EBRD Financing Boosts Georgian Property Sector
OREANDA-NEWS. EBRD is investing 57.6 million to support the Georgian Reconstruction and Development Company (GRDC) in its programme to bring international standards of real estate development to commercial property projects in the Georgian capital of Tbilisi, the EBRD press service reported.
With a loan of $42.6 million and the purchase of a 21 percent stake worth $15 million, the EBRD financing will assist the GRDC in the construction, refurbishment and operation of four commercial properties: two office buildings, a shopping centre, a railway station. The facility is EBRD's first direct financing in Georgia's property sector.
Founded in 2004 by three businessmen Mamuka Khazaradze, Badri Japaridze and Bob Mejer, GRDC is one of the most prominent commercial and residential property developers in Georgia with properties both in the centre of Tbilisi and in suburban areas.
Michael Davey, EBRD Director for the Caucasus, Moldova & Belarus, said the Bank is looking forward to supporting GRDC's aim of introducing international standards of real estate development in the city while fully respecting the existing Tbilisi architecture. This project will have a strong demonstration effect to other investors seeking to attract international financing to this booming sector.
Mamuka Khazaradze, one of the co-owners of GRDC, said we welcome the EBRD's cooperation which will significantly contribute to our efforts to supply quality product to the Georgia's emerging real estate market. It will also help in the transfer of skills and know-how to the local economy during the construction, implementation and management of the projects.
The EBRD, one of the largest private sector investors in Georgia, has to-date signed a total of 72 investment projects in the country covering energy, transport, agribusiness, general industry and banking for a total commitment of almost euro 400 million.
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