Dreamland Oasis, a real estate Project In Georgia

Another investment business opportunity supported by the Georgian government is Dreamland Oasis which is considered in the real estate and hospitality sector. As we said in the previous articles, the Georgian government has a strong investment offer for investors, it has a liberal and free-market-oriented economic policy, access to a 2.3 billion consumer market through its solid FTA network including both EU and China, educated, skilled, and competitively priced workforce, 6 types of low and flat taxes, significantly decreased the number of licenses and permissions, well developed, integrated and multimodal transport infrastructure.

Dreamland Oasis, a real estate Project In Georgia

Dreamland Oasis is the real estate mixed-use project that includes development of several hotels, apartments, yacht club, thermo-treatment waterpark and various sport and entertainment facilities.
The project is situated at Chakvi seaside area near Batumi city. The hotel component consists of nine 3-4 star hotels with 296 rooms in total, 4-5 star hotel with 180 rooms, 5 star hotel with 223 rooms, and another 5 star hotel with 560 rooms. The number of apartments amounts to 700 units.

Dreamland Oasis project description

Total cost of the project is USD 121.5 million. Soft costs such as master planning, designing and partially construction are planned in 2020.

The project includes two stages;

• first stage involves the construction of all the facilities of the project except 5 star hotel with 560 rooms. Operating income is planned by summer 2023.
• The second stage of the project is the construction of a 560-room hotel with the funds generated from the business.

According to the project, the construction, second phase will start in 2023 and will receive first operating income by season 2025. All units provided for the first stage of the project will reach maximum planned annual revenue by 2028, which is the 6th season of operating activity and the 9th season from the beginning of investment. This scenario considers quick return on investment by selling all of the units.

Financial Highlights:
Total cost of the project: $121.5 million
Total operation profit and income from property sales: $223.2 million
Net cash flow after 10 years: $101.6 million
NPV DR: 12%
IRR: 14.27%
PBP: 10 years

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