REAL ESTATE PROJECTS

REAL ESTATE PROJECTS

Disclaimer In this document, "presentation" shall mean and include the document that follows, any oral briefing and any question-and-answer session in connection with it. By attending or reading the presentation, you will be deemed to have agreed to the obligations and restrictions set out below. The sole purpose of this presentation is to provide information on projects (the Projects ) of Development Solutions LLC (the Company ) in order to assist you in assessing your interest in these Projects. This presentation is strictly private and confidential and must not be disclosed to any other party. It is not an offer or invitation to the public and should not be reproduced or circulated or used for any purpose other than assisting with the assessment of the Projects. This presentation does not purport to contain all the information that may be required by the recipient to assess its interest in the Projects. The recipient should conduct its own independent investigation and assessment as to the validity of the information contained in this presentation, and the economic, financial, regulatory, legal, taxation, stamp duty and accounting implications of that information. The recipient represents that it is not relying on any recommendations or statement of the Company or its representatives. Except as required by law, the Company and its respective directors, officers, employees, agents and consultants make no representation or warranty as to the accuracy or completeness of the information contained in this presentation, and take no responsibility under any circumstances for any loss or damage suffered as a result of any omission, inadequacy, or inaccuracy in this document. This presentation may contain certain forward-looking statements, forecasts, estimates, projections and opinions ( Forward Statements ). No representation is made or will be made that any Forward Statements will be achieved or will prove to be correct. Actual future results or operations could vary materially from the Forward Statements. Similarly, no representation is given that the assumptions disclosed in this document upon which the Forward Statements may be based are reasonable. The recipient acknowledges that circumstances may change and the contents of this document may become outdated as a result. This presentation does not constitute an offer, invitation or recommendation. The information contained herein does not, and will not, form any part of a contract or offer for sale. Furthermore, it does not constitute an offer capable of acceptance and no binding commitment may be entered into on the basis of the information contained herein. This presentation, including this disclaimer, shall be governed by and construed in accordance with Georgian law and any claims or disputes, whether contractual or non-contractual, arising out of, or in connection with, this presentation, including this disclaimer, shall be subject to the exclusive jurisdiction of the Georgian Courts.

CONTENTS SECTION PAGE 1. Highlights 3 2. General Macroeconomic Overview 5 3. Georgia Real Estate Industry Overview 12 4. Silk Road Group Company Background 16 5. Silk Road Group Assets 18 6. Silk Road Group Development Projects 21

1 Section HIGHLIGHTS

SILK ROAD GROUP FUNDAMENTALS Fundamentals - A very positive storyline for Silk Road Group both in terms of existing real estate assets and development pipeline projects. Silk Road Group has a very clear real estate strategy to develop prime real estate across Georgia with striking architectural designs and in so doing maximize the asset value, stakeholder internal rate of return and net present value of the projects by ensuring the highest and best use for the real estate. The Silk Road Group real estate development strategy is also underpinned by a strong consideration to the environmental impacts of the real estate developments throughout Georgia. Key Asset Locations - One of the trading fundamentals is location the Silk Road Group existing hotel assets (Radisson Blu Batumi and Radisson Blu Iveria Tbilisi have exceptional city center locations. The Silk Road Group development projects also have prime real estate locations in Tbilisi, Batumi and Tsinandali with detailed case studies presented in sections 5 & 6 of this information memorandum. Key Product - All assets are of very high quality and can be considered core assets. They represent a secure investment. International Brand - The strong international hotel management brand ensures the existing hotels prime status in the region. Exceptional timing - Timing is key when investing in real estate and there are positive fundamentals for Georgia and real estate in Georgia. Ease of doing business in Georgia - Georgia is an attractive and relatively safe country for global investors. Ranked globally in the top 10 countries for ease of doing business according to the World Bank survey in 2014 of 189 countries, Georgia also has zero restrictions on currency convertibility or repatriation of capital & profit and zero capital gains tax, personal income tax for interest, dividend and royalty profit tax of only 5%. 3

