6th Feb 2019 13:52
LONDON (Alliance News) - Georgia Capital PLC said on Wednesday it has acquired the remaining 40% stake it didn't already own in a luxury hotel in Tblisi, Georgia for USD5.2 million.
m2 real Estate, a subsidiary of Georgia Capital and owner of the Hospitality & Commercial Real Estate business, first acquired a 60% interest in the hotel in December 2017.
The USD5.2 million payment consists of USD300,000 in cash and USD4.9 million settled through local bonds issued by the Hospitality & Commercial Real Estate unit.
At the end of 2018 USD30 million in local bonds were placed with a three-year tenor, backed by the rental income stream from commercial properties with an annual coupon rate of 7.5%.
"I am pleased to announce that our hospitality & commercial real estate business has become the 100% owner of our upcoming luxury hotel with a premium location and stunning views, which is expected to add high-quality revenues to our hospitality business. The hotel will be the only luxury hotel within m2's hospitality business portfolio," said Georgia Capital Chairman & Chief Executive Officer Irakli Gilauri.
Shares in Georgia Capital were up 0.9% at 1,110.00 pence on Wednesday.
Related Shares:
Georgia Capital