Crowie Holdings, a wholly black owned integrated property and construction company, was founded by brothers Rowan and Clinton Crowie in June 2000. It was formed with minimal capital and began as a project management consultancy.
The timing was excellent: the economy was turning around and the fledgling company soon acquired projects from the department of public works. A merger followed and resulted in a name change to Focus Project Management, falling under an umbrella company, Crowie Holdings. The merger provided the young company with increased resources and capacity and the company soon started taking on larger projects, which included the retail terminal and multistorey parkade at OR Tambo International Airport.
Crowie Projects, meanwhile, was restructured to become a property development company as it started developing opportunities for clients. In its early years, the company did a significant amount of work for the Public Investment Corp, which had inherited a number of retail and office facilities from the old Government Pension Funds. The buildings were redesigned in turnkey projects.
The company also involved itself in retail developments in former township areas as retailers sought to get closer to their core markets. It also started developing its own opportunities, including student accommodation at universities, though initially all construction work was outsourced.
Today, the company has been structured in such a way that Crowie Projects forms the head of the value chain, and specialises in retail, commercial, residential and industrial property developments. Implementation of these projects is spearheaded by the group's Enza Construction, in conjunction with Focus Project Management. Together, these companies ensure that projects are completed with agreed project parameters.
Another wholly owned subsidiary of Crowie Holdings, Crowie Concessions, was formed more recently to enable the company to participate in public private partnership (PPP) opportunities. Subsidiaries of Crowie Holdings such as construction, project management and facilities management are given leads for subcontracting work through Crowie Concessions.
Crowie Holdings is a noteworthy shareholder in Sanyati Holdings, a civil construction group listed on the JSE. The alliance gives the organisation access to civil construction opportunities, further broadening its area of expertise.
From humble beginnings and just three people the group has grown to employ more than 150 people and boasted turnover of R752m for the 2008 financial year. This figure is expected to grow to more than R1bn in 2009.
Chairman and CEO Rowan Crowie attributes this growth to a number of factors. The company's BEE credentials - it is rated as a level 3 BEE contributor and is 100% black owned - have undoubtedly played a part in the company's success by making government initiatives available. He also points to good relationships with suppliers and competitors as another crucial component.
"We tend to collaborate more with our competitors than compete with them," he says. The company has embarked on a number of joint ventures on large projects with companies such as Murray & Roberts Construction, Group Five and Grinaker LTA.
Crowie describes the company as highly entrepreneurial but admits that with growth has come the implementation of more formal structures. "I think we have a reasonable balance between entrepreneurial flair and good governance."
As the firm has grown and matured, Crowie's role has changed. "Considering the synergies of the group and how best to market them has been a source of great personal satisfaction," he says.
Prior to the establishment of Crowie Projects, Crowie headed the Property Division of the SA Reserve Bank. There he was responsible for the development and management of the bank's major capital projects, the facilities management of the bank's capital assets and the property management of a property portfolio valued at R3,5bn. He also has construction industry experience with Murray & Roberts, where he managed a number of prestigious construction projects. An astute strategic thinker with a formidable knowledge of the property and construction industries, Crowie is the group's majority shareholder.
An aggressive growth strategy
Investments are a core strategy for Crowie Holdings and an essential component of the group's growth and sustainability. In 2007 the company sold its 51% stake in Ruthcon Civil Contractors to Sanyati Holdings, a JSE-listed construction group. This resulted in Crowie Holdings acquiring a significant shareholding in Sanyati Holdings.
Crowie Holdings has plans to acquire stakes in companies involved in asset, property and facilities management, which will mean it is involved in projects on a long-term basis, building its asset base.
In particular, Crowie Holdings will be a promoter of a privately held property fund focused on commercial, industrial and retail properties as well as redeveloping underperforming assets on a turnkey basis. An asset management company will be established to manage the property fund.
Another future investment is Crowie Rail, a rail consultancy offering a wide range of services including strategic rail network planning, railway project management, and rail construction expertise. "We already have extensive group experience in the construction and turnkey development management of subterranean rail infrastructure," says Crowie Rail MD Fred Pietersen, who is also a director at Crowie Projects.
"We have no intention of being passive shareholders in any of our investments," says Crowie. "Our strategy is to be actively involved in our investments."
Though SA-based projects have to date been the company's core focus, Crowie Holdings will be exploring opportunities further afield. "Our project management company, Focus Project Management, has already identified a number of opportunities which, in turn, provides opportunities for other subsidiary companies to get involved," he says.
Opportunities exist in Zambia, Swaziland, Namibia and Mozambique. "Understanding another country's dynamics is a learning curve," says Crowie. "However, experience has taught us that our approach works so it's about implementing this proven approach while taking local issues and sensitivities into consideration."
Peach Mqingwana and Sim Pillay
He points out that though Africa offers huge risks, the rewards are commensurate. "There are big opportunities in Africa and the further north you travel the less competition you face. To manage the risks, our strategy is to partner companies who already have a presence in those countries, hence we are working with Liberty Properties in Zambia, for example."
Crowie's vision for the firm is continued sustainable organic growth and acquisitions where it makes sound business sense. "I have no doubt that the next couple of years will be challenging due to the global economic climate.
"But overall, Crowie Holdings and its subsidiaries are well placed to weather any economic downturns. Also, we have a proven track record, which will stand us in good stead."
He predicts that the residential sector will be flat for some time and that on the retail development side, retailers will become more selective about which retail developments they wish to have a presence in. "Our approach is to cherry-pick developments," he says.
The biggest challenge facing Crowie Holdings will be the availability and cost of capital. "The way in which we manage our cashflow is crucial." It's also for this reason that the company tends to partner landowners rather than choose the more costly land acquisition route.
WHAT IT MEANS
 Boasts turnover of R752m for 2008
Plans to increase this to more than R1bn
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According to group financial director Andre de Wet, property developments require significant amounts of seed capital before banks are prepared to provide any development finance. The sale of Ruthcon Civil Contractors to Sanyati Holdings in 2007, for instance, generated sufficient capital for the company to finance upcoming large-scale projects. However, ultimately it is imperative that cashflow is well managed.
"Crowie Holdings is in the fortunate position of being in a financially sound position and once the R830m Bridge City development is finalised it will give the company significant profits," he says.
"We also have a pipeline of new projects that will stand the company in good stead and enable us to successfully weather the economic downturn."
On the support services side, the firm has a Group Services Division, which offers finance, marketing and human resources support to all companies within the group and ensures maximum efficiencies.
Peach Mqingwana is group human resources manager, while marketing is headed by group marketing executive Sim Pillay.
