Old Mutual Properties, a subsidiary of South African and United Kingdom listed financial services giant Old Mutual, has signed an agreement with the Savola Group, a leading Saudi Arabian industrial group, to establish a property services company in the kingdom.
The company, United Properties, which will also address the greater Middle Eastern region, will manage the projects and assets of the Saudi shareholders that currently have eight developments worth more than R5-billion under way or in planning. The company will also manage projects and portfolios of non-shareholder entities.
Dr Sami Baroum, executive vice-president of Savola, says a growth phase in the Saudi property market prompted the need to partner with a world leader in property and mall management.
“We identified Old Mutual Properties as a potential partner. Our representatives visited the malls and other properties managed by Old Mutual Properties in South Africa and were very impressed with their world class standards. These are reflected both in their power to draw visitors and in the number of international awards they have won for design and development.
“Most properties in Saudi Arabia are currently owner managed and as the booming market matures, the opportunity for a property services company offering an integrated solution to the market is huge.”
The Savola Group owns one of the largest retail food chains in the Middle East — the Panda and Azizia supermarkets — as well as fast food restaurants.
The group’s interests supply Saudia Arabia, the Middle East and North African countries with edible oils, sugar, and fresh dairy products. Savola’s expansion strategy for its retail division has led to a property development drive, mainly in malls, to house their hypermarkets and supermarkets.
“Old Mutual Properties will provide the property management skill, expertise and best practices to the new entity which aims to be the leading property services company in Saudi Arabia and the Middle Eastern region,” said Baroum.
“This will be achieved by attracting the best people, implementing the best practices, keeping abreast with the latest developments, technologies and best practices in the property market and offering integrated property solutions to the market that exceeds expectations.”
Ignatius Kruger, a senior Old Mutual Properties executive, has been appointed to manage the start-up and resourcing of United Properties. He said most of the projects planned by Savola are in the main centres of Saudi Arabia — Riyadh, the capital, Jeddah in the western region (on the Red Sea), Dammam in the eastern region and the two holy cities of Makkah and Medina. The projects vary from regional malls to commercial and mixed use developments. – I-Net Bridge