PRESS RELEASE from 08. May 2012
08. May 2012
RGM Holding GmbH outgrows the market
08. May 2012 - RGM Holding GmbH (RGM) succeeding in consolidating its position as one of the biggest property service providers in the 2011 fiscal year: The overall output grew 16.7% from 129.9 mill. € to 151.6 mill. € and the number of full-time employees increased to 1330 (cf. 1150).
"The reasons for this success mainly lie in RGM's organic growth, i.e. in growth based on raising revenue with existing clients and a high level of client satisfaction. We also managed to win new contracts for managing major property portfolios thereby expanding the core business", explains Prof. Fritz-Klaus Lange, Managing Partner of RGM.
The entities acquired over the past years have also shown very gratifying development. For instance, KAMB Elektrotechnik GmbH, Ludwigshafen, a specialist for measurement and control technology, increased its sales volume by 29.3%. HRW Gebäudetechnik GmbH, Hamburg was also responsible for encouraging growth in Northern Germany. Moreover, RGM's foreign activities in Turkey were consolidated in the annual financial statements for the first time. "Following the stormy growth over the last five years, RGM consciously introduced a consolidation phase in the ongoing 2012 fiscal year in order to thoroughly integrate the recently acquired areas and to adapt the associated processes. This does not mean that interesting opportunities won't be exploited in the future", the company boss announces.
Three strategic business segments
Concentrating the core competences of RGM Holding into three strategic companies PropertyFirst GmbH, RGM Facility Management GmbH and RGM Industrial Services GmbHagain proved to be a competitive advantage in the past fiscal year 2011.
PropertyFirst GmbH, a 100% subsidiary of RGM Holding GmbH, concentrates on business management of modern administrative buildings, complex retail centres and large property portfolios as part of its holistic management approach. A strategic partnership with the Cologne-based asset manager Corpus Sireo was concluded in the 2011 fiscal year, which promises future growth potential.
RGM Facility Management GmbH
RGM Facility Management GmbH, the second pillar of the RGM Group and 100% subsidiary of RGM Holding GmbH, stands for sophisticated technical and integrated services for modern administrative buildings, retail centres and large property portfolios.
Thanks to its Germany-wide network of branch offices, RGM Facility Management GmbH managed to acquire a gross floor space (GFS) of around 700,000 m². The most important new clients in the 2012 fiscal year include an investor group from various retail chains, HANSAINVEST Hanseatische Investment-GmbH, Hamburg, aurelis Real Estate GmbH & Co. KG, Munich, as well as DIC Asset AG, Frankfurt.
As facility management of retail properties grew above the market average in the 2011 fiscal year, the retailing activities have been removed from RGM Facility Management GmbH and bundled into RGM Retail GmbH. This provides for holistic centre and building management for retail centres, factory outlets and centres in different parts of cities, but also shop and repair management for chain operators. RGM currently manages 12 retail centres across Germany with a GFS of 500,000 m² - including the reopen Sevens shopping centre on the Königsallee in Düsseldorf with a GFS of 16,000 m². The new owners expanded the contract in 2011 to include infrastructural facility management. RGM had already been in charge of the technical Facility Management from 2002 to 2009.
RGM Industrial Services GmbH
RGM Industrial Services GmbH, the third RGM pillar, is a specialist service provider for holistic technical and infrastructural management of complex industrial sites.
So RGM offers the complete range of service covering all aspects of technical, commercial and infrastructural building management.
RGM's basis for growth over the coming years will most likely come from expansion into other European countries. "In view of the needs of our internationally active clients and growing market demands, we are implementing gradual internationalisation of RGM" explains Lange and adds: "In view of the growing concentration process and fall in margins, accompanied by declining returns on the German market, it has become increasingly important to create new markets and to establish oneself on an international level." At the same time, foreign business also bears considerable risks that have to be controlled.
RGM is already present in selected European markets. For example, back in 2010 we established the joint venture RGM TURKEY A.S. together with NUROL Holding Inc., Istanbul. A year later, RGM acquired majority shares (80%) in the Spanish Grupo Gestión Global (GGG), Madrid, through its 100% Spanish holding company RGM SPAIN Facilities Management S.L. At the turn of the year 2011/2012, RGM Facility Management Schweiz AG, Bern, a holding company of the RGM Facility Management GmbH, acquired the facility management services business unit of Ascom (Switzerland) AG in Bern.
In total, more than 120 RGM employees manage a GFS of more than 500,000 m² in other European countries. "Foreign activities will make up around 10% of overall output in the 2012 fiscal year", Lange estimates.
The RGM Group is still interested in acquiring small and medium-sized companies and plans to expand into the CEE region (Central and Eastern Europe). "The RGM Group mostly offers only technical facility management outside Germany, whereby its own contribution is also relatively high abroad. In the field of infrastructural facility management we cooperate locally with external partners", explains Lange.
Besides economically expedient building management, ecological and sustainable services are increasingly in demand, which RGM offers under the label REAL GREEN. RGM certifies future-oriented buildings through its consulting subsidiary fmsc GmbH – Facility Management and Services Consulting.
"Thanks to its broad range of services, its commitment to sustainable building management, its expanded quality awareness and its successful foreign activities, RGM – as a "FM think tank" – can develop customer and industry specific concepts and strategies and identify holistic optimisation potential in order to maintain the value of buildings and systems in the long term", the company boss emphasises.