Aldar Properties PJSC (“Aldar” or “the Company” ADX: ALDAR), Abu Dhabi’s leading listed property development, investment and management Company, reported strong performance of its full-service, integrated asset management company, Khidmah. Aldar is the majority shareholder of Khidmah with a 60% stake.
Khidmah saw a 90 percent increase in profits for the full year 2013 to Dhs19 million from Dhs10 million in 2012. Revenues rose 22% to Dhs156 million. The business has successfully diversified from solely managing Aldar assets and, in 2013, 78% of revenue was generated by third party clients.
H.E. Abubaker Seddiq Al Khoori, Chairman of Khidmah and Aldar Properties, commented, “Khidmah has built a strong position in the Abu Dhabi market and this is reflected in the impressive number and size of contracts won in recent months. Since its inception, the Company has been focused on delivering the best service to its customers, at the best price. Khidmah’s aim has always been to distinguish its properties through the delivery of the highest quality management services. Operating increasingly as a standalone business, we believe there is strong case to consider listing the company in the coming years.”
Last week, Khidmah was appointed by Musanada, the facilities management and shared services arm of the Abu Dhabi Government, in a Dhs54 million contract to provide Total Facility Management services for 225 Mosques in Abu Dhabi’s Western Region for a period of three years starting in April.
Musanada also hired Khidmah for Total Facility Management for 27 governmental buildings in Al Ain, covering mechanical, electrical, plumbing, cleaning services, pest control, landscaping services, hospitality and security services. This second contract will run for a period of three years starting in May and has a value of AED 34 million. Other major business wins since the start of the year include a three year contract under process with Mubadala for the cleaning services for ten of their sites, in addition to cleaning, MEP, façade cleaning and waste management for the First Gulf Bank Arena in Zayed Sports City for a period of three years.
Abdulla Saeed Khalfan Al Qamzi, Managing Director of Khidmah, added, “The numerous new contracts won for both Property Management and Facility Management services since the start of 2013 demonstrate our strong proposition in a growing and diverse market. Clients like our ability to offer a full life-cycle style service provision through a single point of contact, facilitating and streamlining the Property Management and integrated Total Facility Management process, and increasing the speed of response through state-of-the-art technologies. We don’t outsource the core services and have full control over the quality of our workforce, emphasising on consistent training. We are also developing our offer to focus on sustainability, energy and water savings to benefit the environment.”
For Facility Management services, Khidmah’s portfolio includes ten Aldar communities, representing over 12,000 units. The Company also manages a villa community for Hydra Properties with an additional 450 units.
Khidmah’s Property Management portfolio includes full developments, as well as individual units. Currently the portfolio exceeds 6,600 units, and, as new properties are handed over, this number increases. Of these units, approximately 3,000 are Aldar-owned, while the others are owned by other developers, non-profit organisations, and individuals. The portfolio under management is primarily residential, however Khidmah also manages a number of commercial towers and retails outlets.
For Aldar: +971 2 810 5555
John Hopley (Investors)
Obaid Al Yammahi (Media)