REAL ESTATE PROJECTS Disclaimer
In this document, "presentation" shall mean and include the document that follows, any oral briefing and any question-and-answer session in connection with it. By attending or reading the presentation, you will be deemed to have agreed to the obligations and restrictions set out below.
The sole purpose of this presentation is to provide information on projects (the “Projects”) of Development Solutions LLC (the “Company”) in order to assist you in assessing your interest in these Projects. This presentation is strictly private and confidential and must not be disclosed to any other party. It is not an offer or invitation to the public and should not be reproduced or circulated or used for any purpose other than assisting with the assessment of the Projects.
This presentation does not purport to contain all the information that may be required by the recipient to assess its interest in the Projects. The recipient should conduct its own independent investigation and assessment as to the validity of the information contained in this presentation, and the economic, financial, regulatory, legal, taxation, stamp duty and accounting implications of that information. The recipient represents that it is not relying on any recommendations or statement of the Company or its representatives. Except as required by law, the Company and its respective directors, officers, employees, agents and consultants make no representation or warranty as to the accuracy or completeness of the information contained in this presentation, and take no responsibility under any circumstances for any loss or damage suffered as a result of any omission, inadequacy, or inaccuracy in this document.
This presentation may contain certain forward-looking statements, forecasts, estimates, projections and opinions (“Forward Statements”). No representation is made or will be made that any Forward Statements will be achieved or will prove to be correct. Actual future results or operations could vary materially from the Forward Statements. Similarly, no representation is given that the assumptions disclosed in this document upon which the Forward Statements may be based are reasonable. The recipient acknowledges that circumstances may change and the contents of this document may become outdated as a result.
This presentation does not constitute an offer, invitation or recommendation. The information contained herein does not, and will not, form any part of a contract or offer for sale. Furthermore, it does not constitute an offer capable of acceptance and no binding commitment may be entered into on the basis of the information contained herein.
This presentation, including this disclaimer, shall be governed by and construed in accordance with Georgian law and any claims or disputes, whether contractual or non-contractual, arising out of, or in connection with, this presentation, including this disclaimer, shall be subject to the exclusive jurisdiction of the Georgian Courts. CONTENTS
SECTION PAGE
1. Highlights 3
2. General Macroeconomic Overview 5
3. Georgia Real Estate Industry Overview 12
4. Silk Road Group Company Background 16
5. Silk Road Group Assets 18
6. Silk Road Group Development Projects 21 1 HIGHLIGHTS Section SILK ROAD GROUP FUNDAMENTALS
Fundamentals - A very positive storyline for Silk Road Group both in terms of existing real estate assets and development pipeline projects. Silk Road Group has a very clear real estate strategy to develop prime real estate across Georgia with striking architectural designs and in so doing maximize the asset value, stakeholder internal rate of return and net present value of the projects by ensuring the “highest and best use” for the real estate. The Silk Road Group real estate development strategy is also underpinned by a strong consideration to the environmental impacts of the real estate developments throughout Georgia.
Key Asset Locations - One of the trading fundamentals is location – the Silk Road Group existing hotel assets (Radisson Blu Batumi and Radisson Blu Iveria Tbilisi have exceptional city center locations. The Silk Road Group development projects also have prime real estate locations in Tbilisi, Batumi and Tsinandali with detailed case studies presented in sections 5 & 6 of this information memorandum.
Key Product - All assets are of very high quality and can be considered “core assets”. They represent a secure investment.
International Brand - The strong international hotel management brand ensures the existing hotels prime status in the region.
Exceptional timing - Timing is key when investing in real estate and there are positive fundamentals for Georgia and real estate in Georgia.
Ease of doing business in Georgia - Georgia is an attractive and relatively safe country for global investors. Ranked globally in the top 10 countries for “ease of doing business” according to the World Bank survey in 2014 of 189 countries, Georgia also has zero restrictions on currency convertibility or repatriation of capital & profit and zero capital gains tax, personal income tax for interest, dividend and royalty profit tax of only 5%.
