The Panorama Tbilisi investment project and the tourism and real estate project, uniting four multi-functional complexes in the city centre of Tbilisi, has been described by the Georgian Co-Investment Fund’s (GCF) chief executive George Bachiashvili, as "grandiose.”
Panorama Tbilisi’s four multi-functional areas with a total investment of $0.5 billion USD fully funded by GCF, a $6 billion USD private equity fund included: Sololaki Rise, Sololaki Gardens, Tavisufleba (Liberty) Square and Erekle II Square.
Panorama Tbilisi is one of the GCF’s five projects has gone public today where Bachiashvili, gathered business representatives, investors, financial institutions and Government representatives to mark the launch of the projects at the Tbilisi Marriott Hotel.
An artist's impression of the "Tbilisi Panorama” complex on Tavisufleba (Liberty) Square.
The projects range across a variety of sectors totaling $1.3 billion USD including tourism and real estate, which will be allocated half of the initial budget of half a billion USD. In addition, more than $770 million USD will be invested in two energy projects and $59.3 million USD will go towards developing Georgia’s agricultural industry with dairy farms and greenhouse projects.
The Fund’s horizon is seven to nine years, after which it will exit from all of its investments by selling its shares to co-owners, third parties or through initial public offerings.
According to the model of the project, the uniqueness of the Panorama Tbilisi project was the lifts and aerial gondola that would linkcentral and old Tbilisi, meaning guests do not have to rely on vehicles as a mode of transport.
A digital video of ropeways which will connect the "Tbilisi Panorama” complex facilities with each other.
"Bended lifts, ropeways, architectural and technical components of the projects give us the right to say that Panorama Tbilisi will become the calling card of the capital city,” Bachiashvili said.
"The multi-functional complex is composed of five and four stars hotels, hotel-type apartments, trade and office spaces, exhibition and conference halls, sport facilities and other kind of infrastructure that is needed to provide guest with a complete service.”
Bachiaashvili believed the project was the best example of "green architecture” as more than 30 000 new trees would be planted surrounding the new facilities.
The complex will be equipped with parking spaces for 1800 vehicles, which will ease car parking woes.
Designers have not finished working on the model of the project, as GCF had conducted negotiations with local and international architectural bureaus for improvement advice.
An artist's impression of the "Tbilisi Panorama” complex on Erekle Square.Bachiashvili revealed part of the land where the project will be developed belonged to the former Prime Minister of Georgia Bidzina Ivanishvili, who was one of the Fund’s founders who committed $1 billion USD of personal funds.
"We are in the process of moving ownership of these lands from Ivanishvili and the rest will be acquired from private land owners,” Bachiashvili said.
The project is expected to launch as soon as the final details are confirmed. The large-scale complex is expected to be in full operation in four years.
Hydro Power Plants – increasing energy security
To increase the electricity supply in Georgia, GCF invested $100 million USD in the Mtkvari Hydro Power Plant (HPP) and $678 million USD in construction of the Tskhenistskali Cascade HPP.
Bachiashvili said the feasibility study of the 53.3 MW Mtkvari HPP in Akhaltsikhe in the southern part of Georgia had already finished. The Mtkvari HPP will provide the market with 255.2 MW/h of electricity.
Another energy project is the 347 MW Tskhenistskali Cascade HPP located in neighbouring Lentekhi and Tsageri regions in the north-west area of the country. The HPP will produce 1.755 MW/h electricity per year.
Fifty percent of the funds allocated to the Mtkvari HPP and 60 percent of the Tskhenistskali Cascade HPP’s funds will be invested by international investors while the rest will be covered by GCF.
Developing local agriculture
In the few months since the GCF was established, the Fund has invested almost $60 million USD in two agricultural projects - the Diary Farm and Processing Plant and Greenhouse.
Bachiashvili believed developing the local agricultural industry would assist the sector to replace imported agriculture products and providing the market with competitive local products.
"We estimate that in the next four years the dairy products import will be replaced by 25 percent and the tomato imports by 30 percent,” Bachiashvili said.
The co-investor of the Diary Farm and Processing Plant is a Dutch-based dairy developer and the equity investment of the foreign partner of GCF will be 40 percent.
Another agriculture project is Tomato Greenhouse, located on 10x four hectare plots of land in Eastern Georgia. The co-investor of the project is French-based greenhouse developer and the annual turnover of the greenhouse will be 4,500 tons.
Both projects will be launched by the end of this year.