Managing a Building Project in Crisis

GGM engaged in crisis management for two building projects in Batumi in September, 2016. (Budget 14 000 000 GEL)

Before GGM entered into the management, the projects were in crisis. Due to financial difficulties, a court action was started against the building community ownership “Amkhanagoba”. The building under construction was seized by the court, instead of the planned 32, only 8 floors were completed.
“Amkhanagoba” ran out of money and they were in debt to construction employees and vendors of concrete and armature. Legal and financial documents belonging to “Amkhanagoba” were out of order and the property was not properly registered with the land registry.
After GGM undertook management of the construction project, financial issues were solved. The court dispute was resolved and and the distraining procedure was canceled. GGM took on the obligation to complete the construction in exchange for receiving the remaining part of the building except for building equipment in the area and 208 apartments owned by “Amkhanagoba”.
The building construction was financed by JSC "Tera Bank" Georgia. The building opened in November, 2018.