Investor Presentaiton
Private early
stage portfolio
Hospitality and commercial real estate business overview
Investment rationale
Record number of tourists visiting Georgia every year: 5.1 million visitors in 2019 (up 6.8% y-o-y)
with 16% CAGR over the last 3 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.
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
3.3
2.9
2.9
3.0
2.5
3.2
3.3
2.7
1.8
1.7
1.8
1.9
2.1
1.4
1.0
2011
2012 2013 2014
Arrivals of tourists (min)
2015
2016
- Tourism revenue(US$ bln)
2017
2018
2019
Hotel market is expected to expand significantly
Accommodation rooms and beds in Tbilisi ('000)
Tbilisi accommodation rooms
breakdown | 30-Sep-19
International chain
brands
24%
Rooms in other
accomodations
23
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
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
8%
10,244
Rooms
7
6
4%
18 18 17
0%
2015
2016
2017
2018
30-Sep-19
Rooms
Beds
Source: Galt and Taggart
76%
Page 42View entire presentation