The Asian Development Bank (ADB) and Optima LLC have joined forces to provide a $10 million loan for the development of affordable and sustainable residential housing in Tbilisi, the capital of Georgia. This loan will finance two residential complexes, which will offer over 3,700 energy-efficient and affordable apartments for low- to middle-income individuals. It marks ADB’s first private sector housing project in the South Caucasus and Central Asia. Optima, a subsidiary of m2 Group and Georgia Real Estate (GRE), one of Georgia’s top real estate companies, will oversee the project.
According to Shantanu Chakraborty, Director of ADB’s Private Sector Operations Department for South Asia, Central Asia, and West Asia, the project aims to modernize affordable housing in Tbilisi by incorporating inclusiveness into the design and adopting gender-responsive and accessibility standards. This initiative showcases how the industry can provide quality and affordable housing for low- to middle-income communities not only in Georgia but also in the entire region.
Shane Rosenthal, ADB’s Country Director for Georgia, believes that the apartments will be well-built, energy-efficient, and affordable, making them suitable for the elderly, people with disabilities, women, and children. This loan is part of ADB’s ongoing commitment to developing livable cities in Georgia.
Currently, more than 80% of Tbilisi’s apartments were built during or before the Soviet era, and they lack recreational areas, parking facilities, and elevators. Moreover, accessibility to public spaces for vulnerable groups is substandard. In 2019, the city government introduced an urban plan to promote sustainable urban development, spatial planning, and inclusive infrastructure. The government has also created gender advisor roles within its urban development and environmental protection departments to ensure gender-sensitive designs for the city’s open spaces.
Nikoloz Medzmariashvili, CEO of m2 Group, expressed his honor in being part of ADB’s first affordable housing development deal in the region. He also mentioned that the loan will provide medium-tenor financing for affordable housing projects in Tbilisi. The design has been enhanced to achieve better results in terms of energy efficiency and accessibility.
GRE, a wholly owned subsidiary of JSC Georgia Capital, which is 100%-owned by Georgia Capital PLC, will oversee the project. Georgia Capital PLC is a listed entity on the London Stock Exchange.
ADB’s goal is to achieve a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while continuing its efforts to eradicate extreme poverty. Established in 1966, ADB is owned by 68 members, with 49 from the region.
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