The FINANCIAL — The FINANCIAL interviewed Zeev Frenkiev, General Director of Tsavkisi Valley, a company by Marenico Group in Georgia, regarding the Tsavkisi projects initiated by the group in the country.
Marenico Group, the largest Israeli investor in Georgia, claims that the total amount of its investments in Georgia exceed USD 100 Million. Besides Georgia, the group is working in other countries as well, these include Hungary, Cyprus, Costa Rica, Azerbaijan and Israel.
Marenico Group represented by Israeli investors and other foreign entities with the partnership of Georgia’s local partners, is in charge of the construction of the following projects: Tsavkisi Valley, Tsavkisi River, Mtskheta Real Estate Project and others.
“The first project of Tsavkisi Valley is worth USD 40 million and consists of 163 villas and a large multifunctional commercial centre for the welfare of the inhabitants,” Frenkiev says. “The Tsavkisi River is a 119 house condominium with its own commercial centre and USD 28 million is to be spent on it. Another USD 32 million is invested in other real estate projects.”
The company claims Tsavkisi Valley has become a major player in the Real Estate Investments Market in Georgia.
“It is a unique living complex never built in Tbilisi before. People worldwide are wishing to move their residences out of town. Towns are overcrowded and polluted. We chose the Tsavkisi location as it is very well-known by Georgians for its clean pure air. The choice was perfect and we are continuing to invest in this region,” says Frenkiev.
“In Tsavkisi Valley we have sold 90% of houses, collecting around USD 20 million.
We keep the prices affordable and have only recently increased the price to USD 1,177 due to the price increase of raw materials and value drop of the US currency.
“Buyers accept this price, since they know and trust our high construction standards.
An Israeli supervision company is controlling the quality of the work all along the construction process.”
Tsavkisi River Project, a townhouse development established on the territory of 60,000 sq.m.
“This is a new approach of construction in Tbilisi. The houses are smaller than in Tsavkisi Valley and the land is smaller as well. This type of house we offer to smaller families, young couples, singles, etc. The average price of a house is USD 150,000 to 190,000.
We will suggest to all buyers that they allow us to finish the house for them. It will maintain the overall territory’s cleanliness and avoid “house repairs” by the buyer at different times.
We may complete this project by mid 2010.”
Frenkiev says sales will start by the middle of June. The average price will be USD 950 or USD 1,470 for a fully finished house with kitchen, heating system, solar system for hot water, electricity, piping, gas and other facilities. “Just come over with your furniture and live!”
“We will also sell the commercial areas. No sales have started yet. We will start sales by the middle of June 2008.”
“The basic reason for people to buy houses in Tsavkisi is the short distance to town and the place’s altitude above the sea. 850m above sea level is the most accurate height. You never get a headache or feel short of breath. The second reason is the most beautiful sight of the mountains around, overlooking Tbilisi, the silence and added attraction of snow in winter time.”
Iberiabuild Ltd. are doing the constructing for all projects. Frenkiev says its staff is highly professional and experienced.
Cooperation with local banks
“We basically cooperate with TBC bank. Sometimes we are using their short term credit lines. We do not work with foreign banks for our projects in Georgia.”
“We are using the services of GPI company. They are very flexible and ready to supply any kind of insurance coverage. They have a very experienced team.”
As the company declared, great market demand for this kind of living house brought about the decision to build an additional 119 houses located adjacent to Tsavkisi Valley.
“There is great demand for private living solutions outside of town. We expect the demand will grow in the coming 5 to 6 years. Other regions to be developed that we are considering are Isani and Varketili. You may ask why Varketili? The region is open enough, there is plenty of “air”, the micro-climate is soft, the place is windy enough. There are 2 kinds of construction suiting Varketili: high buildings of 12 to 16 floors built in groups with internal services, parking etc. and villas of middle size of 100 to 150 m2.”
Written by Kate Tabatadze