Civinity divests from Ukraine to focus solely on Europe
Civinity, one of the largest residential and commercial facility management providers in the Baltic States, has decided to discontinue any further development in Ukraine and sell its stake in the Civinity Ukraina JV. The latter controls facility management companies in Kiev, Zaporizhia, Mariupol and Kremenchuk.
Civinity, which manages over six million square metres of residential and commercial estate in Lithuania and Latvia, entered the Ukrainian market almost two years ago. Together with its local partners Civinity established a joint venture Civinity Ukraina, which participated in and won several residential facility management tenders organised by local municipalities.
“Ukraine is a large market with a big potential in both residential and commercial property segments. The former alone reaches one billion square metres,” says Rimvydas Ramanauskas, CEO at Civinity. “However, despite the opportunities, Ukraine still has a long way to go in terms of improving its legislation and practical appliance of the law, as well as changing the attitude of public servants towards the business. With this in mind, we have decided to discontinue our operations in the country and sell all our projects in Ukraine.”
Established in 2016, Civinity Ukraina controlled a Ukrainian company Misto dlya lyudei (City for People), which successfully won a set of facility management tenders, including the one conducted by Zaporizhia municipality for the management of 3.5 million square metres of residential property. Today, the company manages almost 3000 buildings across the country’s capital Kiev, as well as Zaporizhia, Mariupol and Kremenchuk.
“Over the past several years Civinity has significantly expanded. In 2017 alone, our revenues grew by 60 percent and reached 39 million euros. The largest part of revenues was generated in Latvia where we have been successfully developing for over four years now,” says Civinity’s chief business development officer, Deividas Jacka.
“In terms of future development, we focus only on projects within the EU: these are politically stable markets where the government promotes and supports international investors and where the market players have a mature vision of the government-business partnership.”
Earlier this summer, Civinity together with a Lithuanian entrepreneur Domas Dargis announced its plans to acquire a commercial facility company Statinių priežiūra and an engineering system design company Dizaja. The deal, which is already approved by Lithuania’s Competition Council, is set to be closed by the end of July.
Civinity is one of the largest residential and commercial facility management providers in the Baltic States. With almost 20 companies, the group manages over five million square metres of residential buildings and 115 million square metres of commercial objects. In addition, while uniting a team of 2000 professionals, Civinity offers cleaning and environmental management, waste management, technical audit, as well as building modernisation and renovation services. For more information visit www.civinity.eu.
Images courtesy of Civinity.