2 Section GENERAL MACROECONOMIC OVERVIEW

GEORGIA - LOCATION Association Agreement with European Union Favorable Business Climate Georgia is a country in the Caucasus region of Eurasia. It s total area is 69,700 square kilometers. The capital is Tbilisi. Located at the crossroads of Western Asia and Eastern Europe, it borders to the west with the Black Sea, to the north with Russia, to the south with Turkey and Armenia and to the southeast with Azerbaijan. Georgia is a unitary, semi-presidential republic with the government elected through a representative democracy. The country is a member of the United Nations, the Council of Europe, the World Trade Organization, the Organization of the Black Sea Economic Cooperation, the Organization for Security and Cooperation in Europe, the Community of Democratic Choice, the GUAM Organization for Democracy and Economic Development and the Asian Development Bank. On the 27 th of June 2014 the EU and Georgia signed the unprecedented Association Agreement, which includes a Deep and Comprehensive Free Trade Area (AA/DCFTA). The Agreement significantly deepens political and economic ties with the EU under the Eastern Partnership. 3.7 million POPULATION $ 3 681 GDP PER CAPITA Growing Real Estate Market Attractive Tourist Destination $ 882 million TBILISI RESIDENTIAL R.E. ANNUAL MARKET VOLUME 2.2 million INTERNATIONAL TOURISTS IN 2014 5

GEORGIA - KEY FACTS 20 18 70% 18 17 60% 16 16 17 16 16 50% 14 14 13 40% 12 12 30% 11 10 20% 10 10% 8 0% 6-10% 4-20% 2-30% 0-40% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Nominal GDP, US$b GDP growth Georgia GDP growth Russia GDP growth Azerbaijan 112 110 110 109.2 109.2 108 108.5 107.1 106 104 103.1 102 101.7 100 99.1 99.5 98 96 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Sources: World Bank, National Statistics Office of Georgia 6 CPI FACT SHEET Population (2014) Proportion of Urban Population in Total (2014) Nominal GDP (2014) FDI (2007-2014) 3.7 million 57% 16.5 billion USD 9 781 million USD Internet Penetration in Georgia (2013) 43% Tbilisi s Share of Internet Users (2012) 64% Country Rating BB-/stable; Ba3/positive Georgia s economy suffered during civil unrest in the 1990s but since 2000, with the support of the IMF and the World Bank has controlled inflation and increased GDP growth. The Rose Revolution of 2003 brought in significant change during 2003-2007. The number of different types of business taxes reduced from 21 to 7; increase in tax revenues from USD 469 mln to USD 2.2 bln; FDI grew from USD 450 mln in 2005 to USD 2 015 mln in 2007; average GDP growth was around 10% and the level of corruption has decreased due to the legal restrictions and Government anti-corruption actions. GDP growth remained in the 9-12% range in 2005-2007, spurred by gains in the industrial and service sectors. In 2006-2008 Georgia was named the world s top reformer by the World Bank. Georgia achieved robust economic growth between 2003-2012, averaging 6.1% annually following structural reforms that stimulated capital inflows and investment. In the end of June 2014 Georgia and the European Union signed Association Agreement including Deep and Comprehensive Free Trade Area (DCFTA).

