Tbilisi, September 27, 2007 — IFC,
a member the World Bank Group, will invest in the Georgian Reconstruction
and Development Company’s real estate development projects, which will
address Georgia’s increasing demand for quality commercial and residential
real estate infrastructure in urban areas. The $48 million debt financing
will also help create jobs and contribute to growth.
With IFC’s financing, GRDC will implement
up to seven real estate development projects, most of which are in the
capital city of Tbilisi and are at an advanced stage of preparation, spanning
commercial, residential, and mixed-use sectors.
“For the past four years, Tbilisi has
seen improved commercial and residential facilities due to recent construction
and renovation,” said Mamuka Khazaradze, GRDC’s President. “IFC is helping
GRDC contribute to better real estate infrastructure by matching new growth
with upgraded facilities that cater to consumers looking for both quality
“Supporting GRDC will help develop important
real estate urban infrastructure in Georgia. This will have a catalytic
effect on the domestic economy, as well as make the country more attractive
for foreign direct investments,” said Edward Nassim, IFC Regional Vice
The facility was arranged by Argo Saint
George LLP (ASG), corporate finance adviser with offices in London and
Tbilisi. ASC focuses on advising and raising debt and equity for enterprises
in Georgia, it has arranged over $150 million of financing for Georgia
in the last twelve months.
IFC, a member of the World Bank Group,
fosters sustainable economic growth in developing countries by financing
private sector investment, mobilizing private capital in local and international
financial markets, and providing advisory and risk mitigation services
to businesses and governments. IFC’s vision is that poor people have the
opportunity to escape poverty and improve their lives. In FY07, IFC committed
$8.2 billion and mobilized an additional $3.9 billion through loan participations
and structured finance for 299 investments in 69 developing countries.
IFC also provided advisory services in 97 countries. For more information,
IFC in Georgia
Georgia became a shareholder and a member
of IFC in 1995. As of September 30, 2007, IFC has committed nearly $258
million in 23 projects in Georgia's financial, power, oil and gas, and
manufacturing sectors. In addition to investments, IFC conducts advisory
programs in Georgia to promote corporate governance and improve the business-enabling
environment with the support of BP and its Oil and Gas partners and the
Canadian International Development Agency (CIDA). The corporate governance
project helps companies and banks improve their governance practices, which
has helped bring millions in outside investment to Georgia. IFC's
business-enabling environment project helps government agencies streamline
the regulatory framework for businesses. It also monitors the local business
climate through a regular survey of entrepreneurs. This survey and the
IFC/World Bank Doing Business report help the government pinpoint
priority areas for reform.
About the Georgian Reconstruction
and Development Company
GRDC was founded in 2004 by the first foreign investor in Georgia, Bob
Meijer, and local partners Mamuka Khazaradze and Badri Japaridze.
GRDC is a leading real estate and development
company, with operations in the Republic of Georgia. The company invests
in and develops office, retail, resort and prime residential properties.
Its high quality portfolio of 22 key sites, predominantly located in the
country’s capital, Tbilisi, has circa 2 million square meters of potential
GRDC’s pilot project was the Class A
“Green Building” office centre located at 6 Marjanishvili Street, Tbilisi,
and the company is now developing the following projects: 7 Freedom Square
(former Tsekavshiri Building), Central Railway Station, Lisi Lake and Cinema
A feature of GRDC’s commitment to sustainable
and responsible development is its objective of working closely with international
property professionals to create buildings and spaces that provide exciting,
vibrant and functional working and living environments.