UEM Edgenta Expands into Dubai’s Real Estate Market
KUALA LUMPUR (June 12) – UEM Edgenta Bhd has embarked on an exciting journey, marking a significant strategic expansion into Dubai, United Arab Emirates. This move comes through the formation of a joint venture (JV) company aimed at managing large-scale real estate projects within the region.
Formation of DuaSatu: A New Joint Venture
The key player in this JV is Kaizen Owner Association Management Services LLC, a 60%-owned subsidiary of UEM Edgenta. The subsidiary has recently sealed an agreement with 21 Estates Group FZCO, a wholly-owned subsidiary of Expo City Dubai FZCO. Together, they have established a new joint venture named DuaSatu, with a structure of 40:60, where UEM Edgenta holds the majority share.
A Diverse Range of Services
DuaSatu is set to provide an extensive suite of services designed to meet the demands of property management in Dubai. These offerings will include owners’ association management, property management consultancy, advisory services, leasing, and additional real estate advisory solutions. Notably, the services will cater to master development projects in Dubai, including properties owned by Expo City Dubai, and may extend to selected sites on a global scale.
UEM Edgenta’s Strategic Path
UEM Edgenta’s foray into the Middle East’s premium property management sector began with a pivotal acquisition. In February of the previous year, the company acquired Kaizen from NW Kaizen Holdings Ltd for approximately RM55 million. This acquisition laid a strong foundation for UEM Edgenta’s aspirations within the burgeoning Dubai market, a further testament to its commitment to grow its brand in the region.
Addressing Market Opportunities
The joint venture represents a strategic response to the ever-growing opportunities in Dubai’s real estate sector. "Dubai’s real estate sector continues to offer tremendous opportunities," remarked Syahrunizam Samsudin, UEM Edgenta’s managing director and CEO. This collaboration with 21 Estates positions the company to deliver high-quality, technology-driven property management solutions designed for some of the region’s most iconic developments.
Commitment to Stakeholders
Beyond financial ambitions, UEM Edgenta’s entry into this new market underscores a commitment to creating long-term value for stakeholders. The initiative aims not only to enhance UEM Edgenta’s brand presence but also to reinforce its leadership within the Middle East.
Future Outlook
The establishment of DuaSatu is projected to be finalized by the third quarter of this year. As UEM Edgenta ventures into this promising market, the company anticipates that the joint effort will have a positive impact on its future financial performance. Investors are keenly watching the developments as the company navigates this significant phase of growth.
Stock Market Reaction
On the day of the JV announcement, UEM Edgenta’s share price reflected a positive sentiment, closing at 74 sen—an increase of half a sen or 0.68%. This movement brought the company’s market capitalization to an impressive RM611.2 million, showcasing a robust level of investor confidence in its expansion strategy.
This foray into Dubai’s real estate management sector not only positions UEM Edgenta for growth but also highlights its commitment to innovation and excellence in the increasingly competitive landscape of property management.
