For Investors

The real estate development sector in Georgia has one of the highest margins in the country, with long-term EBITDA margins around 50%, and most development projects being financed predominantly by owner equity participation, constraining market development. Georgia's real estate market has been lacking a specialized institutional investor capable of forming a high-quality portfolio of projects and working alongside the best developers in the country, as well as providing secure access to the market for international investors. The Georgian Real Estate Fund fills this crucial role, providing professional, reliable investment opportunities in the growing Georgian market.

We see significant growth opportunities in the residential property market, driven by factors such as the reduction of household sizes, lower mortgage loan rates, growth of tourism and stable prices. These create opportunities in suburban districts to develop affordable housing, which studies show are the most demanded. As the urbanization rate grows, this demand for small and affordable housing in Tbilisi is expected to rise further, and with increasing sales, so will the demand for real estate investment. Overall, our real estate fund offers a unique opportunity for investors to gain exposure to the growing Georgian real estate market, which offers stable returns and a range of investment opportunities across various sectors.

The real estate fund will focus primarily on the residential market, with most of the investments allocated to projects in Tbilisi and its outskirts. The target segment is medium to affordable, and the fund will diversify its investments in multiple projects, with an average project investment of USD 5-7 million and an investment horizon ranging from 4 to 5 years. The fund will invest in pre-selected projects with high interest yields and necessary permits to begin construction, entering project SPV with developer companies with proven track records on a 50/50 basis.

To provide the investors with the best value, the fund will pre-purchase a part of the selected project from the developer on a solid discount to the pre-sale prices, on a condition that the fund's investment will be placed on an escrow bank account where the developer will be able to use it after meeting agreed criteria. The fund will have a 70/30% debt/equity structure with a targeted 15% yield per annum.