Investor Presentaiton
Private early
stage portfolio
Hospitality and commercial real estate business overview
Investment rationale
"
Increased number of tourists visiting Georgia every year: 5.1 million visitors in 2019, up 6.8% y-o-y,
9.9% CAGR over the last six years.
Tourism inflows up 1.4% y-o-y from US$ 3.2 billion to US$ 3.3 billion in 2019; 11.5% CAGR over the
last six years.
Value creation potential
Grow Portfolio of rent-earning assets through residential developments/opportunistic acquisitions
Reach more than 1,000 hotel rooms. Currently approximately 1,222 rooms are confirmed, of which
273 are operational, 460 are under construction and 489 are under design stage.
Targeting mostly 3-star and 4-star hotels, mostly taping unpenetrated markets in Georgian regions
Leasable modern office stock remains scarce
Georgian office stock's significant portion is non-refurbished, soviet-era stock (traditional). Although Tbilisi's has
one of the highest modern office rents among the CEE¹ cities.
Modern office rents and yields in 2018
Prime yield in Tbilisi stands at 11.7%, compared to average yield of 7.1% in peer cities
Traditional,
28%
Modern,
22%
Owner
Occupied,
50%
Source: Galt and Taggart
(1) Central and Eastern Europe.
GEORGIA
CAPITAL
Arrivals of tourists and tourism revenue | Georgia
Source: Georgian National Tourism Administration
National Bank of Georgia
5.1
4.8
4.1
2.9
2.9
3.0
3.3
2.5
1.8
3.2
3.31
2.7
1.4
1.7
1.8
1.9
2.1
0.9
0.8
1.0
0.6
0.4
1
2011
2012
2013
2014 2015
2016
2017 2018 2019 1Q19
1Q20
Arrivals of tourists (mln)
Tourism revenue(US$ bln)
Hotel market overview | Tbilisi
Accommodation rooms and beds in Tbilisi ('000)
Tbilisi accommodation rooms
breakdown | 30-Sep-19
International chain
brands
24%
Rooms in other
accomodations
23
20
18
16%
16
40
12%
30 8%
20
12%
7%
6%
6% 6%
5%
10
0
Istanbul
Kyiv
Athens
38 32 25 25 23 22
19 19 18
Warsaw
Budapest
Tbilisi
Rent, US$ per sq
Prime Yield
Vilnius
Tallinn
Sofia
Riga
Bratislava
Zagreb
13
8%
8% 12%
10
7%
9
6%
8
10,244
Rooms
8%
7
6
4%
18 18 17
0%
2015
2016
2017
2018
30-Sep-19
Rooms
Beds
Source: Galt and Taggart
76%
Page 49View entire presentation