As a rule, you will not find many property objects in Batumi which are represented at the privatization auction in Georgia. This is mainly due to the fact that real estate in this city is in great demand. After all, Batumi is famous not only for tourism, but it is also an important industrial center with a large seaport. Particularly, proximity to the Turkish border is one of the advantages of doing business in this city. Moreover, the existing free trade agreement with Turkey contributes to active trade exchange between two countries.
There is invariably high interest of investors to affordable real estate in Batumi, which is the case with the property presented at the auction. Currently the Georgian government is looking for a new owner for the following lot: a land plot with buildings for production or storage. We recommend that you participate in the bid and become the owner of this property.
Among some of the advantages of buying property at an auction in Georgia are adequate prices (determined based on an independent assessment), lack of red tape related to the collection of various documents, and an accelerated privatization process. While investor would have to face all of the above issues under a purchase on standard terms, the Georgian government has eliminated all these obstacles in this case.
To facilitate the process of participation in the auction, an investor would definitely wish to seek high-quality legal support for the purchase of real estate. Our specialists at the Offshore Pro Group are ready to provide full legal support for the transaction; we will also assist you by facilitating the negotiations with the Georgian government so that the investor can have an access to officials at the highest level for negotiating the purchase terms and conditions. The cost of our transaction support services is 3 000 EUR.
By means of this privatization auction, the Georgian government is looking for a new owner for the following property:
Land plot with an area of 6 227sq. m. with buildings, located on Akaki Shanidze street in Batumi
The benefits of doing business in Batumi are numerous and we will discuss them in more detail futher.
Batumi is the administrative center of Adjara and the third largest city in Georgia, with a population of approximately 153,000 people. Remarkably, in Batumi, there is a positive population growth in comparison with many other settlements. This growth is mainly accounted for by the processes of urbanization, whereby people from regions are moving to Batumi, in an expectation of higher standard of living, better employment opportunities and access to developed social infrastructure.
Batumi is one of the largest ports on the southeastern Black Sea coast. It is also the end point of the Baku-Batumi railway and the oil pipeline, and is also an important transport hub, with an international airport in the city neighbourhood.
The main directions of the city’s economy: oil refining, light industry and food production, machine engineering, furniture manufacturing, production of building materials. Tea and tobacco factories, textile factories, wine cellars and factories also operate in the region. Among some of the largest enterprises are a hovercraft production plant, a plant for the production of food industry aggregates, a pharmaceutical company, but the largest taxpayer in the region is still the Batumi Oil Refinery. Adjaris-Tskali hydroelectric power station (with capacity of 16 MW) also operates in Adjara.
Nevertheless, tourism and gambling have a remarkably weighty share in the city’s economy. The Adjarian government plans to make Batumi the largest casino city in the region and become the third largest city in the world in the number of gaming halls. The contribution of the city to the development of tourism was noted at the international level. In 2019, Batumi received the World Travel Awards as “The most popular tourist destination in Europe.” It should be noted that the number of inbound visits to the city and the region by international travelers is steadily growing. In 2019, more than 2 million foreigners visited Adjara, and in the near future, the authorities of the region plan to host more than 2.5 million people annually.
The advantages of doing business in Batumi, based on the characteristics of the region:
In view of all of the above circumstances, incorporating an entity in Batumi will enable the investor to gain access to relatively cheap workforce, reduced logistics costs and duty-free access to the markets of Europe, China, Turkey and the CIS countries. It should also be reminded that Georgia ranks 7th in the Doing Business 2020 ranking. The country has one of the best tax systems in the world, with low level of corruption.
The plot, which is put up for sale by the Georgian government at the auction, is located in the southern part of Batumi, in an industrial area called Khelvachauri. The property object on sale borders with the road and the Chorokhi River in the south, with a sawmill in the east, with an asphalt plant in the north, and with Metro Beton enterprise in the west. Many more enterprises operating in various sectors, as well as small factories are located nearby.
The village of Khelvachauri is located in the west, at a distance of 700 m, which is the nearest access to social infrastructures: a supermarket (1.6 km), a shopping center “ Brendi ” (1.8 km), a bank branch (2 km), a hospital (2.3 km). There are two more hospitals located closer, towards northern direction at a distance of 1.6 km from the site. This is the direction towards Batumi, and here you will find a restaurant and a grocery store.
The distance from the lot to the following important sites and cities:
Batumi-Akhaltsikhe road (850 m) is stretching in the neighborhood of the site where the land plot is located, along which you can reach both the city and the E70 highway; moreover, 350 m to the south along the river there is another dirt road that will allow you to reach to the E70 highway much faster.
The land plot area is 6,227 sq. m. with a reinforced concrete structure of an industrial building. Concrete pillars hold the roof, with no walls mounted. Area occupied by the structure is 882.74 sq.m. and it can easily be accommodated to be used as a warehouse or other structure of industrial designation. Also, there is another smaller metal frame structure on the site, which was supposed to serve as the basis for the roof of another structure.
The plot itself is covered with small grass, without trees on it. The relief of the site is disrupted by pits and ditches. The access road to the lot is strewn with rubble, but in poor condition, as trucks constantly destroy it.
There is a power transmission line on the site, therefore construction work should be agreed with the appropriate state department.
In general, the property object is very appropriate to be used for its designated purpose, namely – for the deployment of industrial production or use as a warehouse. Moreover, the remnants of the older structure are can be accommodated to be used as a basis for the further construction.
Becoming the owner of this property in Batumi does not present any difficulties. All you need is to win at the the auction, which is held on the following conditions:
The government does not establish additional requirements for the winning bidder. The winner will need to pay off the purchase price in full within 25 calendar days and sign a purchase agreement in any of the Houses of Justice within 45 calendar days.
If you are looking for a property do start doing business in Georgia, do not waste your time and write to us at info@offshore-pro.info. Please note that the auction is time-limited and we recommend that you take advantage of this opportunity while it is available, and become the owner of this land plot on the best conditions. You are welcome to share with us your contact details and your preferences in terms of parameters of the property, and we will promptly get back to with several options to choose from.
We suggest you take a look at a few more property objects that are sold at the privatization auction:
Read the article to explore the terms and conditions for obtaining tax residency in Georgia,…
Renovated and fully equipped "turnkey" apartment in the Old Town of Tbilisi which is perfect…
Read the article to explore the renovated and fully furnished apartment in the Axis Tamarashvili…
Unstable political situation, stringent tax and fiscal regimes – these are some of the key…
Companies which are looking to gain access to a relatively small market/country, the payment system…
Starting from August, air communication with Georgia will be partially restored, which will inevitably "revitalize"…