GEORGIA - COUNTRY PROFILE Economy Government Georgia achieved robust economic growth between 2003-2014, averaging 6.3% annually, following structural reforms that stimulated capital inflows and investment. The reforms helped to improve the business environment, strengthened public finances, upgraded infrastructure facilities and liberalized trade. Growth was also supported by increased foreign direct investments (FDI) and was driven by capital accumulation and sound use of excess capacity. Georgia is a democratic, semi-presidential republic whereby the President is a Head of the State and the Prime Minister is a Head of the Government. In June 2014 the EU and Georgia signed an unprecedented Association Agreement, which includes a Deep and Comprehensive Free Trade Agreement. Population Value Added Tax - 18% Property Tax - 1% Income Tax - 20% Customs Tax - 0%, 5% or 12% Profit Tax - 15% Tax System Georgia has simplified its processes and has reduced the number of taxes from 21 in 2004 to only 6 today. These improvements have made Georgia one of the most attractive tax regimes globally. Since 2008 Georgia has initiated and concluded Avoidance of Double Taxation Agreements with its major trade partners. Currently Georgia has 46 active agreements. Additional reforms are projected to decrease tax rates even further in the next few years. The Georgian population is approximately 3.7 million people. This figure has grown since 2006 by 2%. About 57% of the total population lives in urban areas and the urbanization rate has been increasing since 2006. Tourism As of 2014 the amount of tourist spending in Georgia amounted 14.6% of the GDP which is 239% increase compared to the 2007 with the CAGR of 27%. Travel & tourism constitutes approximately 58% of Georgia s service export which makes it strategically important for further development of the country. 7

GEORGIA - EASE OF DOING BUSINESS Georgian government efforts to reduce corruption in public and private sectors have significantly improved Georgia s ranking in the World Bank s Doing Business Survey. The expansion of transit potential, financial intermediation, transport and communication infrastructure, hotels and restaurants have contributed to growth in the services industry. At present Georgia enjoys free trade agreement with Turkey and nearly all CIS countries. Georgia is eligible for Most Favored Nation (MFN) treatment from all the WTO member states and is the member of WTO since 2000. The Association Agreement between Georgia and the European Union, signed in June 2014, includes the setting up of a Deep and Comprehensive Free Trade Area (DCFTA). The DCFTA has been enacted since September 2014, therefore products or services produced in Georgia can freely access to the EU market with more than 500 million consumers. World Bank report stated that Georgia is: one of the economies that has done most to narrow the gap with better business regulatory practices since 2009; one of the world's fastest-reforming economies. 8 Ease of Doing Business, 2015 Index of Economic Freedom, 2015 Singapore Denmark United States United Kingdom Germany Georgia Armenia Turkey Russian Federation Kazakhstan Azerbaijan China Ukraine 1 4 7 8 14 15 Rating Among 189 Countries Sources: Global insight, National Statistics Office of Georgia, World Bank, The Heritage Foundation The World Bank's Doing Business Survey places Georgia among the countries showing the most dramatic improvement in the fight against corruption. The implementation of economic and institutional reforms have contributed to this improvement. By the latest survey it stands on 15 th position among 189 countries. Georgia ranks as 1 st in property registration, 3 rd in dealing with construction permits, 5 th in starting a business and 7 th in getting the credit. 45 55 62 77 80 90 96 Hong Kong Denmark United States United Kingdom Germany Georgia Armenia Kazakhstan Turkey Azerbaijan China Russia Ukraine 1 11 12 13 16 22 52 Rating Among 178 Countries According to The Heritage Foundation, Georgia has advanced its score by 2.6 points over the past five years. The country has demonstrated improvements in five of the economic freedoms, including freedom from corruption, the control of government spending, business freedom, monetary freedom, and investment freedom. Achieving its highest score ever in the 2015 Index, Georgia has advanced further into the category of mostly free. 69 70 85 139 143 162

GEORGIA - FOREIGN DIRECT INVESTMENTS Georgia achieved robust economic growth between 2003-2012, averaging 6.1% annually following structural reforms that stimulated capital inflows and investment. The reforms helped improve the business environment, strengthened public finances, upgraded infrastructure facilities and liberalized trade. Growth was also supported by increased foreign direct investments (FDI) and was driven by capital accumulation and sound use of excess capacity rather than by net job creation, with productivity gains concentrated mainly in the non-tradable sectors. GDP per capita increased from USD 920 in 2003 to USD 3 680 in 2014 (in current prices). Foreign Direct Investments (FDI), mln USD 2,500 2,015 2,000 1,758 1,564 1,500 1,190 1,117 912 942 1,000 814 658 500 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 FDI Growth to previous year 100% 80% 60% 40% 20% 0% -20% -40% -60% -80% FDI by Major Investor Countries FDI by Major Economic Sectors FDI by Major Regions 4% 4% 5% 6% 6% 12% 10% 2014 12% 21% 20% Netherlands Azerbaijan China United States Luxembourg United Kingdom Russia Panama Turkey 13% 12% 6% 8% 2014 25% 7% 11% 18% Manufacturing Energy sector Construction Hotels and restaurants Transports and communications Real Estate Financial sector2 9% 5% 6% 4% 2014 76% Tbilisi Adjara Samtskhe-Javakheti Samegrelo-Zemo Svaneti and Guria Others Other coutries Other sectors Sources: Ministry of economy and sustainable development of Georgia, National Statistics Office of Georgia 9

