Investment group denies Khodorkovsky’s connection with Tbilisi projects worth $200m

Investment Group Quadrum Global is refusing the notion that Russian billionaire Mikhail Khodorkovsky is connected in any way with its implementation of two large-scale projects in Georgia’s capital worth about $200 million USD.

"Mikhail Khodorkovsky does not own part of Quadrum Global. He is not a shareholder in the company. He also has nothing to do whatsoever with Quadrum’s projects in Georgia” said the company today.

"Quadrum Global is an independent private equity investment and advisory group owned by its founder Oleg Pavlov. Its investor base includes a mixture of international institutional, family office and high net worth investors,” said Quadrum Global in a statement today.

The company’s statement was released following the dissemination of information throughout Georgia stating that Russian billionaire Khodorkovsky was involved in the two major projects in Tbilisi, in which Quadrum Global was developing.

The first project was the East Point Shopping and Entertainment Centre and the other was the establishment of the Tbilisi Garden residential complex.

The Quadrum Global press release stated it was involved in a project within Georgia’s developing real estate market.

"The firm principally targets real estate opportunities in the US and the UK, but is also developing projects in several emerging markets including Georgia. Since 2005 the firm has committed over $1 billion of capital to real estate assets and has grown its total portfolio to $2 billion.”

Some details of the East Point Shopping and Entertainment Centre have already been announced. The mall is expected to open in autumn this year. As of April, 80 percent of the space had been rented, while the total investment was approaching $90 million USD.

The shopping mall will provide children’s education and entertainment centre.

Stretched over 24 hectares, the facility will occupy an area of 70,000 sqm and will be located on the motorway connecting the city centre with Tbilisi International Airport, on the eastern edge of Tbilisi known as the "Kakheti Highway”. It is a 10 minute drive from Freedom Square in central Tbilisi, a 15 minute drive from Rustavi city and about one hour from Armenia or Azerbaijan.

The area was regarded as a good transportation link with growing residential demand. It is believed the facility will enjoy approximately 70,000 patrons daily.

Project developers said this will be Georgia’s first open-concept retail and entertainment complex – a unique offering in a market with a growing demand for international quality shopping.

Phase I of the development will encompass building the foundations and an area that will accommodate a hypermarket, the city’s first DIY store, the first electronics superstore, a 27,000 sqm outdoor fashion mall, cinema and more than 150 branded shops. The main brands already evident in Georgia’s retail market will feature at the centre but will be joined by several international operators who are entering the Georgian market for the first time.

Specifically, East Point will feature a 10-screen cinema complex with IMAX technology – the first such screen in Georgia and one of the largest in Europe. It will also have a large-scale home improvement (DIY) store that will be the first of its kind in the country, and also offer a children’s entertainment and education centre spread over 3,500 sqm – also a unique feature.

The mall will also provide a bowling alley and food outlets. All shops will have front doors on the ground floor. Furthermore, visitors should have no trouble finding a park - the facility will boast more than 2,000 parking spaces.

The facility will occupy an area of 70,000 sqm. 

Regarding the second project, in Tbilisi’s Saburtalo district Quadrum Global was currently constructing the 150,000 sqm Tbilisi Garden residential complex.

The total budget of the project was $120 million USD. The project consisted of several phases; with the first phase investment value being $30 million, which will cover construction of the first residential tower with amenities as well as landscaping the whole territory.

Click here to see a video of an artist impression of what the East Point complex will look like when complete.