GRDC Raised US $105 Million Institutional Equity (The Marblerton Property Fund, Altima Central Asia Fund, CITI’S Global Special Situations Group and EBRD) Prior to Seeking Stock Exchange Listing
16 Jan 2008
Moscow, January 16, 2008 – Leading Georgian property developer, THE GEORGIAN RECONSTRUCTION AND DEVELOPMENT COMPANY (GRDC), has closed a US $105 million institutional equity round for new shares in the company ahead of a stock exchange listing planned for 2008.
The Marbleton Property Fund, Altima Central Asia Fund and Citi’s Global Special Situations Group invested US $90 million to become shareholders, joining anchor investor The European Bank for Reconstruction and Development (EBRD) which purchased a US $15 million stake earlier in 2007.
GRDC’s President, Mamuka Khazaradze, commented “We are delighted to welcome our new partners: their experience, reputation and capital will help the company move to a new phase in its growth. Significantly, their involvement also confirms Georgia as an attractive investment target for international, institutional capital seeking exceptional returns”.
The Marbleton Property Fund, GRDC’s largest new investor, subscribed to US $50 million in this round. Jon Hodnett, representing Marbleton, joins the Board of GRDC, commenting “GRDC represents a highly attractive investment opportunity, uniquely combining an experienced, international team with a high quality collection of real estate assets”. Altima Central Asia Fund subscribed for US $25 million and Citi’s Global Special Situations Group for US $15 million.
GRDC has also secured US $42.6 million in construction finance from EBRD in 2007, and latterly an additional US $48 million from IFC, the commercial arm of the World Bank.
The debt and equity facilities were arranged by Argo Saint George LLP, an independent corporate finance adviser with offices in London and Tbilisi.
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