Abu Dhabi: Abu Dhabi-based Bloom Holding is working on plans to expand overseas with a first entry into the US markets, its chief executive told Gulf News in an interview last week.
Bloom Holding, which is involved in property, hospitality, health-care, education and retail sectors, is currently awaiting approval from the authorities for a mixed-use development in Rochester in the state of Minnesota.
“It is in the final stages of approval by the city of Rochester. It is a mixed-use project, which includes hospitality, health care, senior living and residential for sale,” said Sameh Muhtadi.
As part of overseas expansion plans, Bloom is also evaluating plans to enter some European markets such as Portugal, Serbia as well as South Africa.
“We have taken serious steps to look at Portugal, more recently looking at Serbia and South Africa. We are doing market research and we think there might be potential. We are also looking to provide corporate housing solutions in Saudi Arabia,” Muhtadi said.
The company is active in a number of projects in the UAE at present including Faya project near Khalifa park in Abu Dhabi, two projects in Saadiyat Island and Bloom Marina in Al Bateen.
In Dubai, it launched phase one of Bloom Heights and Bloom Towers with 1,600 units in both projects last year. The company is set to release phase two of these projects during Cityscape Dubai this year.
Faya, comprising 132 town homes, is in the final stages of construction and is expected to be handed over to clients in the first quarter of 2018, Muhtadi said.
Park View in Saadiyat Island, which has hotel apartments and residential units, is expected to be completed in September 2018, and Soho Square in Saadiyat is due to be completed in November next year.
“Construction on all projects is progressing well. Faya is 100 per cent sold, Park View residential units are 80 per cent sold. We are holding on to 20 per cent for leasing. And the hotel has been sold. At Soho Square, 80 per cent of the units are sold and we are in the process of selling remaining,” he said, adding that the demand has been good with Emiratis, Indians, British, Arabs and Chinese nationals buying the units in the company’s projects in Abu Dhabi and Dubai.
The developer is planning to launch three more projects in Abu Dhabi next year, one in luxury segment and two projects for mid-market housing.
Preparing for IPO
Speaking about IPO (initial public offering) plans, Muhtadi said they are making steady steps to be ready for the IPO with advisers and consultants on board.
“Our objective is to be fully ready to be engaged with advisers and banks by the middle of 2018. The timing of the IPO itself is something which will be market-driven more than anything else. I hope it will be 2019 depending on the market and geo-political tensions,” he said. “It looks like 2018 is going to be an interesting year for IPOs. I know quite a few IPOs that are going to be ready including [of] some developers.”
Growth strategy
Bloom’s chief says the company has developed a five-year strategy that shows growth in revenues at 20 per cent year-on-year and growing component of recurring revenues.
“We intend to look into new areas, predominantly community malls. We are looking at Al Ain and also some possibilities in Abu Dhabi.”
Bloom Holding quadrupled its sales and tripled its revenues last year, and the same rate will continue in 2018 and 2019, according to Muhtadi.
He said there has been a lot of stability in Abu Dhabi due to economic stability as well as development of new projects. “We see a lot more stability in the market now. There is economic stability, there is visibility as to what’s happening in the balance of 2017 and 2018 relative to price of oil, relative to tourism and relative to what’s developing in Abu Dhabi.
“We know, for instance, that Louvre is going to open in Abu Dhabi on [the UAE] National Day, and that is going to improve tourism situation which translates well for us because we own hotels. In that perspective, there are positive signs,” he concluded.
