A strategic decision to consolidate all real estate activities into one coherent business was taken at the end of 2018, bringing together SEDCO Holding’s expertise across the real estate value chain.
The Real Estate Division will take responsibility for SEDCO’s Saudi Arabia and regional properties and projects, under the leadership of the Chief Real Estate Officer.
Given the vast size, value and complexity of the legacy portfolio, the process of appraisal, re-organization and strategic review continued throughout 2019. To date, the new division has assumed management responsibility for the Saudi Arabian, Asian and African assets.
Initially, the division comprised two operating companies and two departments: SEDCO Development, Intimaa, Lands Department, and the Real Estate Investment Department. Other related companies and functions have since been added. The result is a better integrated function that consolidates the Group’s capabilities in real estate investment, development, advisory, brokerage, property and facilities management, technical support, and local/regional registry.
Although the division is still at an early stage, benefits are already apparent — mainly in improved efficiency and avoiding duplication of capabilities, leading to better all-round performance.
Due to uncertain market conditions, SEDCO has temporarily scaled-back its activities in local real estate development as part of the strategic review and assessment, in preparation for the next phase of growth. Consolidation and strengthening of capabilities will continue to be a dominant focus over the coming years, in readiness to potentially undertake several new projects in 2020 and 2021.