3 GENERAL 2 MACROECONOMIC Section OVERVIEW GEORGIA - LOCATION
Georgia is a country in the Caucasus The country is a member of the United region of Eurasia. It’s total area is Nations, the Council of Europe, the World 69,700 square kilometers. The capital is Trade Organization, the Organization of the Tbilisi. Black Sea Economic Cooperation, the Organization for Security and Cooperation in Located at the crossroads of Western Europe, the Community of Democratic Asia and Eastern Europe, it borders to Choice, the GUAM Organization for the west with the Black Sea, to the north Democracy and Economic Development and with Russia, to the south with Turkey the Asian Development Bank. and Armenia and to the southeast with Azerbaijan. On the 27th of June 2014 the EU and Georgia is a unitary, semi-presidential Georgia signed the unprecedented republic with the government elected Association Agreement, which includes a through a representative democracy. Deep and Comprehensive Free Trade Area (AA/DCFTA). The Agreement significantly deepens political and economic ties with the EU under the Eastern Partnership. Association Agreement with European Union 3.7 million Favorable POPULATION $ 3 681 GDP PER Business Climate CAPITA
Growing Real Estate Market
Attractive $ 882 million 2.2 million TBILISI RESIDENTIAL R.E. INTERNATIONAL Tourist Destination ANNUAL MARKET VOLUME TOURISTS IN 2014 5 GEORGIA - KEY FACTS
20 70% FACT SHEET 18 17 60% 18 17 16 16 16 Population (2014) 3.7 million 16 50% 14 Proportion of Urban Population in Total 40% 57% 14 13 (2014) 12 30% 12 11 10 Nominal GDP (2014) 16.5 billion USD 20% 10 10% FDI (2007-2014) 9 781 million USD 8 0% 6 Internet Penetration in Georgia (2013) 43% -10% 4 -20% Tbilisi’s Share of Internet Users (2012) 64% 2 -30% Country Rating BB-/stable; Ba3/positive 0 -40% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Nominal GDP, US$b GDP growth Georgia GDP growth Russia GDP growth Azerbaijan ► Georgia’s economy suffered during civil unrest in the 1990s but since 2000, with the support of the IMF and the World Bank has controlled inflation and increased GDP growth.
112 CPI ► The Rose Revolution of 2003 brought in significant change 110 110 during 2003-2007. The number of different types of business 109.2 109.2 108.5 taxes reduced from 21 to 7; increase in tax revenues from 108 107.1 USD 469 mln to USD 2.2 bln; FDI grew from USD 450 mln in 106 2005 to USD 2 015 mln in 2007; average GDP growth was around 10% and the level of corruption has decreased due to 104 103.1 the legal restrictions and Government anti-corruption actions.
102 101.7 ► GDP growth remained in the 9-12% range in 2005-2007, 100 99.5 spurred by gains in the industrial and service sectors. In 99.1 98 2006-2008 Georgia was named the world’s top reformer by the World Bank. 96 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ► Georgia achieved robust economic growth between
Sources: World Bank, National Statistics Office of Georgia 2003-2012, averaging 6.1% annually following structural reforms that stimulated capital inflows and investment.
► In the end of June 2014 Georgia and the European Union signed Association Agreement including Deep and 6 Comprehensive Free Trade Area (DCFTA). GEORGIA - COUNTRY PROFILE
Economy Government
► Georgia achieved robust economic growth between 2003-2014, ► Georgia is a democratic, semi-presidential republic whereby the averaging 6.3% annually, following structural reforms that President is a Head of the State and the Prime Minister is a Head stimulated capital inflows and investment. of the Government.
► The reforms helped to improve the business environment, ► In June 2014 the EU and Georgia signed an unprecedented strengthened public finances, upgraded infrastructure facilities and Association Agreement, which includes a Deep and liberalized trade. Comprehensive Free Trade Agreement.
► Growth was also supported by increased foreign direct investments (FDI) and was driven by capital accumulation and sound use of excess capacity. Population
► The Georgian population is approximately 3.7 million people. This Tax System figure has grown since 2006 by 2%.
