Full legal support and mediation between the investor and the government of Georgia on the project: land for a farm/warehouse/production in the neighbourhood of Poti

New real estate objects continue to appear at a privatization auction in Georgia, which may be of interest to investors. Now we will consider a large plot of land without buildings in the village of Akhalsopeli in the Khob municipality. An attractive feature of this lot is its location in relative proximity to the sea and the port of Poti.

As you may recall, at privatization auction in Georgia objects are put on sale which are on the state balance. The government exercised immense efforts in order to attract potential buyers and increase interest in the auction – an independent expert assessment was made on all property objects, borders and easements were determined; investment plans were developed. And the winners of the auctions get the right to register ownership to the purchased property   following a simplified procedure. Owing to facilitated solution of these issues, buying an asset in Georgia at an auction for doing business is much more profitable than buying a property under standard conditions.

However, the potential bidder must be familiar with the intricacies of the Georgian legislation in order to become a successful bidder at the auction. In this regards, Offshore Pro Group is best positioned to provide high-quality legal support for the transaction; with our help it will be possible to considerably save your time and resources. It should be noted that our staff includes experienced Georgian lawyers who are well versed in local law. And we will help you to arrange a meeting with representatives of the Georgian government, if you need to discuss the details of the transaction at a higher level. The cost of our services is 3 000 EUR.  

Investment Property in Georgia: Project Overview

A lot was put up for sale at a Georgian state auction, which might be of interest to businesspeople looking for a land plot to be used as a farm, warehouse, or to establish an industrial production, or a winery. It would be most beneficial option to use the object presented below for the abovementioned purposes:

Two adjacent land plots without buildings, with an area of 19,743 sq.m. and 280 273 sq.m. Total: 300 016 sq.m.   

You may also wish to use them for other purposes. Let’s explore the details of the lot.

Investment Property in Georgia: Region Overview

Plots of land for sale are located in the village of Akhalsopeli in the Khob municipality. This is the region of Samegrelo-Upper Svaneti, the historical region of Megrelia. The regional center of the region is the city of Khobi.

About 30,000 people live in the municipality, the population of the district center is about 4,300 people. In Khobi, there is a railway station of the Tbilisi-Zugdidi line (trains travel to Kutaisi, Zugdidi and Tbilisi), and the Tbilisi-Leselidze highway passes through the city.  

Important sectors of the regional economy are: oil refining, agriculture, production of building materials. Large enterprises in the region include Kulevi Oil Terminal, PrimeBeton, Sharm cooperative (drywall production), Kemularia (bay leaf), bakery, Quarry (crushed stone production). There are two hotels in the region (both located in Khobi). The regional center also has several bank branches, pharmacies, cafes, a restaurant, a shopping center and a market for your convenience. It should be noted here that social infrastructure in the regions is not very developed.

Investment property in Georgia: location of land plots

The lot, which is currently being sold at the auction, is located east of the village of Akhalsopeli (1.5 km). It is located at a distance of 300 km from Tbilisi, 25 km from Poti (the nearest seaport), 51 km from Kutaisi (the nearest international airport), 13 km from Khobi (regional center) and 2.7 km from the nearest railway stations (Senaki-Poti line). Distance from the land plots to the E60 international highway connecting Poti, Tbilisi, Rustavi and Sarpi (border with Turkey) is only 200 m.

From the north and east, land plots  border with the local road connecting the village of Akhalsopeli with the motorway, in the south and west they border with other land plots. In the east, a new winery operates across the road from the lot, which was opened only in 2016 by Khareba company. Winemaking is gaining popularity and is becoming one of the promising areas in the regional economy. There are a large number of unoccupied land areas which can be used to grow vineyards. Also, Kolkheti National Park is in the neighborhood (at a distance of 4 km from the land plot), which covers an area of 28,940 ha. 

The Georgian government proposes to use the plots for production or manufacturing, yet, you are free to choose the designated use of the land plot, for example to organize a warehouse or build a winery.

Investment Property in Georgia: Lot Review

In total, land plots occupy an area of ​​300 016 sq.m. They are even at surface, with no buildings and perennials on it. They are very convenient to reach to through a driveway.

The location of the international highway nearby, obliges the new owner of the property to coordinate any construction on the land plots with the Department of Highways of Georgia. There are no other restrictions and easements in the plots.

Georgia Investment Property: Auction Terms

Large land plots can be purchased at a state auction, which is held on the following conditions:

• starting price of the lot – 1 240 000 GEL (about 433 000 USD);   
• the minimum increase in the lot price is 5,000 GEL (about 1,750 USD); 
• Guarantee payment – 620,000 GEL (216,400 USD). 

A potential buyer has the right to inspect the lot before the end of the auction. You can make a guarantee payment:

• By cash in any branch of Liberty Bank;
• By payment card, using the functionality of the site where the state auction is held;
• By activating an irrevocable bank guarantee.

In addition, the auction winner is obliged:

• within 45 calendar days, to pay the full price of the lot and sign the sales contract in the legal department of the National Agency of State Property of Georgia. In case of refusal to conclude an agreement, the bidding is canceled, and the guaranteed contribution is transferred to the country’s budget;
• within 48 months (4 years) after signing the contract to commission the enterprise at the sites;
• to employ at least 400 Georgian citizens at the enterprise for a period of at least 2 years.

The government does not establish other requirements for the winner of the auction.

If you are interested in the above lot, and you want to participate in the auction, write to us by e-mail: [email protected]. We can also pick up other real estate in Georgia for you, which is sold at a privatization auction. 

We  would like to bring to your attention several more objects that are of potential interest to investors:

• one of theTbilisi attractions –  Rike concert hall building ;
• Land in a great location for building hotels in Borjomi .