Civinity disinvests from Ukraine, further development – only within the EU
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 and other cities in Ukraine.
Civinity which manages over 6 mln sq. m. 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 organized by local municipalities.
“Ukraine is a large market with a big potential in both residential and commercial property segments. The former alone reaches 1 billion sq. m. However, despite the opportunities and considering existing differences in regulation and housing management practices in Ukraine and the Baltic States, we have decided to discontinue our operations in the country and sell all our projects in Ukraine,” commented Rimvydas Ramanauskas, CEO at Civinity.
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 mln sq. m. of residential property. Today, the company manages over 3000 buildings in the Ukrainian capital Kiev and other cities across the country: Zaporizhia, Mariupol, Melitopol, Kremenchuk and Energodar.
“Over the past several years Civinity has significantly expanded. In 2017 alone, our revenues grew by 60% and reached 39 mln EUR. The largest part of revenues was generated in Latvia where we have been successfully developing for over 4 years now. 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. For instance, Estonia where are already in negotiations with potential partners,” shared Civinity’s Chief Business Development Officer Deividas Jacka.
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.