► About 57% of the total population lives in urban areas and the ► Georgia has simplified its processes and has reduced the number urbanization rate has been increasing since 2006. of taxes from 21 in 2004 to only 6 today. — Value Added Tax - 18% — Property Tax - 1% — Income Tax - 20% — Customs Tax - 0%, 5% or 12% Tourism — Profit Tax - 15%
► These improvements have made Georgia one of the most attractive tax regimes globally. ► As of 2014 the amount of tourist spending in Georgia amounted 14.6% of the GDP which is 239% increase compared to the 2007 ► Since 2008 Georgia has initiated and concluded Avoidance of with the CAGR of 27%. Double Taxation Agreements with its major trade partners. Currently Georgia has 46 active agreements. Additional reforms ► Travel & tourism constitutes approximately 58% of Georgia’s are projected to decrease tax rates even further in the next few service export which makes it strategically important for further years. development of the country.
7 GEORGIA - EASE OF DOING BUSINESS
► Georgian government efforts to reduce Ease of Doing Business, 2015 Index of Economic Freedom, 2015 corruption in public and private sectors have significantly improved Georgia’s ranking in the World Bank’s Doing Business Survey. Singapore 1 Rating Among Hong Kong 1 Rating Among ► The expansion of transit potential, financial Denmark 4 189 Countries Denmark 11 178 Countries intermediation, transport and communication infrastructure, hotels and restaurants have United States 7 United States 12
contributed to growth in the services industry. United Kingdom 8 United Kingdom 13
► At present Georgia enjoys free trade Germany 14 Germany 16 agreement with Turkey and nearly all CIS Georgia 15 Georgia 22 countries. Georgia is eligible for Most Favored Nation (MFN) treatment from all the Armenia 45 Armenia 52 WTO member states and is the member of Turkey 55 Kazakhstan 69 WTO since 2000. Russian Federation 62 Turkey 70 ► The Association Agreement between Georgia Kazakhstan 77 Azerbaijan 85 and the European Union, signed in June 2014, includes the setting up of a Deep and Azerbaijan 80 China 139 Comprehensive Free Trade Area (DCFTA). China 90 Russia 143
The DCFTA has been enacted since Ukraine 96 Ukraine 162 September 2014, therefore products or
services produced in Georgia can freely Sources: Global insight, National Statistics Office of Georgia, World Bank, The Heritage Foundation access to the EU market with more than 500 million consumers.
► World Bank report stated that Georgia is: The World Bank's Doing Business Survey According to The Heritage Foundation, places Georgia among the countries showing Georgia has advanced its score by 2.6 points — one of the economies that has done most the most dramatic improvement in the fight over the past five years. The country has to narrow the gap with better business against corruption. The implementation of demonstrated improvements in five of the regulatory practices since 2009; economic and institutional reforms have economic freedoms, including freedom from — one of the world's fastest-reforming contributed to this improvement. corruption, the control of government economies. By the latest survey it stands on 15th position spending, business freedom, monetary among 189 countries. Georgia ranks as 1st in freedom, and investment freedom. Achieving property registration, 3rd in dealing with its highest score ever in the 2015 Index, construction permits, 5th in starting a business Georgia has advanced further into the category th of “mostly free”. 8 and 7 in getting the credit. GEORGIA - FOREIGN DIRECT INVESTMENTS
Foreign Direct Investments (FDI), mln USD ► Georgia achieved robust economic growth between 2003-2012, averaging 6.1% annually following structural reforms that stimulated capital inflows and investment. 2,500 100% 2,015 80% ► The reforms helped improve the business 2,000 60% environment, strengthened public finances, 1,758 1,564 upgraded infrastructure facilities and 40% 1,500 1,190 20% liberalized trade. 1,117 912 942 0% ► Growth was also supported by increased 1,000 814 foreign direct investments (FDI) and was 658 -20%
driven by capital accumulation and sound 500 -40% use of excess capacity rather than by net -60% job creation, with productivity gains 0 -80% concentrated mainly in the non-tradable 2006 2007 2008 2009 2010 2011 2012 2013 2014 sectors. GDP per capita increased from USD 920 in 2003 to USD 3 680 in 2014 (in FDI Growth to previous year current prices).
