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former Ministry of Agriculture
Photo/ Gvantsa Kordzakhia

Building of Former Ministry of Agriculture to Be Reconstructed into a New Hotel

Company “Grnanti” will build 5-star hotel at the building of former Ministry of Agriculture in Kostava str. instead of “Georgian Property”.

The government has already approved the agreement, which should be signed between Agency for State Property and LLC “Granati”. According to the new decree, company “Granati” must put the new 5-star hotel with 120 rooms, locating in Kostava/Botsvadze str. 41/2, under the exploitation within 4-year term.

The investor is obligatory to get the permit on building/ reconstruction through 11 months, while the company must start construction within 13 month term after the signing of the agreement. However, the investor must open the hotel officially in 48 months.

“Granati” will spent 20 million USD for implementation of the project. The company must submit banking guarantee of 10 million USD, valid through not less than 52 months. To remind, “Georgian Property” was building the hotel under the brand “Intercontinental” at this building.

According to the primary privatization agreement, construction of the hotel had to be started in 2008, but the investor failed to meet the demands and the agreement was reviewed. The new decree of the government notes, that imposed fines on “Georgian Property” due to the fail of the purchase agreement, signed on January 15, 2007, will be forgiven.

If Georgian Property will take participation in the construction of the hotel is not known. Agency for Real Estate dose not specify by what conditions the company delivered this real estate to “Grnanti”.

It should be noted, that LLC “Granati” was founded on October 21,2014. 50% of the company belongs to Shomurod Iliasov, citizen of Uzbekistan, 25-25% is owned by Merab Chikhradze and Dimitri Abdushelishvili, 100%-share holder of “JSA Invest”.

Author: Maia Arabidze