On November 17, 2022, together with a partner from Canada, we secured our first co-investment in Georgia - a 47m2 apartment under construction in Tbilisi. Looking to put it on blockchain next. Exploring NFT.
Long story short, back in April 2022, while vacationing in Batumi, I come up with an idea - investing in booming Batumi real estate by attracting crypto investments. Original idea was to issue a crypto token, raise the funds, purchase the apartment under construction and sell it for profit once it is done.
A few months latter, Uday, co-investor from Canada contacted me, showing keen interest in this project, but in a more classical FIAT investment approach. I agreed.
Scouting Batumi real estate for the second time, at the end of September 2022 I was left a bit disappointed, the price seemed too high, and the apartments seemed too small... I started to explore what are our options in Tbilisi and was left surprised to find, there are apartments for sale for about $500 per square meter.
I contacted a few real estate developers in Tbilisi and narrowed down our potential investment to Eco City Samgori project in Tbilisi.
See, how I went exploring this area with a German friend: Scouting Potential Apartment Investment in Tbilisi (Samgori Ecocity)
After my initial scouting, I went to the METI office, discussed with developers more details and we agreed to proceed with investment in a small 1-bedroom apartment with a balcony located on the 5th floor
The rest was about sending back and forward draft agreements, dealing with payment schedules, and negotiating better prices (in the end we have to pay $27,260 in the next 20 months). Most of the forth-and-back thing was done over Whatsapp and Email.
Our buying price with a 0% monthly installment is $574 per sqm
My investment in this project is 10%, while my partners are 90%. We have our mutual agreement that I will additionally get $2,000 once we will sell this apartment.
Today we sent the first funds to the METI developer to secure our spot. Total sent 1,938 GEL or about 2.6% of the total purchase price.
Looking to sell this apartment in the price range of $750 - $850 per sqm once it is finished (in 20 months). that would mean about $170 - $270 profit per square meter. $8,000- $12,500.
29% - 46% potential profit in about 20 months.
I would say the prospect looks quite good
While the project is still in the construction phase I have an idea to put it on the blockchain, minting an NTF, for example. That would ask for a better understanding of Georgian legal law. In general, as we are two co-owners now, I see we could make a smart contract for example.. more studies are required.
As this is our first investment, it guess there are a lot of known unknowns, we still have to discover, and also many unknown unknowns.
Interested to invest in projects like this, visit the TerraMatris website or follow me on Twitter to learn more