FDI by Major Investor Countries FDI by Major Economic Sectors FDI by Major Regions
Netherlands Manufacturing Azerbaijan Tbilisi Energy sector 12% China 13% 12% 6% 21% 5% 4% Adjara United States Construction 4% 4% 6% 11% 5% Luxembourg Hotels and restaurants 9% 8% Samtskhe-Javakheti 6% 2014 United Kingdom 2014 2014 20% Transports and 6% 18% communications Russia Samegrelo-Zemo Svaneti 10% Real Estate 76% and Guria 12% Panama 25% 7% Financial sector2 Others Turkey
Other coutries Other sectors
Sources: Ministry of economy and sustainable development of Georgia, National Statistics Office of Georgia 9 GEORGIA - ATTRACTIVE TOURISM DESTINATION
Brief Outlook on Tourism International Tourism Receipts
► According to World Travel Council, the direct contribution of Travel & Tourism in Georgia to GDP was 2,000,000 60% 1,800,000 5.9% as of the end of 2014. Georgian government tries 50% to develop the sector further, since Georgia possesses 1,600,000 1,400,000 40% attractive tourist destinations. 1,200,000 1,000,000 30% ► Tourism appears to be profitable business for 800,000 Georgians, since receipts from international tourists has 600,000 20% been growing steadily over the last 9 years. 400,000 10% 200,000 - 0% ► Travel & tourism constitutes approximately 58% of 2007 2008 2009 2010 2011 2012 2013 2014 Georgia’s service export, which makes it strategically important for further development of the country. Receipt, thousand USD Growth of international arrivals %
► Due to the governmental efforts, the competitiveness of Georgian tourism on the world market increased by seven positions, ranking 66th among 140 nations in the Travel & Tourism Competitiveness Index in 2013, as compared with 2011 (73rd position). In addition, Structure of International Arrivals according to “Rough Guides” Georgia ranks 5th among the top ten countries to visit in 2014.
Turkey Governmental Support of the Sector 10% 3% 27% Azerbaijan
► The large tourism promotion campaign helped to 15% Armenia +266% increase tourist numbers by 38% in 2011. The 2014 Government’s efforts to promote Georgia as a tourist Russia destination helped to raise number of tourists by 57% 2014 and 22% in 2012 and 2013 respectively. 22% 23% Ukraine Growth in international 2009 arrivals ► As of 2014, the amount of tourist spending in Georgia Other amounted 14.6% of the GDP, which is 239% increase compared to the 2007, with the CAGR of 27%.
10 Source: Georgian National Tourism Agency, BMI, World Travel Council 3 GEORGIA REAL ESTATE Section INDUSTRY OVERVIEW RESIDENTIAL MARKET OVERVIEW
Factors affecting demand Population
► Average household size was around 3.6 ► Over last 10 years, Georgian population was ► Population of Tbilisi is 1.18 million that makes people which is larger than in comparable growing at the average rage of 0.4% despite around a 26% of total Georgian population, countries. The average household in Tbilisi is setbacks in late 2000-es and in 2013. Hence and this share continue growing as Tbilisi even higher at 3.7 persons, compared to population grew around 4% over the last population growth is 0.87% over last 10 Europe, where the average household size decade reaching 4.49 mln people in 2014, years - over 2 times the national average has steadily decreased and stabilized at however the last census conducted in the end national. This illustrates continuous trend for around 2.4 persons. of 2014 showed a 20% decrease to 3.7 mln migration of regional population to the capital. people.
