Poland has developed into a major European economic and investment center, while Georgia is becoming increasingly visible to Polish investors and businesses – Ilia Tsulaia, Founder and Chairman of Archi Group
Archi Group, in partnership with The Trump Organization and INVIA, is preparing to build Trump Tower Tbilisi as part of the $2 billion Downtown Tbilisi development. The company expects construction to begin in six to nine months.
Trump Tower Tbilisi is planned to rise approximately 280 metres and include nearly 800 apartments. The master plan has been approved, while work on the documentation and building permit is under way. The project has been designed by Gensler’s Washington, D.C. office, with financing to be provided by TBC Bank and Bank of Georgia.
We spoke with Ilia Tsulaia, Founder and Chairman of Archi Group about the construction timetable, the partnership with The Trump Organization, and Archi Group’s plans in the Georgian and Polish real estate markets.
Wiola Hass: Trump Tower Tbilisi has been presented as a landmark project for Archi Group. Would you describe it as the largest and most challenging development in the company’s history, in terms of scale, investment value and execution complexity?
Ilia Tsulaia, Founder and Chairman of Archi Group: Trump Tower Tbilisi is the signature landmark of Downtown Tbilisi, an approximately USD 2 billion mixed-use master development comprising six towers and approximately 600,000 square metres of gross building area.
Archi Group has accumulated extensive experience over more than 20 years in the market and has always successfully introduced innovations and collaborated with international teams. One thing I can say with confidence is that this project will hold an important and prominent place in our portfolio.
I’d also like to note and emphasize here that Georgia offers highly attractive real-estate investment conditions: capital gains tax is 0% after two years of ownership and 5% if sold earlier, while rental yields average around 9%, compared with roughly 5% in Dubai, and a real-estate investment of $150,000 also qualifies investors for a residence permit. Property prices in Tbilisi are still approximately 2.5-3 times lower than in Dubai, but with annual capital appreciation reaching around 18%, and over the next 5–7 years, average property prices in Tbilisi are projected to reach Dubai’s current prices.
What is the project’s current status in terms of permits and regulatory procedures, design, financing and sales?
Construction has not yet started, the master plan has been approved. The work required to obtain the Building Permit and prepare the relevant documentation is currently in progress.
The architectural design has been developed by Gensler’s Washington, D.C. office. Trump Tower Tbilisi is planned as a 62-storey tower reaching approximately 280 metres.
The development is financed through a comprehensive financing package provided by TBC Bank and Bank of Georgia, whose parent groups are listed on the London Stock Exchange.
The project will include approximately 800 apartments, ranging in size from approximately 40 sq.m. to 350 sq.m.
In terms of sales, the primary target market is Georgia, where the project is already very popular. International target markets include Poland, Eastern Europe, the Middle East and Israel.
What is the realistic timetable for breaking ground?
We expect construction to begin in approximately 6–9 months, once the Building Permit has been obtained and the relevant documentation is ready.
How did the partnership between Archi Group and The Trump Organization come about?
The discussions took place over the course of several months, and the process moved relatively quickly. The Trump Organization formally announced the project in April, marking the collaboration publicly.
How are responsibilities divided among Archi Group, the other investors involved and The Trump Organization? In particular, what role does each party play in development, financing, branding, design supervision and sales?
The project is being developed in partnership with The Trump Organization. Archi Group and INVIA are the main partners and developers of Downtown Tbilisi, with The Sapir Organization serving as co-developer and Block Stone Capital, Finvest Georgia and Vector Group participating as minority partners.
The architectural design of Trump Tower Tbilisi has been developed by Gensler’s Washington, D.C. office, while the project’s financing is provided through a comprehensive financing package from TBC Bank and Bank of Georgia.
The Trump brand has strong global recognition, but it also attracts political attention and controversy. How do you assess and manage the potential reputational risk associated with the brand?
For Archi Group, this is first and foremost a major international real estate development.
The Trump brand is globally recognised in luxury real estate and hospitality, and Trump Tower Tbilisi is intended to bring that internationally recognized standard of luxury and architectural excellence to Georgia.
At the same time, the project should be viewed within the broader context of Downtown Tbilisi – a landmark development designed to strengthen Tbilisi’s position as a destination for international investment, business and luxury living.
Ultimately, our focus is on the quality, scale, location and long-term value of the real estate development.
Archi Group has recently opened an office in Warsaw. What was the strategic rationale behind entering the Polish market, and which market indicators were most persuasive in supporting that decision?
Poland is one of the most dynamic and important real estate markets in Central Europe, with a large and increasingly sophisticated investor base. For Archi Group, the decision was driven by several factors: the scale of the Polish market, growing interest from Poland, investment activity, and particularly the increasing connectivity between Poland and Georgia.
We also see Warsaw as a strategic regional hub. Our objective is not simply to open an office, but to build a platform through which we can develop long-term relationships with investors, brokers, wealth managers and business partners across Poland and the wider Central European market.
What would need to happen for Archi Group to move beyond sales activity in Poland – for example, by establishing a local development company or launching its first project in the country?
We are approaching the Polish market in stages. The first priority was to establish a strong partnership with local actors, agencies to understand the market from the inside through clients, brokers and institutional relationships. Next step was to open local office and maintain efficient, faster cooperation with local partners through our office. If we see sufficient demand and identify the right opportunity to expand – we will consider it.
Why is this the right moment for Archi Group to strengthen its presence in Poland?
We believe the timing is particularly interesting because Poland has developed into a major European economic and investment center, while Georgia is becoming increasingly visible to Polish investors and businesses.
There is also a broader opportunity to connect two markets rather than simply sell one market into another. Archi can bring its development expertise and Georgian portfolio to Poland, while simultaneously exploring opportunities where Polish capital, expertise and partnerships can contribute to projects in Georgia and potentially elsewhere.
Do you see Poland primarily as a source of buyers for projects in Georgia, or as a long-term market for operational expansion?
The Warsaw office is intended to become a comfortable platform for cooperation with local partners and presenting our projects to potential investors.
Though we don't look at Poland simply as a sales market. We look at it as a potential strategic base for Archi's international business-making.
Could Archi Group’s presence in Poland eventually lead to projects involving The Trump Organization in the Polish market?
Today, our focus is on Trump Tower Tbilisi, which is our key announcement at this time.
Deweloperzy z mocnymi wynikami za I półrocze. WIG-Nieruchomości odzwierciedla perspektywy sektora
