Georgia Capital (LSE:CGEO) agreed to sell its housing development business, m2, one of the leading residential real estate developers in Georgia, to local investors as part of a shift towards a capital-light investment approach.
The company said the disposal advances GCAP's strategic priority of divesting businesses in the other portfolio companies portfolio and has an immaterial positive impact on its reported NAV as of 31 March.
GCAP will lower its liquidity buffer target to US$25m following the transaction, which improves the pro-forma 31 March NCC ratio by 0.8 percentage points to 3.1%.
Proceeds from the sale will be used to repay the outstanding US$25m bond relating to the housing business on or before its maturity date in August 2026.
"Over the last decade the business has established itself as one of the leading residential real estate platforms in Georgia," said Irakli Gilauri, Chairman and Chief Executive.
