen” has been successfully using machines, devices and technologies from JLG for 20 years in order to offer continuous innovations for working at height and the best possible service to the German market. “We have had very good experiences with JLG, the 42

cooperation has existed for a long time,” explains Christian Willenbacher, owner and managing director. “The support at JLG is simply good, the appearance is very professional in all areas,” he praises, “and JLG always delivers the latest technology – whether it’s electric drive or high payloads.”

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ClearSky telematics system installed ex works The 460SJ HC3 is fitted with JLG’s ClearSky telematics system. With this convenient tool, realtime information about the status of the machine can be received, allowing for easier maintenance of equipment. All activities are logged and can be easily accessed via computer. This means that any operating problems or necessary repairs that cause error messages can be solved quickly and easily – because support is also possible from a distance.

The JLG 460SJ HC3 delivered to Willenbacher are equipped with non-marking tyres, making them ideal for use near buildings with new or sensitive floors.

The 460SJ HC3 was introduced at bauma 2019. Willenbacher GmbH is the first rental company to see a delivery of these Hi-Capacity machines. The 460SJ HC3 is available to order.

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