The Al Habtoor Leighton Group (HLG) has entered into a Heads of Agreement with ISG PLC, a leading UK-based fit-out construction company, to merge their respective interior fit-out businesses to focus on the growing UAE and greater GCC markets.
Al Habtoor Interiors will merge with ISG's Dubai-based project management company to form a new company, to be known as Al Habtoor ISG (HISG), which will quickly become one of the region's leading interior fit-out companies.
In support of anticipated growth the parties will jointly invest up to AED 80 million in the venture over the next three years.
The joint venture will focus on providing:
- Integrated fit-out solutions in combination with HLG's building capabilities;
- Project management and associated consultancy services; and
- Interior fit-out contracting to the retail, hotel, residential and corporate sectors and to ISG's multi national clients active in the region
David Savage, Managing Director of HLG, said:
"This is an important development for HLG that represents the ability for us to grow and develop the interiors capability that Al Habtoor Interiors has successfully built up over the years, and another step in our plans to become a full-service, turnkey contractor.
"ISG is a leader in the interior fit-out industry and we're delighted that we've been able to reach agreement with them to establish this exciting new company.
"HLG's existing workload and long list of prospective projects will ensure that HISG has immediate access to a large range of opportunities in this region."
David Lawther, Chief Executive of ISG, said:
"We are extremely excited by this partnership - this is a unique opportunity for our business in the Middle East to take a quantum leap forward and to continue to expand ISG in targeted marketplaces overseas.
"We are partnering with one of the Gulf's leading construction firms with unrivalled access and opportunities in a region where demand for our fit out capabilities is forecasted to grow strongly," he said.
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About Al Habtoor Leighton Group (HLG)
HLG was established in September 2007 following the merger of Al Habtoor Engineering, and the Gulf operations of Leighton International. The new entity immediately became the UAE's largest construction group, with revenue of over AED6 billion in 2007. HLG currently has around AED15 billion of work in hand spread across the UAE and Qatar, and is anticipating further strong growth over the next three years.
Leighton International is part of the Leighton Group, Australia's largest project development and contracting group with annual revenues exceeding US$10 billion.
For further information on: Al Habtoor Engineering, please visit: www.habtoorengg.ae
Leighton International, please visit: www.leightonint.com
Leighton Group, please visit: www.leighton.com.au
About Interior Services Group (ISG)
ISG PLC, the £1bn plus turnover UK listed company, delivers award-winning new build, refurbishment and fit-out services internationally with operations in the UK, Europe and Asia. The Company is listed on the London Stock Exchange and headquartered in the UK.
As one of the most established and respected companies in the fit-out construction industry, ISG has a wealth of experience working across a variety of sectors, locations and project values up to £100 million. In the six months ended 31 December 2007, ISG had a turnover of £521m and the Group has recently been mandated on industry leading projects such as the refurbishment of the Royal Festival Hall and the new Eurostar Terminal at St Pancras station.
ISG established an office in Dubai offering project management and other fee-based consultancy services to clients such as Standard Chartered Bank, Exxon Mobil, Emaar and ABN Amro in May 2006. ISGD has recently been licensed to provide fit-out construction services in the UAE.
For further information on: Interior Services Group, please visit: www.isgplc.com
For further information contact:
Chris Gordon
Leighton International
m: +971 (0) 50 6549 415
Chris.gordon@leightonint.com
© Press Release 2008