Average Household Size by Country Tbilisi's Population, in Thousands
Georgia 3.6 1,175 1,173 1,171 China 3.0 1,162 1,152 2.8 Average 1,137 1,137
Croatia 2.8
Poland 2.8 1,101
Russia 2.7
Hungary 2.6
Latvia 2.4 2007 2008 2009 2010 2011 2012 2013 2014
Source: National Statistics Office of Georgia, Eurostat 12 RESIDENTIAL MARKET OVERVIEW
Factors affecting demand Income
► Average monthly income in Georgia has been steadily increasing at ► During 2013, the volume of issued mortgage loans amounted to USD the CAGR of 12.61% over the period of 2004-2013. However, average 416 mln which is the double the level of 2012 and 31% higher than income remains low as the country is still classified by the World Bank 2011. The largest proportion of mortgages in 2013 was issued in as a lower middle-income country. Recent growth levels are between December (around USD 149 mln), due to the marketing campaigns of 14% and 19% annually and the current average monthly income is commercial banks and reduced interest rates. In 2014 the growth rate almost GEL200 double than in 2008. Average income in the Capital stands at 30% and issued mortgages amounted to USD 541 mln. Tbilisi far exceeds the regions. Average Monthly Income Per Capita, in GEL Mortgage Lending, in mln USD 246 218 195 179 893 147 155 686 560 103 115 523 541 416 416 314 225 208
2006 2007 2008 2009 2010 2011 2012 2013 2010 2011 2012 2013 2014
Issued mortgages Total outstanding
► Currently the average interest rate is 10%, which is still high when ► Due to naturally high savings rate population deposits grew over X compared internationally. It is important to note that with 9.5% rental times in 2010-2014 to which compares to X% of GDP. At present yield rate, mortgage payments are lower than rental costs with down population has only two major saving options – bank deposits or real payment of 30%. estate in Tbilisi. While bank deposits are liquid , real-estate much higher return. Average Rental Yield vs Annual Interest Rate on Long-term Individual Deposits, in Millions GEL Deposit Q3 2014 1,382 1,154 9.5%
7.6% 755 563 426
2010 2011 2012 2013 2014 Average rental yield, USD Annual interest rate on long-term deposits, USD 13 Source: National Statistics Office of Georgia; National Bank of Georgia HOSPITALITY MARKET
Supply on Tbilisi Hotel Market ► Tbilisi got significant share of the remarkable growth of international visitors to 14,000 160 Main Market Players Georgia (3.5 times over 5 years). The number of visitors grew almost 4 times in 12,000 150 2007-2013. 10,000 8784 140 ► The growing demand for hotels was met 7574 8,000 with increasing number of hotel rooms and 6189 130 beds. The capacity growth is estimated to 6,000 4075 be 42% in 2013-2015. 3591 120 4,000 3036 ► The occupancy rate is quite high at 75% 2,000 110 with International hotel brands and stays high, while local brands have occupancy 0 100 2013 2014 2015 around 50%. ► ADR is highest with International Upscale number of rooms Brands suggesting demand in this segment number of beds of the hoteling market. number of accomodation units
Occupancy rate in Tbilisi 2014 ADR in Tbilisi 2014 (USD excl. VAT)
250 80% 74% 75%
203 200 58% 60%
150 42% 127 40%
100 80
49 20% 50
0 0% International International Local Upscale Local Budget/ International International Local Upscale Local Budget/ Upscale Brands Midscale Brands and Middle Class Economy Class Upscale Brands Midscale Brands and Middle Class Economy Class
14 Source: STR GLOBAL, CW|VB Hospitality Services 4 SILK ROAD GROUP Section COMPANY BACKGROUND SILK ROAD GROUP
The Silk Road Group is one of the leading private investment groups active on the Caucasus and Central Asian region with participations in different sectors of the Georgian economy, including transportation, trading, real estate, retail, tourism and telecommunication
The Silk Road Group was established in Georgia in the early 1990’s following the collapse of the former Soviet Union. Since its inception, the Silk Road Group has enjoyed steady growth by revitalizing traditional trade routes, which had been neglected for decades. SRG’s focus on meeting the needs of a multinational client base has allowed it to grow into a global organization. SRG now has client service professionals in Asia, Europe, and North America.
The company started activity with transportation and trading of commodities in the Central Asian and Caucasus region. SRG has established itself as a leader in the rail transportation of liquid and dry cargo in the Central Asian and Caucasus region.
