JLL Auctions, the first private industrial auctioneers granted a licence in Abu Dhabi, will be filling a ‘massive gap in the market’, believes Patrick Ditcham, director of auctions and machinery valuations for Jones Lang LaSalle MENA.
The industrial auction house is a joint venture between LaSalle and Al Nowais Group, and plans to stage its first major auction next month.
Gary Launder, of Al Nowais, said group CEO Abdulla J Al Nowais recognised the need for private auctions in the Emirates’ capital.
“No one here is doing private auctions, so Abdulla felt that it was beholden on him to step in and fill that gap.
“It is important that there is an auction house operating in the capital.”
The company initially obtained the license, and 300,000m² of land in the ICAD 5 industrial zone.
“The principal thing for us was to find the right partner, and they don’t come much bigger than Jones Lang LaSalle,” said Launder.
While Jones Lang LaSalle is providing the expertise and the history, Al Nowais is very actively involved in the business said Launder.
“We’re directly involved in establishing them with a local presence.”
Ditcham believes that the new entrant will be eagerly accepted by the local market.
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“We’re extremely optimistic that we’ve got the timing right, and obviously there is a massive gap in the market in Abu Dhabi.
“At the moment, anyone who wants to sell plant and machinery via an auction has to send it to Dubai. There are logistic and cost benefits to local companies who use a local resource rather than shipping it further afield.”
The Khalifa Port development will also mean that plant and machinery that is sold to the wider region doesn’t have to be shipped via Jebel Ali.
Ditcham says that with 200 offices worldwide, equipment sold through Jones Lang LaSalle will generate interest in the Middle East, North Africa, Africa, and even further afield.
“The wider an audience we can generate, the better the prices that are going to be achieved at auction, and that’s the critical thing for us, to add that value to the customer, that they know they’re going to get the best possible price for whatever plant or machinery they’re selling.”
JLL also conducts auctions across the full range of industry, including food processing plants, plastic manufacturing plants, construction, aviation and MEP.
“We cover the full spectrum, which does give us a point of difference.”
Currently the company is focused on connecting with companies who are looking to dispose of kit said Ditcham.
“One thing that we’re trying to instill in companies that we’re dealing with is that if they’ve got surplus assets, why not dispose of them and convert them into cash to be used elsewhere in the business.
“Obviously with the financial issues that have happened over the past two-three years, there are still a lot of companies that are retaining plant and machinery they don’t necessarily need.
“At the end of a project, dispose of the kit, rather than just sitting on the kit waiting for that next call.”
