GGM engaged in crisis management for two building construction projects in Batumi, September, 2016. (Budget 14 000 000 GEL)
Before GGM entered into a management
✔Building a construction started in 2015 by a community ownership “Amkhanagoba”, which was given 5001 sqm land plot and 1550000 GEL from The Autonomous Republic of Ajara Region, and 1775960 GEL from a private investor.
✔ 11 months later the ownership “Amkhanagoba” ran out of money and they were in debt to concrete and armature supplier companies, construction employees as well.
✔Due to financial debts, building processes were cancelled, instead of planned 32, 8 floors have been built up.
✔The founders of the ownership have not made any contribution. Besides the apartments owned by “Amkhanagoba”, remained property selling process stopped, while the revenue from already sold property was very small.
✔ Due to financial debts, the court dispute started against building community ownership “Amkhanagoba”. The building under construction was distrained,
✔The ownership“Amkhanagoba” offered many construction companies to undertake management of the building, asked financial institutions for funding, but no one interested in the stopped construction.
✔Legal and financial documents belonged to “Amkhanagoba” were out of order and the property was not registered with land registry.
✔The state bodies were unable to support the construction building, as funding this kind of project (completion of the suspended construction) was not within state competence.
After GGM entered into a management (October, 2016)
✔ All kinds of financial debts were solved. The court dispute was completed and distraining procedure was canceled.
✔GGM took the obligation to complete the construction in exchange for receiving the remained part in the building except for the 208 apartments owned by “Amkhanagoba” and building equipments in the area as well.
✔The construction process was renewed as soon as GGM subsidiary company G2 undertook management of it.
✔ 208 apartments have been registered in the public registry on the name of the ownership “Amkhanagoba”;
✔ As a result of retail sales it was impossible to complete the construction, on the basis of preliminary consultations with the “Amkhanagoba”,G2 company sold 164 apartments to the Ministry of Internally Displaced Persons from the Occupied Territories, Accommodation and Refugees of Georgia;
✔ Consequently, 208 apartments were registered in the ownership of the building community“Amkhanagoba, 164 was sold to the Ministry, and the other part remained as a G2 company property;
✔For the purpose of conducting construction process smoothly, the company has reached an agreement with JSC “Tera Bank”, which provided 100% financing.
✔The construction process is actively inspected / evaluated by competent state departments and licensed companies. All phases of construction are measured at high quality.
✔ Building is set to open in September, 2019.
Note: Construction was completed in September, 2018 (5 months earlier than planned) and residential buildings were put into operation in November, 2018.