As structural and tax reforms gained the solid momentum in Georgia in 2004, SRG started to expand its business into various industries, such as Infrastructure, Real Estate, Banking, Trade, Telecommunications and Energy. Jointly with its partners, SRG has facilitated investments of around USD 0.5 billion onto the Georgian economy over the last ten years.
16
5 SILK ROAD GROUP Section ASSETS
ASSET DESCRIPTION
RADISSON BLU, BATUMI Situated in a prime city location near Batumi city center and close to the stunning Black Sea with excellent hotel and branding visibility. Traverse the area via convenient transport options, or walk to nearby sights like the bustling Seaside Boulevard. The hotel has 168 guest rooms, varying from 33 Sq.m for standard room size to 86 Sq.m executive room size. The hotel offers extensive dining facilities including Medea Restaurant and Bar on the ground floor and Clouds Restaurant & Bar on 19th floor. The Grand Ballroom comfortably accommodates 350 attendees in theatre-style seating or 150 guests banquet style. The ballroom can also be separated into three smaller sections, offering convenient flexibility. The hotel offers branded Anne Semonin Wellness & Spa Center comprising of 1 650 Sq.m
IVERIA CASINO at the RADISSON BLU, BATUMI Located at the lower level of modern Radisson Blu Hotel, with entrances from street and the hotel, a modern, bright and welcoming Iveria Casino operates 74 slot machines, 14 table games and 2 touch bet roulettes. It is the first casino most visitors come to when they approach Batumi seafront from the harbor. Gross Area Function Space Sq.m Hotel Rooms 7 800 Public Areas 3 620 Food and Beverage 1 400 Meeting and Conference Rooms 1 250 Wellness and Pool 1 650 Back of House 5 500 Total Hotel 1 220 Casino 1 580 Total Building 24 020 Total Land Plot 3 300 ASSET DESCRIPTION
RADISSON BLU IVERIA HOTEL & CASINO – THE MARKET LEADER FOR HOTELS IN TBILISI With an enviable Rustaveli avenue location in the heart of the city, the Radisson Blu Iveria Hotel, Tbilisi affords easy access to everything the capital has to offer. Guests can walk to theatres, museums, Opera House and Concert Hall. A 19-storey hotel building located in the very heart of the capital of Georgia, Tbilisi, on the Rose Revolution Square (Republic Square), in one of the most prestigious and historic districts of the city. The visibility of the hotel is excellent, as the square is located on the hilly part of the capital. It has good accessibility, as nearest metro station is 300m away, Tbilisi International Airport is 17 km (20min) and railway station is 3.3 km (7min) away from the hotel. Radisson Blu Iveria, managed by Carlson Rezidor Group was opened in 2009. Hotel offers in total 249 guest rooms -146 standard rooms, 44 superior, 43 business, 15 junior and 1 suite. All the rooms have panoramic windows that offer beautiful city views of the river Mtkvari and Caucasus mountains. Additional facilities of the hotel include: Anne Semonin Spa & Wellness, casino, bars and restaurants, conference halls (capacity 350 seats theatre style) & ballrooms, indoor and outdoor pools, health club and business center. Restaurants: concept restaurant Filini and Asian restaurant umami; Bars - Oxygen (on 18 th floor) and Surface bar.
6 SILK ROAD GROUP Section DEVELOPMENT PROJECTS SILK ROAD GROUP PROJECTS IN TBILISI ARE ALL CENTRALLY LOCATED AND CREATE A SYNERGIC LINK
Sakanela
Radisson Blu Iveria
“Metro” Congress Hall Telegraph Hotel
21 RADISSON BLU TELEGRAPH HOTEL SILK ROAD GROUP DEVELOPMENT PROJECTS – RADISSON BLU TELEGRAPH HOTEL
The former post and telegraph headquarters occupies a strategic and prestigious location at the very heart of Tbilisi, in a prime touristic and business center on Rustaveli Avenue. The 8-storey Telegraph Building also has 3 floors allocated to the basement area. The building is to be reconstructed to Radisson Blu Iveria Hotel offering 190 keys. All the technical equipment and installments, water tanks and storages for the hotel, server room and other auxiliary facilities are located in the basement area. A jazz club will also be located in the basement area with direct access from the street. The main component of the project i.e. the lodging facility will have main entrance from Rustaveli Avenue. The lobby will be placed on the 1st floor with restaurant & bar, main kitchen and meeting/conference/banqueting rooms. The second floor will accommodate standard rooms and a gym, as for the 3rd and 4th levels, these will be fully dedicated to standard, business and superior rooms. The business and superior guestrooms will be placed on the 5th floor. The top level will feature a presidential suite and penthouses.
