Friday, October 19, 2007, #200 (1467)

Business Roundup
Prepared by Christina Tashkevich

EBRD financing boosts Georgia’s property sector
The Georgian Reconstruction and Development Company (GRDC) and the European Bank for Reconstruction and Development (EBRD) signed an agreement this week that will see EBRD invest USD 57.6 million in GRDC’s program to bring commercial property projects in Tbilisi up to international standards.
With a loan of USD 42.6 million and a purchase of a 21 percent stake worth USD 15 million, EBRD involvement will assist GRDC in the construction, refurbishment and operation of four commercial properties: two office buildings, a shopping centre, and a railway station.
It is EBRD’s first direct investment in Georgia’s property sector.
The deal was facilitated by Argo Saint George LLP (ASG), which has arranged over USD 150 million of financing for Georgian companies over the past year.
GRDC was founded in 2004 by businessmen Mamuka Khazaradze, Badri Japaridze and Bob Meijer. The company develops office, retail, resort and prime residential properties. Its portfolio of 22 key sites, predominantly located in the country’s capital, Tbilisi, has a total of around 2 million square meters of potential development.
GRDC’s pilot project was the Class A “Green Building” office centre located at 6 Marjanishvili Street, and the company is now developing the following projects: 7 Freedom Square (formerly the Tsekavshiri Building), the Central Railway Station, Lisi Lake and Cinema City.

12 companies bid for Poti port
Twelve companies are bidding for the management rights to Poti port for a 49-year term, submitting their proposals to the Economic Development Ministry by October 15.
The companies are variously based in the United Arab Emirates, Israel, UK, Turkey, France, Korea and Germany.
The tender winner must develop a free economic zone in the territory adjacent to the port, as well as increase cargo flow. The winning bid will be announced within two weeks.

Wimm-Bill-Dann buys Georgian Foods
Russian food company Wimm-Bill-Dann Foods announced it has acquired Tbilisi-based Georgian Foods Ltd. for an undisclosed amount.
Georgian Foods’ factory began operations in 2002, and produces dairy products, including milk, matsoni, sour cream and cheese.
The buy will give Wimm-Bill-Dann its first production facility in the Caucasus.



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