The FINANCIAL — Niba Invest, which has already projected the first green architecture in Georgia, is continuing to invest money in agribusiness. “Green architecture” is considered to be one of the ways of fighting global warming. Bakur Kiguradze, General Director of the developing company says that, “Agriculture has big potential in Georgia and is worth being invested in.”
As well as financing farms in Eastern Georgia Niba Invest is building a trade complex in Saburtalo, Tbilisi.
The project, which will cover 70,000 square metres, consists of a trade centre and business centre. At the top of the trade centre, is an iceberg-shaped glass construction which makes it possible to distribute the daylight down through the lower underground floors. The project was designed by Italian architect Massimiliano Fuksas. The building will use an exceptionally ecologically clean heating and cooling system.
We plan to finish the building of the structure at the end of 2009, but it will be completed in 2010. Construction of the tower will be finished in 2013. The Russo-Georgian war and global crisis affected the construction processes of Delisi complex. But we managed to restart the building processes as originally planned. The project costs USD 105 million. USD 27 million has already been invested. Additional USD 23 million will be invested by our partners. In order to receive the urgent funds we’ll work on obtaining a credit line. The shareholders of Delisi project are physical and juridical persons.
Q. People’s Bank was one of the shareholders of Delisi complex, which sold its assets. Who became the new owner of the Delisi complex?
A. People’s Bank, which was one of the shareholders of the project invested about GEL 11 million in it. The new team management of People’s Bank took a decision to focus on the banking direction and disconnect from other business directions. Accordingly People’s Bank sold all its bonds from the Delisi project as well. The shares of People’s Bank were bought by Georgian Business Development and the company then became the new shareholder of the Delisi project. From the very beginning we signed a contract selling a small space of the future project’s. We are not interested in selling other spaces yet. The cost per square metre of already sold space is EUR 5,000.
“Besides the Delisi project, we currently have three projects in the city’s rebuilding and two in the direction of agriculture. We are building a hothouse in the Gardabani region.
At present time we have already invested GEL 300,000 in this. The first steps of the work have already been launched. We are working with Israeli and Ukrainian companies. An Israeli bank will launch a credit line for us. As well as this we are negotiating with international investing funds already existing in Georgia.
We need additional investments to the amount of USD 2.5 million to finish the already started projects in Marneuli.
Q. What are your expectations in terms of the cost of the real estate market, how will it change?
A. My expectations towards the prices of real estate are its further increase. Recently Georgia became much integrated with the European market which switched us to an adequate level in view of prices. The economical crisis shortened prices on real estate. According to the experts the top of the recession has already been reached. I think that the more active changes towards prices on the real estate market will start picking up from the end of 2010.
Q. We hear radically different versions about the restoration of mortgage loans from banks. What is your opinion on this?
A. Activity from the banking sector towards launching mortgages will much restore customers’ interest towards the real estate sector. The interest of the banking sector towards real estate business will soon be restored. We should expect banks to be actively launching mortgages at the end of 2011. Before this international financial institutions have to finance Georgian banks.
Q. How do you think the integration of Georgia into NATO or the EU will influence the construction business?
A. Georgia’s eventual inclusion in NATO or the EU will increase the international level of credibility and trust towards Georgia.
Written By Madona Gasanova
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