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Two Sanatoriums of Spa Resort Tskaltubo Sold at Auction

BMG Staff
05.08.22 12:00
Tskaltubo, a spa resort in west-central Georgia is well-known for its radon-carbonate mineral spring waters and elegant Soviet spas and sanatoriums. The resort's focus has been on balneotherapy. Tskaltubo was especially popular in the Soviet era, attracting thousands of visitors during the whole year. Bathhouse 9 features a frieze of Soviet leader Stalin, and visitors can see the private pool where he bathed on his visits. Following Stalin’s museum in Gori, this place is quite popular among foreigners, especially those who are much interested in Soviet history. Tskaltubo’s 22 sanatoriums and bubbling baths were stopped being crowded after the U.S.S.R.’s collapse and were laid empty.

On July 5, the Georgian government presented the investment project New Life of Tskaltubo. As part of the project, on July 6, the government announced state conditional auctions for 14 projects worth 50 million lari in Tskhaltubo. A total of GEL 500 mln of investments is expected in Tskaltubo. In order to turn it into a world-class balneological resort, the state promises to implement the necessary infrastructure projects.

The deadline for the announced auctions for the sale of Tskhaltubo sanatoriums has expired on August 4. As a result, only 2 sanatoriums out of 14 were purchased. The first two purchased sanatoriums are sanatorium Medea and sanatorium Tbilisi.

According to the National Agency of State Property, the Tbilisi sanatorium was purchased by the company Aka for GEL 3.152 million. The company was registered in October 2016. According to the register of enterprises, the owner of 97% of its share is an individual Jamata Charkviani, and the owner and director of 3% is Lavrenty Dzhincharadze.

The new owner of the sanatorium Medea is Asi Group Hotels Georgia which paid GEL 5.830 mln. The company has been registered on 14 December, 2021. 100% shares of the company are owned by Mohamed Abdelmoneb Candilia, Egyptian resident.

The deal for both sanatoriums amounted to GEL 8 982 300.

According to the National Property Agency, the auctions of the remaining sanatoriums have been extended.

Within the project New Life of Tskaltubo, the government of Georgia put up for sale 14 properties - 5 premium class hotels, 5 middle class hotels and 4 accommodation facilities of various types, the total cost of which is about 50 million lari. On its side, the state obliges itself to invest millions of lari and transform Tskaltubo into an international level balneological resort. The project envisages creation of over 3,200 new jobs, more than 6,000 beds, attracting investments in the amount of 500 million lari and significantly increasing the number of visitors.

Busiiness Consultant Mark Haynes Daniell, who attended an event devoted to Tskaltubo development presented by Georgian officials, called Tskaltubo “jewel” of Georgian history and architecture, which “interestingly” connected the past and the future, and said the resort was “a rare opportunity” to invest in the past, which could be an interesting offer in the future, stressing it could achieve success and attract tourists from “all over the world” to enjoy its traditions, cuisine, tourist attractions and projects.