Opportunity in a strategic location in the country capitalThe Business
The shareholders of the Company, a Special Purpose Vehicle that holds 51% of the voting right and assets of a 56,000 sqm commercial real estate project in Tbilisi, Georgia (“Project”), plan to dispose of the Company. The Company:
owns 51% of the shares of a 1.4 ha plot of land strategically located in the center of Tbilisi, Georgia.
provides the financing, project management and board leadership of both the Project and companies related to the ownership of its assets.
The land was acquired in January 2009 for a price of USD 29.5m. The acquisition was financed by the minority shareholder as an equity contribution. There is no debt attached to the Project nor to the land, nor to the group of SPV companies. The Company has a shareholder agreement with the minority shareholders, enabling the Company to decide, control and manage the project execution and financing.
Market
The total Project market value is estimated at USD 250m, mixed use of commercial and offices. The transaction proposition might consist of:
Sale of 100% of the the Company.
Partial stake purchase of the Company along with a capital raise/services delivery. Use of proceeds for the capital raise includes:
Project and Company management;
Concept definition and authorizations;
Pre-commercialization;
Bank financing set-up.
This is a typically opportunistic investment, offering the potential for 100%+ IRR. The investment is attractive due to:
Strong local partners;
Strategic location in Georgia;
Unleveraged asset, enabling room for bank financing and “time to market” control
Sector: Real EstateSegment: CommercialRegion: EuropeFinancing Size: $1m to $5mContact: Philippe Der Megreditchian
Company: OLMATelephone: +33 6 03 88 30 13Email: [email protected]