Khidmah sees 90% increase in profits in 2013
Khidmah's revenue has risen by 22% to $42.47mn (AED 156mn)
Aldar Properties announced on Sunday that its full-service, integrated asset management company, Khidmah, saw a 90% increase in profits in 2013, rising from $2.72mn (AED 10mn) in 2012 to $5.17mn (AED 19mn) in 2013.
Khidmah, in which Aldar is a majority stakeholder with a 60% stake, saw its revenues rise by 22% to $42.47mn (AED 156mn) in 2013, with 78% of that coming from third-party clients, marking the company’s successful diversification from solely managing Aldar assets.
H.E. Abubaker Seddiq Al Khoori, chairman of Khidmah and Aldar Properties, said: “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,” Al Khoori said. “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 $14.7mn (AED54mn) 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 services 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 $9.26mn (AED34mn).
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.
Commenting on the company’s growth, Abdulla Saeed Khalfan Al Qamzi, managing director, Khidmah, said: “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,” Al Qamzi said.
“We don't outsource the core services and have full control over the quality of our workforce, emphasising on consistent training,” Al Qamzi added. “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, which represents 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, although Khidmah also manages a number of commercial towers and retail outlets.