GEORGIA - ATTRACTIVE TOURISM DESTINATION Brief Outlook on Tourism According to World Travel Council, the direct contribution of Travel & Tourism in Georgia to GDP was 5.9% as of the end of 2014. Georgian government tries to develop the sector further, since Georgia possesses attractive tourist destinations. Tourism appears to be profitable business for Georgians, since receipts from international tourists has been growing steadily over the last 9 years. Travel & tourism constitutes approximately 58% of Georgia s service export, which makes it strategically important for further development of the country. Due to the governmental efforts, the competitiveness of Georgian tourism on the world market increased by seven positions, ranking 66th among 140 nations in the Travel & Tourism Competitiveness Index in 2013, as compared with 2011 (73rd position). In addition, according to Rough Guides Georgia ranks 5th among the top ten countries to visit in 2014. International Tourism Receipts 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000-2007 2008 2009 2010 2011 2012 2013 2014 Structure of International Arrivals Receipt, thousand USD Growth of international arrivals % 60% 50% 40% 30% 20% 10% 0% Governmental Support of the Sector The large tourism promotion campaign helped to increase tourist numbers by 38% in 2011. The Government s efforts to promote Georgia as a tourist destination helped to raise number of tourists by 57% and 22% in 2012 and 2013 respectively. As of 2014, the amount of tourist spending in Georgia amounted 14.6% of the GDP, which is 239% increase compared to the 2007, with the CAGR of 27%. 10% 3% 15% 22% 2014 27% 23% Turkey Azerbaijan Armenia Russia Ukraine Other 2009 +266% 2014 Growth in international arrivals 10 Source: Georgian National Tourism Agency, BMI, World Travel Council

3 Section GEORGIA REAL ESTATE INDUSTRY OVERVIEW

RESIDENTIAL MARKET OVERVIEW Factors affecting demand Population Average household size was around 3.6 people which is larger than in comparable countries. The average household in Tbilisi is even higher at 3.7 persons, compared to Europe, where the average household size has steadily decreased and stabilized at around 2.4 persons. Over last 10 years, Georgian population was growing at the average rage of 0.4% despite setbacks in late 2000-es and in 2013. Hence population grew around 4% over the last decade reaching 4.49 mln people in 2014, however the last census conducted in the end of 2014 showed a 20% decrease to 3.7 mln people. Population of Tbilisi is 1.18 million that makes around a 26% of total Georgian population, and this share continue growing as Tbilisi population growth is 0.87% over last 10 years - over 2 times the national average national. This illustrates continuous trend for migration of regional population to the capital. Average Household Size by Country Tbilisi's Population, in Thousands Georgia 3.6 1,173 1,171 1,175 China 3.0 1,152 1,162 Average 2.8 1,137 1,137 Croatia 2.8 Poland 2.8 1,101 Russia 2.7 Hungary 2.6 Latvia 2.4 2007 2008 2009 2010 2011 2012 2013 2014 12 Source: National Statistics Office of Georgia, Eurostat

