Well House Completes First Energy Efficient Residential Development and Unveils First Hospitality Project
Having successfully completed a modern international-standard residential house, Well House is starting a new construction project in ‘Dream City’, located on 3 University Street. Total investment for the two ‘dream houses’ exceeds $25 million. The Georgian development firm also has plans for the local hotel market. In one year’s time, Well House is to open a high-end boutique hotel on Freedom Square. The investment value for this project is $20 million. Property Georgia spoke to the General Director of Well House, GIORGI GVINADZE, about the company’s current projects and plans for future development.
- Well House – Your Dream House’ – a catchy name with an impressive motto. What are the main factors that determine your project’s status as a dream home?
- Well House began the construction of the ‘Dream House’ in late 2014. Our company, which is implementing new standards of construction on the local market, was established precisely during that year. For our first project, we decided to focus on energy-efficient materials, which is very important for ‘Dream House’ residents. For example, we are using German-made Ytong building blocks, which have seven times less thermal conductivity than ordinary blocks, meaning that residents pay lower utility bills. The building’s doors and windows are also manufactured by a German firm, Rehau, while Caparol ensures that German standards of quality are also present in our paints. For a 17-storey residential complex, a high-quality elevator is a vital factor. In this case, we are offering our clients American quality from Otis. Furthermore, ‘Dream House’ has granite hallways and common areas, as well as a two-storey underground parking lot.
Since Well House is committed to European standards of construction, ecology form another one of the company’s priorities, together with energy-efficiency. The infrastructure of ‘Dream House’ reflects this. The European-standard residential complex has its own comfortable and ecologically clean courtyard. We wish to shatter the stereotype that open spaces require buildings. There is far more recreational space than concrete buildings in Dream City. That is why, to answer your question, the residential complex on 3 University Street is a ‘dream house.’ We are creating green space in Saburtalo.
Our vision is not limited to inner infrastructure. For our residents’ added convenience, we are building a new two-way street which will connect Kavtaradze Street to University Street. To this end, Well House has sacrificed a part of the Dream City area. Road construction works will be carried out by the Tbilisi City Hall.
- As you mentioned, you are using ecologically clean and energy-effective construction materials, which is associated with considerable expenses for a development company. What is the company’s pricing policy like, when it comes to sales?
- Flats in ‘Dream House’ are affordable. Even though we are using expensive materials, we have stuck with the average local market price of $730 to $880 per sq. m. There is a wealth of choice – property sizes start from 42.5 sq. m. At this stage, 100 of the 170 flats have been sold, which is a good figure for a newly finished project. In truth, we are only starting our sales campaign now, but the interest for our ‘Dream House’ has exceeded expectations. We are offering residents flexible payment options. The company has an internal credit facility for 20% to 30% of the total sum, which can be paid in instalments by the end of the year. The residential complex will become operational on 1 June. Only 3 months remain until then, which is a short period of time. That is precisely why we developed this alternative extended payment plan. By the end of the year, clients will either pay the remaining 70% to 80% of the sum themselves, or they will be able to use our partner bank’s credit facility. I would like to add that the first 4 floors of the complex, which are taken up by commercial properties and offices, have been fully sold. Why did you decide to expand into the hotel sector? What exactly does your boutique hotel on Freedom Square entail?
- The hotel project that we are working on is unique in many ways. One of its main attractions is the location. We are renovating an old building on Freedom Square, which will be replaced by a high-end boutique hotel. We are devoting a lot of attention to the interior. The rooms will be furnished by an Italian firm, which is designing the furniture especially for ourselves. The first 4 floors of the 6-storey building will be taken up by hotel rooms (37 to 40 rooms in total), while the top two floors will house a high-end Georgian-European restaurant and a lounge bar with a French café. The hotel will operate under a local brand name. Well House will be operating the hotel itself, and will create 150 new jobs in the process. In spite of the prime location and premier status, we will be offering rates that are affordable both for local and international guests. As for the hotel name, we are currently working on it, and will make a decision very soon.
- What do ‘European standards’ mean for Well House, and for the construction and development market in general?
- Implementing European standards in the construction sector is beneficial both for the developer and the customer. Better safety measures and stricter quality control will lead to a better development for the sector as a whole. Quality means trust, which in turn leads to success. When we decided to enter the construction business in 2014, we chose the same direction as the country as a whole – the European choice. Thus, we got a head start in terms of immediately implementing regulations that will soon become mandatory for everyone involved in the construction business, as part of the Association Agreement with the EU. Well House is a company that was established with 100% local investment, but is successfully meeting all international standards of quality.