Friday, November 24, 2017 1:16 PM

Home / Eltizam revenue to hit Dh200m in 2016

Eltizam revenue to hit Dh200m in 2016


Revenues of Eltizam Group, property management conglomerate of eight companies, is expected to cross Dh200 million in 2016, jumping from Dh35 million in 2013, a top officials said.

Part of the Abu Dhabi-based Royal Group, Eltizam Group manages 80 towers housing 22,000 units with a workforce of 1,000 people.

“Our business is growing at a rate of more than 33 per cent per year over the last few years and we expect this to grow at a rate between 20-25 per cent till 2018-19, when we plan to expand into key regional markets, such as Saudi Arabia and Egypt,” Chris Roberts, Chief Executive Officer of Eltizam Group, told Gulf Property in an interview.

“By 2021, we plan to expand in to key international markets as part of our global expansion strategy.”
Eltizam Asset Management Group is among the leading asset management companies in the UAE providing strategic management services. It manages 53 buildings in Dubai and 27 in Abu Dhabi.

The company, which has operations in the UAE and Oman, is currently in the process of setting up a Central Command System to manage assets more efficiently that will also reduce cost of operations.

Earlier, Three60 Communities, a subsidiary of Eltizam Group, has merged with Novus Community Management. The new entity will be the UAE's largest privately owned community management company.

With increased deliveries in the freehold communities, asset, property and facilities management sector has began to grow due to the addition of new supplies and new residents moving in to the new homes. As a result, the property management business has expanded significantly.

Facilities management service contracts in the UAE were expected to be worth $5.4 billion (Dh20 billion) per annum by the end of 2015, as per security solutions firm G4S. Industry estimates put the cumulative spend on facilities management in the GCC at $892 billion over the last 25 years, with Saudi Arabia, Qatar and the UAE leading the spend.

A recent report by consultancy firm CREDO, said FM contracts across the GCC are predicted to hit $66 billion by 2020, up from $26 billion in 2014.

Dubai now has 1,600 Owners’ Associations that mostly outsources property management services to organisations such as Eltizam Group. As more and more people move into their freehold homes, the sector will grow and require more efficient management of assts.

Eltizam Group’s 33 per cent year-on-year growth in revenue is a solid testament to this growing business.

“In the coming years, we expect a 17 per cent growth in headcount, although our growth will be much stronger,” Roberts say.

“With technology and new systems, we will be able to do more with less – and thus save a lot due to efficient management. The new Command System, for example, will help us to create synergies across our portfolio.”

Globally, facilities management has gone from being an in-house service to what is projected to be an industry worth $394.69 billion by 2017, according to a report by Global Industry Analysts, Inc.

Buildings are one of the largest energy consumers in the world and the civil structures absorb more power and energy due to the extreme climatic conditions in the Gulf.

The movement for energy efficient green building will help reduce energy usage at homes – that will also help reduce utility bills.

Roberts said, his organisation is planning to add new services including utility billion, financial services and mechanisms to reduce maintenance costs.

PROPERTY FILTER


  •