Investor Presentaiton
Housing development & Hospitality business (m²) overview m
Outstanding track record
Key facts
■ Generated IRR ranging from 31% to 329% on 7 completed residential projects
■ Cost advantage through the vertical integration of its construction, project management and sales platforms
Industry investment rationale
■ Average household size is significantly higher compared to Europe
Most of the housing stock dates back to Soviet era and is amortised
■ As country continues to grow urbanisation levels are increasing
■Record number of tourists visiting Georgia every year
Asset light strategy
Unlock land value by developing housing projects
Developing third party land - franchise m² brand name
Grow yielding asset portfolio
Generate fee income from third party construction projects
Enter hotel development business
■ Build, Sell (by wrapping into REIT) and Manage
Reach 1000 hotel rooms over the next 3 years. Currently approximately 760 rooms of which 152 are operational and c. 610
are in the pipeline
უძრავი ქონეგა
REAL ESTATE
GEORGIA
CAPITAL
Market opportunity
Tourist inflow expected to double over the next 3 years
Number of tourists, millions
10
Average Household Size
8
5.5
6
4.8
3.3 2.8 2.7 2.7
4.1
4
3.5
2.6 2.4
2.3
2.3
2.2
2.1
4
2.2
2.3
2.7
2
0
2
0
Georgia i
Croatia
Slovakia
Poland
Romania
Bulgaria
NAV track record (USD m) - Triple NAV by 2022
Hungary
EU
Estonia
Lithuania
Financial metrics (USD m)
Annual
Quarterly
2015
2016
2017
1Q17
1Q18
Gross revenue from apartments sales
$20
$41
$37
$7
$11
Commercial real estate portfolio
EBITDA
$14
$18
$30
$17
$30
$8
$6
$10
$0.3
$0.5
$59
Net Asset Value
$45
$51
$59
$55
$61
$45
$51
$55
$61
Selected operating metrics
1Q17
4Q17
1Q18
Number of apartments sold
143
165
53
Apartments in stock
704
217
164
On-going projects
4
4
4
Leased area (sq.m.)
17,925
20,477
19,629
2015
2016
2017
1Q17
1Q18
Exit Strategy - Spin-off as REIT
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