Georgia Capital Portfolio Overview
Private late
stage portfolio
Housing development business overview
Investment rationale
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Shortage of housing from Soviet era combined with Georgian tradition of multi generations living under
one roof, average household size is significantly higher at 3.5 compared to Eastern or Western Europe
Most of the housing stock dates back to Soviet era and is amortised
In line with the economic growth, urbanization level is expected to increase from current low level
Value creation potential
Asset light strategy
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Unlock land value by developing housing projects
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Development of third-party land - franchise m² brand name. Undisputed market leading platform of
2,500 apartments¹ to be delivered in 4-5 years
Earn Construction management fees from third-party projects and bring construction works in-house
Financial metrics (GEL millions)²
უძრავი ქონეგა
REAL ESTATE
GEORGIA
CAPITAL
Key highlights | 30 June 2019
30-Jun-19
GEL millions, unless otherwise noted
31-Dec-18
Change
Enterprise value
200
174
14.9%
Net debt
139
107
29.9%
Equity fair value
In-kind dividends (lifetime)
Market opportunity
61
67
-8.9%
101
83
+21.7%
Annual
2015
2016
2017
2018
1H18
Apartments sales revenue
45
96
92
95
52.4
Semiannually
1H19
16.6
Average household size and home ownership, latest available data
Change
Construction revenue
36
7.5
21.6
EBITDA
18
11
28
15
8.8
(2.1)
-68.3%
NMF
NMF
58%
57%
54%
60%
54%
75%
71%
75%
69%
68%
92%
91% 90%
84%
97%
83%
85%
90%
82%
69%
(1)
(2)
Digomi residential project update
Construction permit received on the largest ever in-house project at the end of June 2019 expected to
drive cash flow generation in 2H19
Revenue recognition from Digomi project will start from 1 July 2019. No revenue recognized in 1H19
As of 14 August 2019
3.5
2.8
2.8 2.8
2.6
2.4
2.3
2.3
2.2 2.2
Sq.m. of apartments sold
6,430
Georgia Croatia
Slovakia
Poland
Romania Bulgaria Hungary
EU
Estonia Lithuania
Sq.m. sold as % of total available space
29%
6.5
Average Household Size
Source: Eurostat, TBC Capital
Home Ownership
Urbanization Level
Sales value $ million
2,500 apartments relate to the signed Tbilisi Airport Highway deal.
Housing development business' functional currency is US dollars.
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