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$50 Million Project by “Rekan Group” is set to Continue

$50 Million Project by “Rekan Group” is set to Continue

“Rekan Group Georgia’s” construction project of a multifunctional complex in Adjara is set to continue.

The government of Adjara decided to write off the company’s fines for failing to fulfil its liabilities. In return, the “Rekan Group” will renew its commitment to fulfilling all its liabilities and pay the equivalent of USD 1 million into the Adjaran government’s budget.

The complex is being built in the Kakhaberi settlement in Batumi. The company purchased the property for USD 3 million, and must repay that sum in instalments by the end of 2017. Construction shall include a hotel, apartments, commercial properties and a car park, to be completed within 51 months.

A total of USD 50 million will be invested in the project.

At present, the company has partially paid the property purchase price to the equivalent of USD 500 000 in local currency, and has begun construction. As of 25 August 2016, the company has accumulated fines totalling GEL 504 000 and USD 161 451.

The project has been delayed by legal disputes over the building plot. A court session is due to be held on 6 September, but the “Rekan Group” has stated that it wishes to continue with the project, and has already accumulated the funds for investment on an account at Ziraat Bank.