RESIDENTIAL MARKET OVERVIEW Factors affecting demand Income Average monthly income in Georgia has been steadily increasing at the CAGR of 12.61% over the period of 2004-2013. However, average income remains low as the country is still classified by the World Bank as a lower middle-income country. Recent growth levels are between 14% and 19% annually and the current average monthly income is almost GEL200 double than in 2008. Average income in the Capital Tbilisi far exceeds the regions. During 2013, the volume of issued mortgage loans amounted to USD 416 mln which is the double the level of 2012 and 31% higher than 2011. The largest proportion of mortgages in 2013 was issued in December (around USD 149 mln), due to the marketing campaigns of commercial banks and reduced interest rates. In 2014 the growth rate stands at 30% and issued mortgages amounted to USD 541 mln. Average Monthly Income Per Capita, in GEL 195 179 147 155 103 115 218 246 Mortgage Lending, in mln USD 523 560 416 314 225 208 416 686 541 893 2006 2007 2008 2009 2010 2011 2012 2013 2010 2011 2012 2013 2014 Issued mortgages Total outstanding Currently the average interest rate is 10%, which is still high when compared internationally. It is important to note that with 9.5% rental yield rate, mortgage payments are lower than rental costs with down payment of 30%. Due to naturally high savings rate population deposits grew over X times in 2010-2014 to which compares to X% of GDP. At present population has only two major saving options bank deposits or real estate in Tbilisi. While bank deposits are liquid, real-estate much higher return. Average Rental Yield vs Annual Interest Rate on Long-term Deposit Q3 2014 9.5% Individual Deposits, in Millions GEL 1,154 1,382 7.6% 426 563 755 Average rental yield, USD Source: National Statistics Office of Georgia; National Bank of Georgia Annual interest rate on long-term deposits, USD 2010 2011 2012 2013 2014 13

HOSPITALITY MARKET Main Market Players Supply on Tbilisi Hotel Market 14,000 12,000 10,000 8784 8,000 7574 6189 6,000 4075 3591 4,000 3036 2,000 0 2013 2014 2015 number of rooms number of beds number of accomodation units 160 150 140 130 120 110 100 Tbilisi got significant share of the remarkable growth of international visitors to Georgia (3.5 times over 5 years). The number of visitors grew almost 4 times in 2007-2013. The growing demand for hotels was met with increasing number of hotel rooms and beds. The capacity growth is estimated to be 42% in 2013-2015. The occupancy rate is quite high at 75% with International hotel brands and stays high, while local brands have occupancy around 50%. ADR is highest with International Upscale Brands suggesting demand in this segment of the hoteling market. Occupancy rate in Tbilisi 2014 ADR in Tbilisi 2014 (USD excl. VAT) 80% 74% 75% 250 203 60% 58% 200 42% 150 127 40% 100 80 20% 50 49 0% International Upscale Brands International Midscale Brands Local Upscale and Middle Class Local Budget/ Economy Class 0 International Upscale Brands International Midscale Brands Local Upscale and Middle Class Local Budget/ Economy Class 14 Source: STR GLOBAL, CW VB Hospitality Services

4 Section SILK ROAD GROUP COMPANY BACKGROUND

SILK ROAD GROUP The Silk Road Group is one of the leading private investment groups active on the Caucasus and Central Asian region with participations in different sectors of the Georgian economy, including transportation, trading, real estate, retail, tourism and telecommunication The Silk Road Group was established in Georgia in the early 1990 s following the collapse of the former Soviet Union. Since its inception, the Silk Road Group has enjoyed steady growth by revitalizing traditional trade routes, which had been neglected for decades. SRG s focus on meeting the needs of a multinational client base has allowed it to grow into a global organization. SRG now has client service professionals in Asia, Europe, and North America. The company started activity with transportation and trading of commodities in the Central Asian and Caucasus region. SRG has established itself as a leader in the rail transportation of liquid and dry cargo in the Central Asian and Caucasus region. As structural and tax reforms gained the solid momentum in Georgia in 2004, SRG started to expand its business into various industries, such as Infrastructure, Real Estate, Banking, Trade, Telecommunications and Energy. Jointly with its partners, SRG has facilitated investments of around USD 0.5 billion onto the Georgian economy over the last ten years. 16

