Bgeo Group PLC m2 Real Estate signs its largest franchise deal (7930Y)
December 08 2017 - 2:01AM
UK Regulatory
TIDMBGEO
RNS Number : 7930Y
Bgeo Group PLC
08 December 2017
London, 8 December 2017
BGEO Group's real estate subsidiary signs its largest ever
franchise agreement
BGEO Group PLC (the "Group" or "BGEO"), announces that the
Group's real estate subsidiary, m(2) Real Estate ("m(2) " or "the
Company"), has signed its largest ever franchise agreement as part
of its "asset light" strategy. m(2) will construct and develop a
residential complex under the m(2) brand name on a third-party land
plot located on Tbilisi airport highway in a densely populated
Tbilisi suburb. Under the agreement, m(2) plans 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 will be carried out in ten phases over the
course of four to five years and m(2) will generate the following
fees: 10% from total construction costs, 2.5% sales commissions
from apartment sale revenues and 30% from the project's overall net
profit.
Irakli Gilauri, BGEO CEO commented: "I am very pleased to see
that m(2) 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. More than 10 years of
development experience of its own land bank has gained the Company
much deserved trust in the local market and m(2) is fully equipped
to become a preferred developer among land owners. The agreement,
signed with Georgian Retail Centers LLC, is a strategic milestone
enabling m(2) to successfully deliver on its "asset light"
strategy."
Name of authorised official of issuer responsible for making
notification: Giorgi Alpaidze, Group CFO
About BGEO Group PLC
The Group: BGEO Group PLC ("BGEO"- LSE: BGEO LN) is a UK
incorporated holding company of a Georgia-focused investment
platform. BGEO invests, via its subsidiaries, in the banking and
non-banking sectors in Georgia (BGEO and its subsidiaries, together
the "Group"). BGEO aims to deliver on its strategy of: (1) at least
20% ROAE from its Banking Business; (2) 15%-20% growth of its
Banking Business loan book; (3) at least 25% IRR; and (4) up to 20%
of the Group's profit from its Investment Business. On 3 July 2017
BGEO announced its intention to demerge BGEO Group PLC into a
London-listed banking business (the "Banking Business") and a
London-listed investment business (the "Investment Business") by
the end of the first half of 2018.
Banking Business: Currently representing at least 80% of the
Group's profit, will comprise: a) retail banking and payment
services, b) corporate investment banking and wealth management
operations and c) banking operations in Belarus ("BNB"). JSC Bank
of Georgia ("BOG" or the "Bank") is the core entity of the Group's
Banking Business. The Banking Business will continue to target to
benefit from the underpenetrated banking sector in Georgia
primarily through its retail banking services.
Investment Business: Currently representing up to 20% of the
Group's profit, will comprise the Group's stakes in Georgia
Healthcare Group PLC ("Healthcare Business" or "GHG") - an LSE
(London Stock Exchange PLC) premium-listed company, Georgia Global
Utilities ("Utility and Energy Business" or "GGU"), m(2) Real
Estate ("Real Estate Business" or "m(2) "), Teliani Valley
("Beverage Business" or "Teliani") and Aldagi ("Property and
Casualty Insurance Business" or Aldagi"). Georgia's fast-growing
economy provides opportunities in a number of underdeveloped local
markets and the Investment Business will target to capture growth
opportunities in the Georgian corporate sector.
JSC BGEO Group has, as Bank of Georgia has, as
of the date hereof, the of the date hereof, the
following credit ratings: following credit ratings:
Fitch Ratings 'BB-/B' Fitch Ratings 'BB-/B'
Moody's B1/NP (FC) Moody's 'Ba3/NP' (FC)
& B1/NP (LC) & 'Ba2/NP'
(LC)
For further information, please visit www.bgeo.com or
contact:
Irakli Gilauri Michael Oliver Giorgi Alpaidze
Group CEO Adviser to the Group CFO
CEO
+995 322 444 109 +44 203 178 4034 +995 322 444 190
igilauri@bgeo.com moliver@bgeo.com g.alpaidze@bgeo.com
This news report is presented for general informational purposes
only and should not be construed as an offer to sell or the
solicitation of an offer to buy any
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCKMMGZVRNGNZG
(END) Dow Jones Newswires
December 08, 2017 02:01 ET (07:01 GMT)
Bank Of Georgia (LSE:BGEO)
Historical Stock Chart
From Apr 2024 to May 2024
Bank Of Georgia (LSE:BGEO)
Historical Stock Chart
From May 2023 to May 2024