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Abastumani/Photo Levan Verdzeuli

Georgia Develops Middle Market Sector: $28 Million Hotel Construction in Abastumani is Planned

The second stage of hotel construction in Abastumani – concrete works – will start in spring, Lasha Papashvili, businessman has declared to GBC agency.

According to him, works of 1 million USD are already made on the first stage. Partnership Fund participates in the project, while foreign partners work on the project.

French bank still remains reluctant, because they see some risks. We hold negotiations with other financers. We have classically renovated talks with IFC and do not exclude EBRD’s engagement in the project as well. We do not exclude to take a loan on the group and to carry on the project so. Investment of $28 million is planned, at that $14 million is already mobilized jointly with Partnership Fund, whereas we are searching a creditor to fund 50%. We have taken a commitment of 7 million GEL towards the state, while we should finish the construction in Q1, 2018. This should be a 4-star hotel.

The famous businessman  plans to start another project. The matter concerns to the construction of 4-star hotel in Lermontovi str. Oild Tbilisi, which projecting will start this year.

Construction of the hotel is planned on a very important place and a great investment will be made – $36 million. In this case we should collect minimum capital and will start negotiations on funding. The banks do not fund 50-60% of the total project value, respectively the same situation should be in this case. Designing of such a large-scale project needs about a year. So, we think to start construction in 2017”, – the famous businessman says.

Mariam Minadze GBC