Civinity Group aims for expansion in Latvia
Upon the acquisition of AS Hausmaster and SIA RBSSkals Serviss, Civinity Group becomes the largest private real estate managing company in Latvia.
Civinity, an international group of companies operating in Lithuania, started its activities in Latvia in 2014 by privatising SIA Jūrmalas namsaimnieks. A transaction for the acquisition of AS Hausmaster and SIA Homemaster was finished in July and a transaction on the purchase of SIA RBSSkals Serviss has been just completed. The acquisition of SIA RBSSkals Serviss offers more business perspectives for Civinity Group in the neighbouring country.
Vitoldas Sapožnikovas, the CEO of Civinity and Board Chairman of AS Hausmaster, tells about the plans of Civinity Group and differences in the Latvian and Lithuanian markets.
When was the company established? Who are its founders?
The origins of Civinity date back to 1992, when the municipal company Vites valdos was founded in Klaipėda. In 2005, it was privatised. The shareholders of the company are some Lithuanians. Most of them work in the group.
Civinity Group has been expanding since 2005, through the acquisition of new building maintenance and administration companies. Since then Civinity witnessed a hundred-fold increase in its turnover. It is expected that with the two Latvian companies acquired this year the group's turnover will total EUR 40 million in 2016.
What is the current size of Civinity Group? What is the core business of the company?
Today Civinity Group owns 15 groups companies providing services to residents and business in Lithuania and Latvia. In five Lithuanian and two Latvian cities we have one or two real estate maintenance companies, while in Klaipėda, for example, there are three. Providing maintenance services to residential buildings is the main business of Civinity Group. The Group also provides maintenance services for commercial, culture and sports buildings in Latvia and Lithuania. Currently, the total area of objects administrated by Civinity Group accounts for 5.45 million square metres.
When did you decide to expand in Latvia? Is it the only country where you see business perspectives?
The building management business in Lithuania is mostly run by the private sector. Only in few smaller cities and towns building maintenance services are provided by municipal companies. There is no market niche in Lithuania, so the only option for expansion is crossing the border. When we set our sights on expansion we decided to explore the situation in the Latvian market. A largest portion of the Latvian market was and is still in the hands of municipalities. Jūrmala was the pioneer who decided to offer their building management company for privatisation. Our decision to acquire SIA Jūrmalas namsaimnieks was part of the strategic expansion. Now we are focused on the Latvian market and its consolidation.
When it comes to expansion to other countries, we have analysed the Estonian market. It is developed but small. A lot of investment is needed to enter this market and establish in it. As Estonia is a small country our business would be profitable only in few cities.
We consider Belarus, like Latvia, our domestic market. We have an office in Belarus and watch how the building maintenance sector is developing.
Civinity Group is also interested in expansion in Balkan countries and Ukraine where the building maintenance market is only in the development stage.
Source: Db.lv information