Provis seeks acquisitions as it expands in UAE and GCC

Provis, a fully-owned property management arm of Abu Dhabi’s biggest listed developer Aldar Properties, is seeking acquisitions of rival companies in the UAE along with the broader GCC market as it aims for a 20 to 25 per cent year-onyear rise in revenues this year, according to a senior company executive.

Abu Dhabi’s biggest property management company, Provis will look for acquisitions in both other emirates and other states within the economic bloc of the GCC.

“Our growth is derived from two aspects: organically, by winning bids which are transparent and inorganically, by acquiring other businesses,” Sameer Barakat, executive director of estate management at Provis told The National at Cityscape in Abu Dhabi.

“We are in talks and hopefully, in the coming weeks and months, we will announce big acquisitions of existing property management companies and owners’ associations.”

Mr Barakat said the potential acquisitions are being evaluated by Aldar Investments, another unit of the parent company.

“What I can say is that the sky is the limit,” he said, when asked about the potential size of acquisitions the company is looking for.

“Aldar has the powers to acquire, if you see the acquisition made lately.”

Last year Aldar acquired real estate assets of Abu Dhabi’s Tourism Development and Investment Company in a Dh3.7 billion deal, one of the largest property acquisitions in the country’s history.

Aldar Investments earlier this year said it is acquiring full ownership of Etihad Plaza and Etihad Airways Centre from the airline in a transaction worth Dh1.2bn.

“Aldar wants to grow and not grow alone, but with its subsidiaries,” Mr Barakat added.

The company is now looking to acquire additional assets to strengthen its portfolio.

It is also open to partnerships to sell and develop new property projects in Asia and the Middle East and North Africa, Maan Al Awlaqi, Aldar’s executive director of commercial told The National earlier this week.

Provis, which provides services from sales and leasing to property consultancy and management for developers, owners’ association consultancy and management and clubhouse and lifestyle management, has set up an office in Dubai.

It now aims to start working with major developers in the emirate, especially on providing lease and property sale services.

UAE real estate prices have declined in the past two years owing to a slowdown in the global economy, lower oil prices and muted demand. As more property projects come online, developers, especially small to medium-sized companies, are looking to cut costs and hire companies such as Provis to manage their properties.

Provis, which has a portfolio of more than 13,500 units under property management and more than 14,000 units managed by owners’ associations, expects significant growth in both the number of units and its client base this year.

It expects an increase of at least 20 to 25 per cent in revenues this year alone, Mr Barakat said, declining to give the a figure for expected revenues.

The company plans to focus on the UAE and GCC markets for the next three to five years and will look to expand its footprint beyond the region afterwards.

Khidmah, Aldar’s facilities management subsidiary, has been present in Saudi Arabia for the past three years and Provis intends to capitalise on its relations with clients such as Saudi Aramco, the world’s biggest oil-producing company, and bid for new mandates in the kingdom, he said.

Within the UAE, Provis is already managing all of Aldar’s residential and commercial assets and has a mandate to manage the residential assets of property developer Miral and some third-party medium-sized property owners.

The company is also managing properties for some government entities including the Federal Auqaf department in Abu Dhabi and Northern Emirates and has client relationships with all the “blue-chip companies” including banks and big conglomerates, Mr Barakat added.