Arabian Rakeen Development as well as RAK Investment Authority, the creator of the Marjan Island, is intending to invest USD 300 million in Georgia in 2008. The FINANCIAL interviewed Zaza Mikadze, Rakeen Development and RAK Investment Authority Georgia General Director, regarding the new projects the company will launch in Georgia in addition to the already announced Uptown Tbilisi and Tbilisi Heights.
Q. Uptown Tbilisi and Tbilisi Heights are the two visit card projects Rakeen is implementing in Georgia. How successful do you regard the company’s first year in the country to have been?
A. In 2007 Rakeen investments in Georgia exceeded USD 100 million and in 2008 we expect the figure to triple – reaching USD 300 million.
The Poti free economic zone is the top priority project for RAK Investment Authority Georgia in Georgia at this point. We seriously hope to win the tender. The second phase results will be announced on January 25. We have the potential to contribute to the development of Poti port and set up a free zone within 9 months. The advantage about RAK Investment Authority Georgia compared to the other tenants is that we have experience and professionalism both in dealing with free zones and port management.
Q. Your projects are regarded luxury constructions, what’s Rakeen price policy in Georgia?
A. Rakeen is treating the Georgian market very seriously and during the one year period of its activities in the country the company has already managed to start actual sales of its announced projects. For instance we’ve already sold half of the Uptown Tbilisi estate to foreign companies and the rest will be sold to the local market. The interest of Rakeen brand in Georgia is extremely high as we offer luxury products and services though at relatively high prices. In the case of Uptown Tbilisi, 1 sq.m costs range from USD 3 200 to USD 5 000. As for Tbilisi Heights the prices reach approximately as USD 3 000 per sq.m.
Q. Rakeen has announced that its Uptown Tbilisi project headlined its showcase at MAPIC, the international event for retail real estate, which was held in Cannes, France, from November 14-16, 2007. How efficient did the expo turn out to be for your company in terms of establishing new contacts?
A. The top projects that Rakeen presented at MAPIC included: Uptown Tbilisi development in Georgia, which comprises a luxurious shopping mall, four ultra-modern residential towers, two 40-storied office towers and a 2,500 square meter RAK Ceramics showroom, the Tbilisi Heights residential and business complex, the RAK Convention Centre in Ras Al Khaimah, and the mixed use complex in Isfahan, Iran.
As a result, there are some 40 foreign companies that have got interested in Rakeen projects in Georgia. Concrete names and further details will be announced during the February 15 press-conference. I can only reveal their origin and say that these companies come from Italy, France, US, UK, Germany, Canada, Japan.
Q. “The event will also serve as an ideal platform for us to further our brand image and also attract global investments to the emirate of Ras Al Khaimah,” said Amy Gough, Marketing Manager, Rakeen, before the expo was opened. As for Georgia, what new projects will attract Rakeen investments?
A. In addition to Tbilisi Heights and Uptown Tbilisi, we’ll announce the launch of the three new initiatives: A five-star hotel in Vardzia, plus Batumi and Gonio projects. Overall we’re engaged in 10 projects throughout Georgia, but will name the rest later.
Rakeen business is quite verified including: real estate, industry, agriculture, tourism. In a couple of weeks our company Al Hamra will start operations in Georgia. As for Rak Ceramic, its representation is already opened in Georgia. In the frame of the Uptown Tbilisi project we plan to construct a separate huge 2,500 sq.m showroom that will be followed by the construction of a factory.
Q. Rakeen is the owner of the Sheraton Metechi hotel. What’s the new strategy you’re going to use regarding the hotel?
A. We’re going to spend USD 20 million in the reconstruction works of the Sheraton Metechi Palace which was built 15 years ago and clearly really needs refreshing. In a year’s period we’ll have a brand new type of hotel.
Indeed, the hotel business is becoming more and more competitive in Georgia as world giants are entering the country, though we’re not afraid of any competition.
The Ernst and Young office in Moscow did feasibility studies of the local market for us. Rakeen is entering new countries with the ambition to be the leader.
Q. Who are the designers and construction companies involved in Rakeen projects in Georgia?
A. ACLA Group, the largest group all over the world known for a USD 20 billion skyscraper project, is engaged in the Tbilisi Heights master plan. As for Uptown Tbilisi, Cadiz International is our partner. Construction works are conducted by Al Hamra Constructions.
Q. How easily did the Arabian company manage to increase brand awareness in Georgia?
A. During the first year of activities in Georgia, even as a new market for the company, Rakeen were not very active. Although since 2008 our advertising focus will be highly intensified and our new marketing group will start setting up an advertising budget.
TV, radio, press or outside advertising- we’ll use all kinds of means to raise Rakeen brand awareness in Georgia.
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