m2 to finish suspended 30 residential blocks
By Natalia Kochiashvili
Thursday, September 12
As for the 2,500 families affected by the construction company "Sveti", the Tbilisi mayor Kakha Kaladze stated that a Memorandum of Understanding has been signed with the construction company m2, based on which construction will start and after their completion, each family will receive an apartment.
These are projects located on Mirtskhulava Street, Nutsubidze Street and Chkondideli Street, comprising a total of 30 residential blocks.
m2 is ready to commence construction work upon fulfillment of all the prerequisites stipulated in the contract with "Sveti". Specifically, construction will begin as soon as the project agreement and construction permits are received, and construction will be completed within 3 years of the permit being granted.
The investment cost of the project is GEL 250 million and is fully funded by m2. The construction-engineering direction of the facilities will be carried out by m2 construction company BK Construction.
While concluding the memorandum, Tbilisi Mayor Kakha Kaladze said the agreement was unprecedented. According to him, work has also started to positively solve the problem of the victims of "Center Point".
The mayor of the capital instructed the vice mayor Irakli Khmaladze to set up a preventive mechanism in the light of international experience to prevent facts of civilian casualties from construction companies. These problems are usually since developers sell flats before they are built and some of them dishonestly abandon people that have already paid.
The development company m2 released a statement to the citizens affected by the construction company “Sveti”. Representatives of the m2 plan to start meetings on September 23. The statement also notes how and in what ways people should apply to the developer who will complete unfinished construction by Sveti.
On July 2, Tbilisi City Court sentenced Givi Jibladze, the founder of the "Sveti" company to eight years in prison, and Tornike Janelidze, the "Sveti" CEO, was sentenced to six years and six months in prison. They were arrested on charges of fraud, misappropriation of funds and abuse of authority.
Tbilisi Mayor stated at the government session that the company "Industrial City" won the auction announced by Tbilisi City Hall for the implementation of Radio City project and purchased the land with an initial privatization fee of GEL 22.9 million for GEL 23.3 million.
“Industrial City” Ltd was registered on June 19, 2019. The 100% share of the company is owned by another company, “City Loft”. 100% shareholder of City Loft itself is the founder of Adjara Group, Temur Ugulava. City Loft also owns several large assets of the Adjara Group, including Hotel Stamba and other facilities.
The company that won the auction of Radio City is obliged to implement the project following the existing concept on the real estate transferred to the ownership. Changes to the concept are permitted by agreement between the parties. According to the documentation, the winner must fulfill the $ 8 million investment commitment within 4 years of signing the contract. Within one month after the contract is concluded, the winner of the auction shall submit an unconditional and unquoted bank guarantee of at least 10% of the investment liability - USD 800,000 (eight hundred thousand) equivalent in GEL.
“This particular project was also in my pre-election plan. We want to develop a project here that will be a new center of attraction for Gldani, Mukhiani, and Temka... We have developed a concept and accordingly here will be arranged food facilities, shopping areas, nightclubs, multifunctional spaces, fitness area, swimming pool, movie theater, recreation area, entertainment centers, media center, mini children's town, museum of sciences, culinary space, etc,” said Kaladze and added that "the winning group is also interesting. It owns such important and interesting facilities in the capital as Hotel Rooms, Hotel Stamba, Fabrika, etc. I am sure we will do a great project,” Kaladze said.