Project description
and objectives:
|
The proposed project is an equity investment into the company which holds a
portfolio of real estate development projects in the Republic of Georgia.
|
Transition impact:
|
The project transition impact will derive from the following key areas:
-
The investee company will develop local retail, office and residential real
estate sectors, transferring skills and know-how to the local economy during
construction, implementation, and management of the Fund’s sub-projects
through backward linkages in the local construction sectors.
-
The investee company will also foster the development of both primary and
secondary markets in the Republic of Georgia. The company’s capital will be
focused on developments in the capital and its suburbs, thus improving and
expanding the country’s markets for office space, retail facilities and
residential properties.
-
The Bank’s participation is expected to stimulate the interest of other
international investors of institutional level.
|
The client:
|
Georgian Reconstruction and Development Company N.V. (the “GRDC”), a
Netherlands Antilles registered company, organised to acquire, develop and
operate real estate in the Republic of Georgia.
|
EBRD finance:
|
The lower of USD 15 million or 20% of the total equity.
|
Total project cost:
|
The total long-term capitalisation of the company is expected to reach USD
150-200 million.
|
Environmental impact:
|
Screened FI. Environmental due diligence to date has confirmed that the first
four sub-projects of the Fund are unlikely to be associated with any
significant past environmental liabilities. The environmental due diligence
on the four sub-project has also indicated potential issues including safety
of the construction material of the existing buildings, cultural and
historical heritage conservation of the buildings and safety requirements
during the refurbishment work. In order to further examine the issues, a
site assessment is underway. The Fund will be required to implement the
Bank’s Environmental Procedures for Property Funds including compliance of
each sub-project with, at a minimum, national environmental, health, safety
and labour standards and requirements as well as submission of a annual
environmental and social report to the Bank.
|
Technical
cooperation:
|
None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
|
Company contact:
|
Tbilisi: Irakli Kilauridze, CEO / GRDC N.V.
T: +995.32.942207, irakli@grdc.ge
London: Daniel Geoghegan, Partner, Argo Saint George LLP
T. +44 (0) 207 493 2797, dg@argo-sg.com
|
EBRD contact:
|
Julia Stepanova, Operation Leader: stepanoj@ebrd.com
|
Business opportunities:
|
For business opportunities or procurement, contact the client company.
|
General enquiries:
|
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
|
