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Tbilisi Balneology Resort Sold

“Tbilisi Balneology Resort will become a profitable institution thanks to valuable management and private investments”, Ketevan Khurodze, director of Meidan Group, one of the owners of the facility, told the Commersant. Major investments will be made in the facility development, she noted.

Having privatized the facility, LLC Ialoni has assumed a number of obligations, including: payment of existing credits (hundreds of thousands), maintaining all medical programs, developing children and medical programs and they will be more adapted for persons with disabilities.

The facility will maintain medical-belneology profile, 80% of employees. For 3 years LLC Ialoni will invest 10 million GEL, Khurodze said.

“There is obligation of ensuring continuous operation of Balneology Resort in the process of implementing reconstruction works, as well as creation of sanatorium-style hotel suites (at least 30) for balneology resort”, Khurodze noted.

Meidan Group has been operating on the market for 16 years and creating important tourism infrastructure on Mukhrantubani-Abanotubani route. Meidan Group has huge experience for rehabilitating culture heritage monuments, maintaining architectural value of monuments and has successful experience of operation of tourism facilities and major medical facilities, Khurodze said.

The facility was put out for privatization for reciprocal transmission of most important and valuable property to the state, Khurodze added.

“Despite this factor, our company will pay several millions in addition. As to calculations, an architectural project should be developed and the status of culture heritage monument should be taken into account, as well as company potential for the facility reconstruction and only after that we will know in what time we will collect investments and receive profits”, Khurodze said.

We remind you that Government of Georgia has handed over 100% stake of Balneology Resort to Ialon company. The company is also obliged to pay 2 375 234 GEL  difference price between property market values.

We remind you that Government of Georgia used to own a 100% stake in Tbilisi Balneology Resort. LLC Tbilisi SPA currently employs 86 persons. In 2014 the company revenues exceeded 620 000 GEL. In 1998 the building was conferred the status of cultural heritage monument.