In the beginning let me introduce myself. I’m Giorgi Napishvili the vice-director of A.I.S.I. LLC from Tbilisi, Georgia. I’m the vice-director of a company A.I.S.I. LLC from Tbilisi, Georgia. Our business is to administrate a real estate properties of banks and developer companies. I'd like to tell you that  our company has a skill  to operate a real estate and a hotel business (now we administrate a new hotel at the Black Sea near Batumi-city) and we’d like to offer you to use our experience and knowledge in this business and local area to get a profit.

Our company offers the investor a Grand Palace for investment in the capital-city of Georgia Tbilisi.

SHORT DESCRIPTION OF PROPERTY.

Property is located on the Vaja-pshavela avenue in the district of Saburtalo.

An area of a land - 4375.00 sq.m.
There are four buildings on a land:
1.    building#1 4317,59 sq.m.
2.    building #2:   376 sq.m.
3.    building #3:   300 sq.m.;
4.    building #4:   50 sq.m. ;

Asking price: $4.400.000.
The Grand Palace (building#1 ) has approximately 140 rooms (but one need to change partitions of rooms and reduce their amount.
The Grand Palace is for investment and we have an idea about it.

FIRST ABOUT AN OWNER OF A PROPERTY.

The owner is a Joint Stock Company (JSC) SMS. The JSC SMS is funded by the owner bank specially for this property to sell it in the future because 100% of shares of this house belongs to the JSC  SMS. If buyer buys 100% of shares of JSC  SMS it will not be charged by VAT (18%) because shares are not obligated by taxes and a houses and a land will go to a new owner. The JSC  SMS never has been working and has not any state tax or other debts. Please, see an attached image file - Issueofpublicregistry.jpg . This file [Issueofpublicregistry.jpg]  is a non-official copy of an official document (see a file DS2411878.pdf ) issued by THE NATIONAL AGENCY OF PUBLIC REGISTRY (http://www.napr.gov.ge/?lng=eng-   ) . “Issueofpublicregistry.jpg” is with a translation made by me but you can check its correctness and identify to DS2411878.pdf .  You also can check an official  document - a cadastral  map la_mappa.pdf . You can see this house on a official site of  Tbilisi government http://propertymap.tbilisi.gov.ge/Default.aspx?map=&target=44.7586904740543,41.7264193899513,22&session=eab    and on a Google map (see attached files: Palacelocationongoogle.jpg and palace on a palaceonagooglemap.jpg).

ABOUT VAJA-PSHAVELA AVENUE.

It is one of the largest and occupied roads in Tbilisi. Its length is more 4 km. and it  crosses through a district Saburtalo. Besides it is a location for many of companies and organizations.


ABOUT A REALITY OF A  PRICE.

As I said to you the price of this property (an  area of a land 4375.00 sq.m. and building#1 4317,59 sq.m.)  is $4400000. To check what kind of price it is, please, see the announcements in  a Georgian real estate market web-site http://makler.ge/index.php?pg=ser&cat1=2&cat2=2&city=1&raioni=1&ubani=4&qucha=368&mg3=2&ser=1   ( please, change a language from Georgian to ENGLISH).
At the left side in a folder “Type of real estate” select “commercial space”. In “Area” select “Vake-Saburtalo”. In “District” – Saburtalo; In “Street” list find – Vaja-pshavela ave. You will see that prices are varying from $231 to $3500 and if you see prices for a free land  price varies from $367 to $2419. Prices are basing on a location of a property. The property we offer is  on a road on the crossroad place and its real price is more than $1000.

ABOUT BUSINESS ATMOSPHERE  AND TOURISM POTENTIAL.

During the last five years, tourism business is rising in Georgia every year and continues to grow up.  See statistics of tourism here   http://www.dotr.itnovations.ge/upload/file/I_Quarter_Statistics_of_International_Travellers.pdf , http://www.dotr.itnovations.ge/upload/file/II_Quarter_Statistics_of_International_Travellers.pdf  ,  http://www.gnta.ge/upload/file/2010_four_quarters_-_Survey_of_International_Travellers_at_National_Borders_of_Georgia.pdf   , http://www.gnta.ge/upload/file/2000-2011_Arrivals_foreign_travellers_at_national_borders_of_Georgia.pdf   . Also, please, see attached .xls files about statistics for January and February of 2012.  In same time the hotel business does not quickly follow to tourists’ "invasion" though very many hotels have opened in last years.  Anyway,  there are not enough hotels in Georgia. Especially there are very little amount of "3 stars" hotels here. The Ministry of Economy and Sustainable Development announced that now all hotels of Georgia cover only 40% of incoming guests requests. The government tries to stimulate as tourism as well as a hotel and a real estate business. I think it will be interesting for you to read this article about of international real estate companies doing business in Georgia  http://www.nytimes.com/2011/03/11/business/global/11donald.html?_r=1&scp=1&sq=trump&st=cse  . Also http://internet.ge/?l=EN&m=1&sm=0&ID=1614

OUR IDEA ABOUT THIS PROPERTY.

The size of the building# 1, area of a land and a location gives us opportunity to upgrade this Grand Palace to “3 stars” hotel.
If investor upgrades this palace to “3 stars” and if price  rates for apartments will be from $50 to $100 a day the hotel will be occupied at least  till (minimum) 70% a month and till 95% on a summer holidays, in Autumn  (as this time is very beautiful in Georgia) and in st. Christmas celebrations. NOTE! This is a competitive price because  prices for an apartments in “5 stars” hotels in Tbilisi are between $120 to $250 a day + breakfast $15-25.  For example, please, see a hotel “Old Tbilisi”  (http://www.hoteloldtbilisi.ge/   ). It is on a very beautiful place on the high  bank (on a plateau) of the river Mtkvari. It is not “5 stars” hotel but see its rates here http://www.hoteloldtbilisi.ge/?page_id=154   . Besides , one must note that though it has a very beautiful view  but it has problems with a transport reach and parking places. Anyway this hotel is for sale and an asking price is $15,000,000.


APPROXIMATELY CALCULATIONS FOR UPGRADE A BUILDING # 1.

 (We’ve calculated the costs for 100 rooms).
Full renovation will be cost approximately $2.270.000. Round up to $2,300.000.

To book a hotel furniture at Georgian firms:
1 sq.m. furniture costs 200 Lari (Georgian currency. $1=1.63 Lari). So, 200 X ~10 sq.m. = 2000 Lari. Total- 200000 Lari (that is about $122699. Round up to $130000 or even to $150000).
Total = $2.450.000. For any case, round up a price to $2,500.000.
Total investment price = $6.900.000.

Now, if 100 apartments (from 140) will be occupied during full month for at least  $50 a day  it will be occupied  without problems and give us income $5.000 a day ($150.000 a month) and this is an income only from rent out of apartments because we did not calculate income from restaurant and from other charged services yet. As you see we made only approximate calculations which show that investments will be taken back during in about four (4) years and it will reach  income approximately $7.200.000.