5 Section SILK ROAD GROUP ASSETS

ASSET DESCRIPTION RADISSON BLU, BATUMI Situated in a prime city location near Batumi city center and close to the stunning Black Sea with excellent hotel and branding visibility. Traverse the area via convenient transport options, or walk to nearby sights like the bustling Seaside Boulevard. The hotel has 168 guest rooms, varying from 33 Sq.m for standard room size to 86 Sq.m executive room size. The hotel offers extensive dining facilities including Medea Restaurant and Bar on the ground floor and Clouds Restaurant & Bar on 19th floor. The Grand Ballroom comfortably accommodates 350 attendees in theatre-style seating or 150 guests banquet style. The ballroom can also be separated into three smaller sections, offering convenient flexibility. The hotel offers branded Anne Semonin Wellness & Spa Center comprising of 1 650 Sq.m IVERIA CASINO at the RADISSON BLU, BATUMI Located at the lower level of modern Radisson Blu Hotel, with entrances from street and the hotel, a modern, bright and welcoming Iveria Casino operates 74 slot machines, 14 table games and 2 touch bet roulettes. It is the first casino most visitors come to when they approach Batumi seafront from the harbor. Gross Area Function Space Sq.m Hotel Rooms 7 800 Public Areas 3 620 Food and Beverage 1 400 Meeting and Conference Rooms 1 250 Wellness and Pool 1 650 Back of House 5 500 Total Hotel 1 220 Casino 1 580 Total Building 24 020 Total Land Plot 3 300

ASSET DESCRIPTION RADISSON BLU IVERIA HOTEL & CASINO THE MARKET LEADER FOR HOTELS IN TBILISI With an enviable Rustaveli avenue location in the heart of the city, the Radisson Blu Iveria Hotel, Tbilisi affords easy access to everything the capital has to offer. Guests can walk to theatres, museums, Opera House and Concert Hall. A 19-storey hotel building located in the very heart of the capital of Georgia, Tbilisi, on the Rose Revolution Square (Republic Square), in one of the most prestigious and historic districts of the city. The visibility of the hotel is excellent, as the square is located on the hilly part of the capital. It has good accessibility, as nearest metro station is 300m away, Tbilisi International Airport is 17 km (20min) and railway station is 3.3 km (7min) away from the hotel. Radisson Blu Iveria, managed by Carlson Rezidor Group was opened in 2009. Hotel offers in total 249 guest rooms -146 standard rooms, 44 superior, 43 business, 15 junior and 1 suite. All the rooms have panoramic windows that offer beautiful city views of the river Mtkvari and Caucasus mountains. Additional facilities of the hotel include: Anne Semonin Spa & Wellness, casino, bars and restaurants, conference halls (capacity 350 seats theatre style) & ballrooms, indoor and outdoor pools, health club and business center. Restaurants: concept restaurant Filini and Asian restaurant umami; Bars - Oxygen (on 18 th floor) and Surface bar.

6 Section SILK ROAD GROUP DEVELOPMENT PROJECTS

SILK ROAD GROUP PROJECTS IN TBILISI ARE ALL CENTRALLY LOCATED AND CREATE A SYNERGIC LINK Sakanela Radisson Blu Iveria Metro Congress Hall Telegraph Hotel 21

