Magnat Real Estate Opportunities, the German property developer focused on Eastern Europe, has made its first investment in Georgia. Together with a local partner and another co-investor, it has acquired a 20,136 m[sup]2[/sup] plot of land in the Georgian capital Tblisi. Magnat and its partners plan to construct a speciality retail market called 'Digomi Shopping' on the site, which will have 30,000 m[sup]2[/sup] of usable space and 300 parking spaces.
Magnat Real Estate Opportunities, the German property developer focused on Eastern Europe, has made its first investment in Georgia. Together with a local partner and another co-investor, it has acquired a 20,136 m2 plot of land in the Georgian capital Tblisi. Magnat and its partners plan to construct a speciality retail market called 'Digomi Shopping' on the site, which will have 30,000 m2 of usable space and 300 parking spaces.
Magnat's 56.25% share of the land cost it $ 2 mln (EUR 1.44 mln), but said the total project costs for the shopping centre, expected to be completed in 2009, will amount to $20 mln (EUR 14.4 mln). The firm expects that a rental yield of up to 30% can be achieved, thanks to strong demand for commercial premises and the favourable land and construction costs. It therefore believes that a development yield of up to 100% on capital invested is possible on the eventual sale of the property.