Total GBA – 29 253 Sq.m Hotel – 17 242 Sq.m Total investment cost in USD – 31.3 mln USD Project’s implementation period – 1 years
23 CONGRESS HALL SILK ROAD GROUP DEVELOPMENT PROJECTS – CONGRESS HALL
A four-storey development to be located in the very center of Tbilisi, adjacent to the Radisson Blu Iveria Hotel. The building represents a non-residential complex and will provide world class conference facilities. The congress hall will be linked via an enclosed walkway bridge to the adjacent Radisson Blu Iveria Hotel and Telegraph Hotel, ensuring maximum convenience for guests and conference delegates. The development will have dedicated parking with 150 parking spaces and the main entrance will be located on the ground floor.
There will be between eight and twelve meeting rooms with sizes to suit all delegate requirements and there will be a pre-function facility with a floor area of over 2 200 Sq.m. The main ballroom will be 1200 Sq.m with a capacity of over 1000 guests and will feature a floor to ceiling height of 8 metres. The main ballroom will be separable into three equal areas for smaller conferences and the rooms will be accessible from the pre-function facility, the terrace and will be connected to the Telegraph Hotel along the third floor.
Total investment cost In USD – Around 13 mln USD Project’s implementation period – 2 Years
25 “METRO” ENTERTAINMENT CENTER SILK ROAD GROUP DEVELOPMENT PROJECTS - METRO
Situated on Rose Revolution Square opposite the Radisson Blu Iveria Hotel and Iveria café, “Metro” entertainment center represents a four - storey non-residential complex. Façade works of the building are already completed.
The center will accommodate several restaurants and conference/banquet halls. A Georgian restaurant will be located on the ground floor with the size of 400 Sq.m. The conference/banquet pre-function space will be 400 Sq.m. The 1st and 2nd floors are allocated to the conference/banquet hall (hosting around 500 persons) with the size of 1 500 Sq.m plus 400 Sq.m of back of house space.
There will be a lounge bar and fish restaurant with a size of 500 Sq.m, as well as exterior terraces including podium (approximately 1 000 Sq.m) which will be situated on the 3rd floor of the building.
Land – 2 247 Sq.m GBA – 4 405 Sq.m Total investment cost in USD – 8 mln USD Project’s implementation period – 1 year
27 SAKANELA SILK ROAD GROUP DEVELOPMENT PROJECTS - SAKANELA
A mixed-use project with prevailing residential and office uses, a branded aparthotel development and retail. The total area of the site totals 20 820 Sq.m and the construction area is 18 000 Sq.m. Based on the demand analysis, the project structure is defined: • Residential – 80 000 Sq.m with approximately 700 apartments; • Office – 5 000 Sq.m; • Retail – approximately 1 500 Sq.m; • 3-Star Hotel – that will comprise 200 keys The site lies on the right embankment of the Mtkvari River, within the territory of Tbilisi, approximately 500 metres from city centre. The site is situated on the parallel street of Rustaveli Ave. the city’s touristic and business centre, with most of the hotels and prestigious housing, the land is also linked to the Rose Revolution Square, where SRG’s other assets are located. This mixed-use project has good visibility and direct frontage on two streets: Javakhishvili and Sanapiro. The site has generally a rectangular shape, with inflections from the southern and east sides. There is a notable elevation of the site in relation to the road surface along the southern and western borders. This zone is considered as one of the most prestigious in the city and is distinguished by high concentration of administrative, residential properties, hospitality and elite street retail outlets. The location of the site next to Rustaveli Avenue, which is distinctive by highly developed infrastructure and is valued for its compact housing development, makes it even more attractive.