RADISSON BLU TELEGRAPH HOTEL

SILK ROAD GROUP DEVELOPMENT PROJECTS RADISSON BLU TELEGRAPH HOTEL The former post and telegraph headquarters occupies a strategic and prestigious location at the very heart of Tbilisi, in a prime touristic and business center on Rustaveli Avenue. The 8-storey Telegraph Building also has 3 floors allocated to the basement area. The building is to be reconstructed to Radisson Blu Iveria Hotel offering 190 keys. All the technical equipment and installments, water tanks and storages for the hotel, server room and other auxiliary facilities are located in the basement area. A jazz club will also be located in the basement area with direct access from the street. The main component of the project i.e. the lodging facility will have main entrance from Rustaveli Avenue. The lobby will be placed on the 1st floor with restaurant & bar, main kitchen and meeting/conference/banqueting rooms. The second floor will accommodate standard rooms and a gym, as for the 3rd and 4th levels, these will be fully dedicated to standard, business and superior rooms. The business and superior guestrooms will be placed on the 5 th floor. The top level will feature a presidential suite and penthouses. Total GBA 29 253 Sq.m Hotel 17 242 Sq.m Total investment cost in USD 31.3 mln USD Project s implementation period 1 years 23

CONGRESS HALL

SILK ROAD GROUP DEVELOPMENT PROJECTS CONGRESS HALL A four-storey development to be located in the very center of Tbilisi, adjacent to the Radisson Blu Iveria Hotel. The building represents a non-residential complex and will provide world class conference facilities. The congress hall will be linked via an enclosed walkway bridge to the adjacent Radisson Blu Iveria Hotel and Telegraph Hotel, ensuring maximum convenience for guests and conference delegates. The development will have dedicated parking with 150 parking spaces and the main entrance will be located on the ground floor. There will be between eight and twelve meeting rooms with sizes to suit all delegate requirements and there will be a pre-function facility with a floor area of over 2 200 Sq.m. The main ballroom will be 1200 Sq.m with a capacity of over 1000 guests and will feature a floor to ceiling height of 8 metres. The main ballroom will be separable into three equal areas for smaller conferences and the rooms will be accessible from the pre-function facility, the terrace and will be connected to the Telegraph Hotel along the third floor. Total investment cost In USD Around 13 mln USD Project s implementation period 2 Years 25

M E T R O ENTERTAINMENT CENTER

SILK ROAD GROUP DEVELOPMENT PROJECTS - METRO Situated on Rose Revolution Square opposite the Radisson Blu Iveria Hotel and Iveria café, Metro entertainment center represents a four - storey non-residential complex. Façade works of the building are already completed. The center will accommodate several restaurants and conference/banquet halls. A Georgian restaurant will be located on the ground floor with the size of 400 Sq.m. The conference/banquet pre-function space will be 400 Sq.m. The 1st and 2nd floors are allocated to the conference/banquet hall (hosting around 500 persons) with the size of 1 500 Sq.m plus 400 Sq.m of back of house space. There will be a lounge bar and fish restaurant with a size of 500 Sq.m, as well as exterior terraces including podium (approximately 1 000 Sq.m) which will be situated on the 3rd floor of the building. Land 2 247 Sq.m GBA 4 405 Sq.m Total investment cost in USD 8 mln USD Project s implementation period 1 year 27

SAKANELA

SILK ROAD GROUP DEVELOPMENT PROJECTS - SAKANELA A mixed-use project with prevailing residential and office uses, a branded aparthotel development and retail. The total area of the site totals 20 820 Sq.m and the construction area is 18 000 Sq.m. Based on the demand analysis, the project structure is defined: Residential 80 000 Sq.m with approximately 700 apartments; Office 5 000 Sq.m; Retail approximately 1 500 Sq.m; 3-Star Hotel that will comprise 200 keys The site lies on the right embankment of the Mtkvari River, within the territory of Tbilisi, approximately 500 metres from city centre. The site is situated on the parallel street of Rustaveli Ave. the city s touristic and business centre, with most of the hotels and prestigious housing, the land is also linked to the Rose Revolution Square, where SRG s other assets are located. This mixed-use project has good visibility and direct frontage on two streets: Javakhishvili and Sanapiro. The site has generally a rectangular shape, with inflections from the southern and east sides. There is a notable elevation of the site in relation to the road surface along the southern and western borders. This zone is considered as one of the most prestigious in the city and is distinguished by high concentration of administrative, residential properties, hospitality and elite street retail outlets. The location of the site next to Rustaveli Avenue, which is distinctive by highly developed infrastructure and is valued for its compact housing development, makes it even more attractive. Total investment cost in USD - 50 mln USD Project s implementation period - 4 years 29

