Ardi Group - International Investment Forum

Company Information Sheet
Insurance Company "Ardi
Company Name
Group Ltd"
l+ t!/tE/IE
E
^*+tXlEF=
Date
20/0312014
Name of Company
Insurance Company "Ardi Group Ltd"
Address
3 Vazha-Pshavela Avenue, Tbilisi, Georgia
hxa
Effi
TEL/FAX:
Telephone no.
,f
FEI
(99 5)
322
1
0I0
1
e-mail: [email protected]
0
=t,
FH
Name of Representative
ArmazTavadze
1<,&.6h
Contact Section
Identification Number
Contact Person
Diana Kakabadze, diko@ardi. ge
i€f.6trE
*IJFE
40485863 I
Ef6fEEA
Mob: (995) 591702551
Business
outline
"Ardi Group Ltd" started operations in 2010 and currently is the
and
Company's Advantage
SXE[4*"'I
LNd64
Product line/services
ruEffi
fastest-growing insurance company on the Georgian market according to the
gained premiums. Company holds insurance, life and non-life licenses.
Company offers insurance for Health, Property, Machinery Breakdown, Motor,
Special Equipment, Medical Malpractice, Cargo, Agricultural Risks and others.
E
Year of company
establishement
2010
Capital(USD)
,H+e.
940,000
E|JX+
Number of Employees
153
Amount of Sales in2012
5,000,000
'tftxFf'.
(usD)
|Ell[ttriqE_tlB
Amount of Export/Import
Export Figures
Import Figures
(usD)
ffiH
FF
Shareholder composition
ArmazTavadze - 50Yo
+#++!*+
*.4'I
:tftr,rx
Zaza Nishnianidze - 20oh
Zurab Y.hizanishvili - 3 0%
JSC TBC Bank
Main Bank
w41ffiiI
Company History
.)/\ E
1tt :F
Insurance Company "Ardi Group Ltd" was founded in 2010. In very short time company managed to become
one of the leaders on insurance market. Company has strong management team with more than 10 year
experience in the insurance industry. Nowadays Ardi Group offers number of insurance products to corporate
and individual consumers.
Business Experience
with Foreign Companies
Company actively cooperates with international reinsurance companies, such as: Lloyds Syndicate PEM 4000,
SCOR PERESTRAKHOVANYE LLC, AIG EUROPE Limited, CBL Insurance Limited, OJSC IC Allianz. and
AIG CJSC.
Main Client and Distribution Channel
* /rEFft fr &. (,NFF ft,f T I- IV
Main ClienVpurchaser/buyer
*/eEEfrft
Ardi Group has both individual and corporate clients. Company's portfolio is very diversified. Main
corporate clients are companies such as: Parliament of Georgia, JSC Telasi (electricity distribution
company in Tbilisi), EUMM, Embassy of Netherlands, BTA Bank, TBC leasons, McDonald's,
Borjomi Ltd (mineral water producing company) and many others.
Marketing route/distribution channel
FFnf r
l-P
Company fias several branches in capital city Tbilisi, as well as in the different regions of Georgia
where company's clients are served. Sales are executed in the company's head-office and branchls,
and also through the sales agents and brokers.
Business Proposal
sxffi#e
Project Title
Detail
Description
(A4
page)
one
3 Star Brand Hotel in Tbilisi
Project envisions developing internationally recognized 3 star brand hotel in capital city
Tbilisi, Georgia. Project owners held negotiations with IBIS hotels group executives to
obtain franchise and close management contract for Tbilisi hotel.
Hotel in Tbilisi will be located in Ortachala district, historic part of the old city, famous
for many tourism destinations including ancient churches, masks and synagogues,
castles, museums, art galleries, archeological sites, 18'n century bathes, botanical parks,
etc. District is saturated with nice restaurants where visitors can taste national cousin:
they have opportunity to attend national dancing and folklore concerts. Land plot in
Ortachala district was already acquired. Hotel is planned to have l0 floors with total
building area 5,500 square meters. According to preliminary sketches hotel consists of
around 100 rooms: 80 standard rooms and20 suite rooms. Hotel will be equipped with
conference and meeting rooms, business center area, restaurant, gym and swimming
pool. There will be 2-story parking lot underneath hotel for guests and personal.
Market Description. Tbilisi accommodations market is dominated by small-sized
and
medium-sized hotels that are owned by small private investors. Internationally branded
hotels account for only 826 of the available beds (mostly 4 and 5 star hotels) in the
market. Locally owned hotels account for four times the number of branded beds with
3,768 beds. Other accommodations such as family houses or hostel account for the
remaining supply. The locally owned hotels are operating as full-service hotels offering
food & beverage, meeting rooms, gym and fitness area, smaller pools and Jacuzzis.
These facilities are operated by local hotel managers that do not have the advantages of
international marketing and sales networks and the overall quality of tends to lags
behind internationally branded hotels.In2011 Jones Lang LaSalle conducted Tbilisi real
estate market analysis and after reviewing the demand and supply for hospitality sector,
found that the market for the three star internationally branded hotels could support
additional 1,000 more beds in Tbilisi. For last two years the number of international
tourists visiting country practically doubled from 2,800,000 (2011) to 5,400,000 (2013)
which made the deficit for the 3 star internationally branded hotels much more severe.
Target Market. Tbilisi hotel targets to attract middle income visitors of Capital City
preferring staying in internationally branded hotels of 2 star or 3 star. As it was said
above there is huge demand on the market for this segment. Beside individual visitors
the hotel will focus to attract corporate consumers from Georgian businesses and
governmental organizations. They often rent conference rooms and book hotel rooms
for the delegates of different seminars, workshops and business meetings. Hotel will
offer high quality services to those organizations for the competitive prices.
Financial characteristics. We derived financial model for hotel project development.
The financial calculations are based on the following assumptions: Total investment
amount - USD 7,500,000; Loan/equity ratio - 70130 (loan atSo/o interest rate for l0-year
maturity period); average room prices - USD 80 and USD 100 forthe standard and for
the suit appropriately; average occupancy rates: for the first operational year - 55%o, for
the second year - 60%o and for the third year and thereafter - 70Yo; Management and
trade mark Fees: basic fee and trademark fee - 1.8 %o and 1.7 % of sross sales
appropriately, incentive fee - 8 % of gross operating income.
Based on this assumptions project's EBITDA margin = 42 %o; net profit of the project at
the beginning is 20 Yo and it increases over the time as loan interest rate repayments
decrease gradually; project IRR= 15%.
Expectation
Business Proposal.
for JICA
Support
(Technical
Assistance,
financing for
FS
preparation,
financing for
project
(loan,
equity))
Reference:
Attachment
"JICA's
Private
Sector
Operations"
This application is made for project financing.
As we said above the total investment needed for the project implementation is
USD 7,500,000 (USD 2,120,000 equity; USD 5,380,000 loan). Current owners
already acquired land plot (current value USD 560,000). In addition, they are
mobilizing additional USD 560,000 as equity financing (so summing up to USD
1,120,000).
Current owners of project are ready to transfer about 40 % of shares to financial
investor/JlCA, if latter provides equity in the amount of USD 1,000,000. The rest of
financing can be attracted through the loan from local banks or IFIs. Financial Investor's
support for raising the loan will be also appreciated.
For detail information regarding the hotel project contact:
Dr. Zviad Kharebava
[email protected]
Skvoe: zkharebava
J.
Arm
Ge
Ardi
G

Download Report