Total investment cost in USD - 50 mln USD Project’s implementation period - 4 years 29
RADISSON BLU TSINANDALI HOTEL SILK ROAD GROUP DEVELOPMENT PROJECTS – RADISSON BLU TSINANDALI
HOTEL As part of the effort to preserve Georgia’s cultural heritage and ensure that Tsinandali effectively tells its story to future generations, the Silk Road Group will renovate the property, introducing modern amenities while preserving its most important historical features. Distance from Tbilisi to the House Museum of Alexandre Chavchavadze in Tsinandali is 104 km, which is 1h 50 min driving. The renovation is taking into account all relevant factors, including: • The main house, hotel and museum; • Landscaped nature trails for walking, jogging and biking trails; • Helipad; • Winery; • New visitor center • Local environmental, climate and structural characteristics will be absorbed into the architectural of the finished products; • Facilities for conference and banqueting, private dining and special events; • An emphasis on eco-tourism • Local Georgian constituents will be involved and consulted in all stages of planning, preparation and execution of the Tsinandali development project; Radisson Blu Hotel currently under development consists of a new building on the plot owned by Silk Road Group with provisionally 111 keys, SPA on the top floor and outside swimming pool, an old winery factory on the plot currently leased by SRG connected to the new building via glass covered bridge, which will accommodate hotel restaurant, meeting rooms, bar, library, small cinema, closed and open air ballrooms, courtyard and wine degustation areas. Total construction area is about 18 000 Sq.m. The structural works are completed.
Total investment cost in USD – 25 mln USD 31 Project’s implementation period – 2 years
TSINANDALI VILLAS SILK ROAD GROUP DEVELOPMENT PROJECTS – TSINANDALI VILLAS
Tsinandali is a heartland of Georgia’s wine region, located in Kakheti, east Georgia. The new Radisson Wine Resort at Tsinandali bridges the millennia-old tradition of wine making in the Southern Caucasus and current global trends in cultural tourism, creating a unique guest experience. Silk Road Group plans to develop the surrounding area of the Tsinandali Museum. The Group owns 11 ha. land plot adjacent to the House Museum of Alexandre Chavchavadze. The development envisioned includes 20 exclusive luxury villas – a dream house for everyone looking for a relaxing environment and the comfort of feeling at home in the cradle of wine. Apart from residences the territory will encompass the spectacular walking trails and landscaped gardens. The complex is surrounded by unique oak woods. The home owners shall enjoy breathtaking views of Caucasus Mountain Range. The residents will be offered the wine, made from local vineyards and exclusively bottled for them.
Total investment cost in USD – to be confirmed Project’s implementation period – 4 years
33
BATUMI MESKHETI SILK ROAD GROUP DEVELOPMENT PROJECTS - MESKHETI
Meskheti is a seaside mixed - use development perfectly located in Batumi, in a prominent location with excellent visibility from Rustaveli Avenue and the Seaside Boulevard. Land is surrounded by Hilton Hotel, Nuri Lake, famous Batumi Dolphinarium and the Black Sea beach.
The project consists of hotel, residential and retail components.
Total land area – 9 142 Sq.m
35 RIVIERA BATUMI SILK ROAD GROUP DEVELOPMENT PROJECTS – RIVIERA BATUMI
Located in the central part of Batumi center (Rustaveli Avenue), the development will have direct views of Batumi port and the city boulevard where all the main tourist activities are concentrated. This development involves the construction of mixed-use facilities of an integrated resort for retail, high-end residential, hotel and entertainment use; cafes & restaurants of different types of international cuisine. The offering will include marina and yacht clubs, an expo-center and business facilities as an addition to the project.
Land – 59 043 Sq.m Construction area – 240 000 Sq.m Project implementation period - 5 years
37 Development Solutions LLC 49a, Chavchavadze Avenue, 0162 Tel: 995 32 25 35 81/82/82 Fax: 995 32 25 35 84 E-Mail: [email protected] www.silkroadgroup.net