BGEO real estate division signs up for huge Tbilisi development

The FTSE 250 company said m2 will construct and develop a residential complex under the m2 brand name on a third-party land plot located on Tbilisi Airport Highway, in a densely populated Tbilisi suburb.

Under the agreement, m2 planned to develop a land plot of 99,000 square metres into 3,600 residential units, with a total net sellable area of 190,000 square metres.

The residential complex development would be carried out in 10 phases over the course of four to five years, and m2 would generate the fees of 10% from total construction costs, 2.5% sales commission from apartment sale revenues and 30% from the project's overall net profit.

“I am very pleased to see that m2 continues to successfully leverage its well-recognised brand name in the Georgian real estate market, to establish itself as a leading developer of third-party land,” said BGEO CEO Irakli Gilauri.

“More than 10 years of development experience of its own land bank has gained the company much-deserved trust in the local market and m2 is fully equipped to become a preferred developer among landowners.

“The agreement, signed with Georgian Retail Centers, is a strategic milestone enabling m2 to successfully deliver on its ‘asset light’ strategy.”