Identifier
Created
Classification
Origin
09TBILISI392
2009-02-27 05:08:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Tbilisi
how-toVZCZCXRO4122 RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG DE RUEHSI #0392 0580508 ZNR UUUUU ZZH R 270508Z FEB 09 FM AMEMBASSY TBILISI TO RUEHC/SECSTATE WASHDC 1072 INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
UNCLAS TBILISI 000392
SENSITIVE
SIPDIS
DEPT FOR EUR/CARC, EEB
E.O. 12958: N/A
TAGS: EINV EFIN GG
SUBJECT: INFORMATION ON IBERIA REAL ESTATE
REF: STATE 15786
UNCLAS TBILISI 000392
SENSITIVE
SIPDIS
DEPT FOR EUR/CARC, EEB
E.O. 12958: N/A
TAGS: EINV EFIN GG
SUBJECT: INFORMATION ON IBERIA REAL ESTATE
REF: STATE 15786
1. Summary: In response to reftel, Post's inquiries into Iberia Real
Estate (Iberia) and its umbrella company JSC Iberia Group revealed
no negative information that would preclude OPIC financing. End
Summary.
2. Iberia enjoys a strong reputation in Georgia's business arena.
Iberia is a diversified company; its branches operate in
construction and real estate development, and food and beverage
manufacturing. Iberia was an exclusive dealer of Peugeot in
Georgia, but has recently sol its automobile import business.
3. Iberia has substantial foreign investment. On the construction
side, its main shareholder is Firebird Aurora Fund. On the food and
beverage side, EBRD holds 30 percent of Iberia's shares.
4. Post is unaware of the failure of any of Iberia's construction
projects. On the contrary, the company is known for its high
quality performance. This view was confirmed by a competitor
company (CID Architecture).
5. The owners of Iberia have a good reputation, and Post is unaware
of any negative information concerning involvement in corruption,
money laundering or any other violation of the law. The only
controversial figure amongst Iberia's shareholders (more
specifically, Iberia Refreshments) was Khibar Khalvashi, a close
ally of Georgia's former Defense Minister, Irakli Okruashvili, who
is currently living in exile. However, Khalvashi sold his shares
shortly after Okruashvili's political scandals unfolded in 2007.
Ramaz Mosiashvili, chairman of the supervisory board, is a key
figure in the company and is said to be a highly competent
businessman surrounded by professionals.
6. Post notes that the situation in Georgia's construction sector
has deteriorated considerably due to the combined effect of 2008
August War and the world economic crisis. Since August, mortgage
lending has declined by nearly half, respective interest rates have
increased from four to six percent, and collateral requirements have
been tightened. Prices on real estate have dropped, reportedly by
20 percent and are expected to decline further in the near future
(Embassy Note: Accordingly, companies might be forced to recalculate
projections on sales revenues. End Note). One benefit of the world
economic crisis on Georgia's construction sector has been a
reduction in the prices of construction materials, mainly imported
from Turkey and Ukraine. After a short stagnation, the sector has
started picking up, although slowly.
TEFFT
SENSITIVE
SIPDIS
DEPT FOR EUR/CARC, EEB
E.O. 12958: N/A
TAGS: EINV EFIN GG
SUBJECT: INFORMATION ON IBERIA REAL ESTATE
REF: STATE 15786
1. Summary: In response to reftel, Post's inquiries into Iberia Real
Estate (Iberia) and its umbrella company JSC Iberia Group revealed
no negative information that would preclude OPIC financing. End
Summary.
2. Iberia enjoys a strong reputation in Georgia's business arena.
Iberia is a diversified company; its branches operate in
construction and real estate development, and food and beverage
manufacturing. Iberia was an exclusive dealer of Peugeot in
Georgia, but has recently sol its automobile import business.
3. Iberia has substantial foreign investment. On the construction
side, its main shareholder is Firebird Aurora Fund. On the food and
beverage side, EBRD holds 30 percent of Iberia's shares.
4. Post is unaware of the failure of any of Iberia's construction
projects. On the contrary, the company is known for its high
quality performance. This view was confirmed by a competitor
company (CID Architecture).
5. The owners of Iberia have a good reputation, and Post is unaware
of any negative information concerning involvement in corruption,
money laundering or any other violation of the law. The only
controversial figure amongst Iberia's shareholders (more
specifically, Iberia Refreshments) was Khibar Khalvashi, a close
ally of Georgia's former Defense Minister, Irakli Okruashvili, who
is currently living in exile. However, Khalvashi sold his shares
shortly after Okruashvili's political scandals unfolded in 2007.
Ramaz Mosiashvili, chairman of the supervisory board, is a key
figure in the company and is said to be a highly competent
businessman surrounded by professionals.
6. Post notes that the situation in Georgia's construction sector
has deteriorated considerably due to the combined effect of 2008
August War and the world economic crisis. Since August, mortgage
lending has declined by nearly half, respective interest rates have
increased from four to six percent, and collateral requirements have
been tightened. Prices on real estate have dropped, reportedly by
20 percent and are expected to decline further in the near future
(Embassy Note: Accordingly, companies might be forced to recalculate
projections on sales revenues. End Note). One benefit of the world
economic crisis on Georgia's construction sector has been a
reduction in the prices of construction materials, mainly imported
from Turkey and Ukraine. After a short stagnation, the sector has
started picking up, although slowly.
TEFFT