Georgia is offering Egyptian investors five mega real estate and tourist projects in the capital city Tbilisi, according to the economic adviser to the Embassy of Georgia in Egypt, Gocha Kereselidze.
Kereselidze told Daily News Egypt that the embassy is going to submit a presentation of the projects to Prime Minister Sherif Ismail, to encourage investors to visit Georgia and explore the real estate investment opportunities.
He added that his country is interested in having Egyptian real estate developers invest in Georgia, as it has a lot of potential and facilitates investment.
The projects range from hotels and hospitality projects, to housing projects for luxury, middle-income, and low-income housing, according to Kereselidze.
He noted that half of Georgia’s real estate projects are developed by foreign investors. Investments of the United Arab Emirates in Georgia are estimated at $1bn, while Egyptians have not greatly contributed to real estate projects there.
The portfolio of available projects includes the Gudiashvili Square Development project, which aims to develop eight hotel and restaurant complexes on a total area of 10,863 sqm, costing approximately $20m. The project is expected to be developed in eight years with the internal rate of return (IRR) estimated at 18.4%.
Georgia receives more than 5.9 million tourists annually, of which 65% stay in hotels, making the hotel market very attractive for investors.
The second project aims to privatise a 700,000 sqm plot of land and convert it into a residential complex. It aims to build a new residential area for about 5,600 families on an area of 250,000 sqm, with an average price of $600 per sqm. The remaining land will be used for the construction of services and facilities.
The third project is the development of parking facilities in Tbilisi, aiming to increase the number of parking spots to 3,540. The project’s investments are estimated at $19m and could be developed in four to eight years, with IRR between 16% and 51%.
The fourth project revolves around replacing existing street lamps with energy-efficient LED lighting, which aims to minimise street lighting costs and improve lighting quality. 91,000 street lamps are to be replaced, with an approximate cost of $32m and a development period of eight years. The IRR is expected at 8.46%.
The final project aims to develop the Tbilisi Sea area. The municipality is planning to sell or transfer the ownership of territories in the Tbilisi reservoir to the private sector, in order to develop it according to the Tbilisi city development master plan. The project aims at building large green spaces, sports facilities, as well as residential and commercial areas.
Further, he revealed that his country is also encouraging Egyptian investors to invest in the agriculture sector, based on Egypt’s interest in the green corridor project.
In April 2015, Russia offered to create a green corridor with Egypt, Jordan, and Turkey, to facilitate the supply of fruit and vegetables from these countries to the Russian market.
“Georgia has the potential to help Egypt develop this project, as it has a central distinguished location between Europe and Asia. Moreover, Georgia is negotiating with Italy, Jordan, Russia, and other countries regarding agricultural projects in the country,” said Kereselidze.