A week ago, members of the “Georgian Business Association” convened to discuss whether to take a unified stance on the ongoing events in the country. “Wissol Group” participated in this meeting. It was decided that the association would not express a collective position.
Previously, “Wissol Group” had not taken a stand on the protests. The company also refrained from signing a statement published on the Free Business Platform, in which various businesses demand the release of political prisoners and new elections. To date, 2,425 businesses and companies have endorsed this statement.
Earlier, in the spring of 2024, the Pkhakadze brothers, owners of Wissol Group, supported the “Russian law,” which the then parliament passed amid continuous mass protests and which received criticism from the European Union and Western democracies.
What explains the silence of “Wissol Group” and the Pkhakadze brothers? Here are three possible reasons behind their stance.
Participation in State Procurement
JSC “Wissol Petroleum Georgia” began participating in state procurements in 2010 under the rule of the “United National Movement.” Its subsidiary, “Wissol Auto Express,” followed suit in 2013.
In 2024 alone, JSC “Wissol Petroleum Georgia” won 857 tenders announced by state agencies, 852 of which were awarded through direct procurement. The total value of these contracts amounts to 8.7 million GEL.
More than 2 million GEL worth of tenders were awarded by “Georgian Melioration.” The National Food and Rural Development Agencies procure fuel from “Wissol.” JSC “Wissol Petroleum Georgia” actively serves municipal non-commercial legal entities (N(N)LEs), having secured 170 tenders from them last year. Additionally, 24 tenders were awarded by district election commissions before the elections.
As for “Wissol Auto Express,” it secured 57 state procurements last year, amounting to a total of 1.8 million GEL. In total, “Wissol” received more than 10 million GEL in a single year.
Between 2022 and 2023, JSC “Wissol Petroleum Georgia” imported 65,030 tons of gasoline and gasoline products from Russia, while “Wissol Auto Express” imported 1,043 tons of automotive oil. These data were sourced from ImportGenius, an international database that compiles official trade records.
Who Owns the Former Public Broadcaster Building in Tbilisi?
In the fall of 2022, LLC “Kostava Towers” purchased the former “Public Broadcaster” building at 68 Kostava Street in Tbilisi through a state auction, paying 76.8 million GEL.
LLC “Kostava Towers” is owned by LLC “Alma,” whose supervisory board members include Vasil, Levan, and Samson Pkhakadze. LLC “Alma” is wholly owned by “Global Investors Limited,” a company registered in Malta.
The former Public Broadcaster building, now owned by a company linked to the Pkhakadze brothers, sits on a 33,209 square meter plot of land. The Soviet-era building itself spans 23,649 square meters.
The old building of the Public Broadcaster on Kostava Street.
“We have decided to enter the development sector, specifically in residential apartment construction. This is why we acquired the Public Broadcaster’s building,” states Soso Pkhakadze.
The new Public Broadcaster building is located at 31 Politkovskaya Street in Tbilisi. Construction began in December 2020 and was completed in October 2024. The cost of constructing the new television headquarters was 85.3 million GEL. The old building is currently being vacated as Public Broadcaster staff and equipment transition to the new facility. The timeline for redevelopment of the old site remains unknown.
The state had previously attempted to sell the former broadcaster’s building and its surrounding land, but seven auctions failed. The first auction was announced on June 16, 2020, with an initial price of 122.4 million GEL. By the final auction, the property was listed at approximately 40 million GEL less.
New Residents of the Hippodrome
The Pkhakadze brothers are also actively expanding their real estate ventures. In 2023, their company, LLC “Central Park Avenue,” purchased an 80,000 square meter plot near the Hippodrome from the “Cartu Foundation.” Similar to the Public Broadcaster’s territory, a multifunctional complex is planned for this site.
According to the company’s disclosed plans, the area will be divided into two sections. The first will feature commercial, office, and residential buildings, with a maximum height of 25 floors. The second will include commercial, recreational, entertainment, sports, and residential spaces, with buildings reaching up to 79 floors.
Originally, the Hippodrome area spanned 343,169 square meters. Over the years, ownership transitioned from LLC “Jockey Club” to LLC “Invest Capital” and later to the “Cartu Foundation.” In 2020, “Cartu” transferred 272,628 square meters of the land to Tbilisi City Hall, retaining a portion of it. However, per agreements signed in 2023, 80,000 square meters will be transferred to the Pkhakadzes’ company, “Central Park Avenue.” Media reports indicate that the Pkhakadzes paid $85 million for this acquisition.
For four years, Tbilisi City Hall has promised to develop a central park on the Hippodrome territory, with funding from the “Cartu Foundation.” Concept images of the planned park were even published.
“A central park will be created here as a gift from the ‘Cartu Foundation’ to the city. I am delighted that such an important project is coming to life. Another large recreational space will emerge in Tbilisi for people of all generations to enjoy. Work will be carried out in stages, ensuring the territory remains accessible. This project will cost several tens of millions. Work has begun, and I congratulate Tbilisi. The project will take two years to complete,” said Tbilisi Mayor Kakha Kaladze in October 2020.
The area to be developed near the hippodrome.
Based on the mayor’s statement, the central park should have been completed by October 2022. However, the promise was not fulfilled. Meanwhile, the Pkhakadze brothers are proceeding with the development of the former Hippodrome site.
Activists and the civic movement “Hippodrome – No Master Zone” have been protesting the commercialization and urbanization of the Hippodrome area for months, staging demonstrations at the site and in front of the Tbilisi City Council. However, the silent businessmen have remained unresponsive. Similarly, Kakha Kaladze, Tbilisy Mayor has not explained why the promised central park has not been built on the portion of the Hippodrome that remains under City Hall’s ownership.
Currently, “Central Park Avenue” has submitted a request for a construction permit for the former Hippodrome territory, which falls within Recreation Zone 1. This zone is designated for green areas such as gardens, boulevards, and parks, where construction is generally prohibited, except for lighting, irrigation systems, billboards, and decorative installations.
Despite these restrictions, the Pkkhakadze brothers seek to build two high-rise structures in this zone, one 157 meters tall and the other 110 meters tall. The application is under review, with a decision expected by February 7.
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