Eltizam signs USD 100mn JV agreements with Al Ahly Sabbour to expand footprint in Egypt
Industry giants Eltizam Asset Management Group and Al Ahly Sabbour Developments, Egypt’s leading real estate developer, have signed two joint ventures with a combined value of USD 100 million as part of the Group’s game-changing expansion initiative in Egypt and the rest of the MENA region. The landmark agreements will open a new chapter of success for Eltizam as it aggressively expands its footprint in one of the region’s biggest markets.
The JVs will focus on Eltizam providing the Egyptian market through its ties with Al Ahly Sabbour with integrated facilities management (FM) and community management (CM) services.
The two contracts encompassing four projects, separately outlined the terms and services provided by the Group’s subsidiaries, Tafawuq Facilities Management and Three60 Communities, to Al Ahly Sabbour’s prime properties. Al Ahly Sabbour’s sister company, Egyptian Company for Entertainment & Tourist Attractions (ECETA), will also be a part of both agreements. Under the backing of Engineer Hussain Sabbour, ECETA has become among the most prominent Egyptian companies in the field of Integrated Management Services of real estate projects, whether Residential, Commercial or Entertainment focused since 1999.
Under the terms of the JVs, Eltizam’s services will initially deploy to four of Al Ahly Sabbour’s portfolio of mega property projects. As the partnership’s progress, all parties have agreed to expand the existing terms to cover other high-end real estate developments of Al Ahly Sabbour.
Chris Roberts, CEO, Eltizam, said: “This development is a historic milestone for us at Eltizam. Expanding to a market as large as Egypt is a testament to our capability to provide value-added services that meet the highest standards in the area of long-term asset protection. It represents one of our major expansion drives in the region, paving the way for us to showcase our competitive edge and unparalleled technological advantages.”
In response to the current pandemic, Egypt has cut its interest rate by 300 basis points to stimulate demand to help accelerate the property community’s recovery after being impacted by the global health crisis. Before the worldwide spread of the virus, the sector was strongly attracting healthy investor interest. Data released by Egypt’s Central Agency for Public Mobilization and Statistics (CAPMAS) showed that real estate investments during 2017-2018 reached EGP 106.9 billion (about USD 6.57 billion), up from EGP 91.8 billion in 2016-2017.
“We are confident that our collaboration with Al Ahly Sabbour will help reshape the landscape and the future of the market in the country as the community explores, taps, and seeks new growth opportunities during and after the pandemic,” Roberts added.
Commenting on the latest development, Engineer Ahmed Sabbour, CEO, Al Ahly Sabbour, noted: “In line with the directives issued by the president and in accordance with the government’s planned programs, Egypt is currently seeing key growth across its construction sector, which has reinforced its presence in the global real estate landscape. These newly signed joint venture agreements between Eltizam Group and Ahly Sabbour reflect the growing economic collaboration between Egypt and the UAE–highlighting a bilateral alliance that is beneficial to both country’s economic sectors. Moreover, I would like to extend my greetings to the leadership and people of the UAE on the occasion of the UAE National Day, expressing our sincere gratitude to the UAE leadership, and appreciation of the milestones reached by the late Sheikh Zayed bin Sultan Al Nahyan, the founding father of UAE and the ‘wise man of the Arabs.'”
He added: “We see an opportunity in the market for the delivery of high-performing FM and Community Management (CM) services focusing on technical quality standards and customer service. The capabilities and resources of Eltizam and its subsidiaries are suitable to the market’s requirements.”
Tafawuq and Three60 will operate in line with Eltizam’s commitment to ensuring customer happiness and achieving growth by following the Group’s organizational and business enhancement culture called Get Wonky. Both subsidiaries will utilize the latest technologies for faster and more streamlined operations and higher customer satisfaction.
Harnessing the power of next-generation tools, Eltizam has rolled out the latest FM-related technological innovations to further set it apart from its competitors. It has deployed the Internet-of-Things-enabled work orders for hard and soft services, automated the key processes of its soft services, and centralized its command and control center for improved and more efficient monitoring of FM project operations. Further, for faster delivery of CM services, Eltizam’s technology platforms, including portals, apps and its modern 24/7 contact center, among others, continue to be part of Three60’s unique value proposition.
Eltizam has expressed confidence in the new partnership and has identified the collaboration as a crucial step in the group’s continuing efforts to consolidate its future expansion in Egypt as it plans to integrate smart technologies like IoT into businesses. Subsidiary companies of Eltizam, such as Omnius Estate Services, 800TEK, and others, will also be considered to build a robust industry presence and broaden its reach in the country.