RADISSON BLU TSINANDALI HOTEL

SILK ROAD GROUP DEVELOPMENT PROJECTS RADISSON BLU TSINANDALI HOTEL As part of the effort to preserve Georgia s cultural heritage and ensure that Tsinandali effectively tells its story to future generations, the Silk Road Group will renovate the property, introducing modern amenities while preserving its most important historical features. Distance from Tbilisi to the House Museum of Alexandre Chavchavadze in Tsinandali is 104 km, which is 1h 50 min driving. The renovation is taking into account all relevant factors, including: The main house, hotel and museum; Landscaped nature trails for walking, jogging and biking trails; Helipad; Winery; New visitor center Local environmental, climate and structural characteristics will be absorbed into the architectural of the finished products; Facilities for conference and banqueting, private dining and special events; An emphasis on eco-tourism Local Georgian constituents will be involved and consulted in all stages of planning, preparation and execution of the Tsinandali development project; Radisson Blu Hotel currently under development consists of a new building on the plot owned by Silk Road Group with provisionally 111 keys, SPA on the top floor and outside swimming pool, an old winery factory on the plot currently leased by SRG connected to the new building via glass covered bridge, which will accommodate hotel restaurant, meeting rooms, bar, library, small cinema, closed and open air ballrooms, courtyard and wine degustation areas. Total construction area is about 18 000 Sq.m. The structural works are completed. Total investment cost in USD 25 mln USD Project s implementation period 2 years 31

TSINANDALI VILLAS

SILK ROAD GROUP DEVELOPMENT PROJECTS TSINANDALI VILLAS Tsinandali is a heartland of Georgia s wine region, located in Kakheti, east Georgia. The new Radisson Wine Resort at Tsinandali bridges the millennia-old tradition of wine making in the Southern Caucasus and current global trends in cultural tourism, creating a unique guest experience. Silk Road Group plans to develop the surrounding area of the Tsinandali Museum. The Group owns 11 ha. land plot adjacent to the House Museum of Alexandre Chavchavadze. The development envisioned includes 20 exclusive luxury villas a dream house for everyone looking for a relaxing environment and the comfort of feeling at home in the cradle of wine. Apart from residences the territory will encompass the spectacular walking trails and landscaped gardens. The complex is surrounded by unique oak woods. The home owners shall enjoy breathtaking views of Caucasus Mountain Range. The residents will be offered the wine, made from local vineyards and exclusively bottled for them. Total investment cost in USD to be confirmed Project s implementation period 4 years 33

BATUMI MESKHETI

SILK ROAD GROUP DEVELOPMENT PROJECTS - MESKHETI Meskheti is a seaside mixed - use development perfectly located in Batumi, in a prominent location with excellent visibility from Rustaveli Avenue and the Seaside Boulevard. Land is surrounded by Hilton Hotel, Nuri Lake, famous Batumi Dolphinarium and the Black Sea beach. The project consists of hotel, residential and retail components. Total land area 9 142 Sq.m 35

RIVIERA BATUMI

SILK ROAD GROUP DEVELOPMENT PROJECTS RIVIERA BATUMI Located in the central part of Batumi center (Rustaveli Avenue), the development will have direct views of Batumi port and the city boulevard where all the main tourist activities are concentrated. This development involves the construction of mixed-use facilities of an integrated resort for retail, high-end residential, hotel and entertainment use; cafes & restaurants of different types of international cuisine. The offering will include marina and yacht clubs, an expo-center and business facilities as an addition to the project. Land 59 043 Sq.m Construction area 240 000 Sq.m Project implementation period - 5 years 37

Development Solutions LLC 49a, Chavchavadze Avenue, 0162 Tel: 995 32 25 35 81/82/82 Fax: 995 32 25 35 84 E-Mail: giorgi.marr@silkroad.ge www.silkroadgroup.net