Union Properties Expands with AED 100M Acquisition
Union Properties' subsidiary ServeU acquires House Keeping LLC, enhancing its market reach in the UAE's facilities management sector.
Summary
Union Properties, through ServeU, acquires House Keeping LLC for AED 100 million, expanding its facilities management capabilities in the UAE.
In a strategic move to bolster its position in the facilities management (FM) sector, Union Properties PJSC, a leading real estate developer in the United Arab Emirates, has announced the acquisition of House Keeping LLC through its subsidiary ServeU. This AED 100 million acquisition is a significant step in expanding ServeU's market reach and operational capabilities.
ServeU, already a prominent player in the UAE's FM industry, manages a diverse portfolio that includes residential communities, commercial complexes, government entities, and hospitality facilities. The acquisition of House Keeping LLC, the second-largest provider in its segment, brings a wealth of expertise and an extensive client network to ServeU's operations. With a workforce of over 8,900 employees, ServeU is well-positioned to integrate House Keeping's specialized manpower and domestic workforce into its operations.
The financials of House Keeping LLC are impressive, with revenues of AED 221.1 million and an EBITDA of AED 21.4 million for the fiscal year 2024. These results align closely with ServeU's strategic priorities of delivering value, enhancing service quality, and improving operational efficiency. The acquisition is expected to positively impact ServeU's financial results, further solidifying its status as a trusted FM service provider in the UAE.
Eng. Amer Khansaheb, CEO and Board Member of Union Properties, emphasized the strategic importance of this acquisition, stating that it represents a pivotal step in advancing the company's long-term growth agenda. By integrating a leading manpower and domestic workforce provider, ServeU not only strengthens its operational breadth but also reinforces its commitment to delivering integrated, people-centric solutions that meet the evolving demands of its clients across various sectors.
Under the terms of the acquisition, House Keeping LLC and its affiliated entities will retain their brand identities while operating under the full ownership and strategic oversight of ServeU. This approach ensures continuity and leverages the strong brand recognition that House Keeping has built over the years.
From an investment perspective, this acquisition signals a positive trajectory for Union Properties. The company's strategic focus on expanding its FM capabilities and enhancing service excellence positions it well for future growth. Given the robust financial performance and strategic alignment of House Keeping LLC with ServeU's objectives, investors may consider this an opportune time to buy into Union Properties as it continues to strengthen its market position.
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Summary
ServeU, a subsidiary of Union Properties, has acquired House Keeping (LLC) and its subsidiaries in a deal worth AED 100 million. This acquisition aims to enhance ServeU's market position as a leading facilities management provider in the UAE. With over 8,900 employees, ServeU manages various properties, including residential, commercial, and government facilities. The acquisition is part of ServeU's strategy to improve operational capabilities and service quality. House Keeping, the UAE's second-largest provider in its segment, brings expertise and a strong client network, with significant revenues and EBITDA reported for 2024. Under the acquisition terms, House Keeping will maintain its brand identity but will be under ServeU's ownership and oversight. This move is expected to positively impact ServeU's financial performance.
