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Abkhaz Capital


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Abkhaz Capital is being formed at the invitation of the Republic of Abkhazia to assist in the privatization and development of the country's prime real estate and businesses. Abkhazia is a vacation paradise for Russians and sits just across the border from Sochi, Russia, the site of the 2014 Winter Olympics.

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Abkhaz Capital

  1. 1. Abkhaz Capital Privatizing State-Owned Property
  2. 2. Abkhazia- The Pearl of the Black Sea
  3. 3. Abkhazia sits at the southeast corner of the Black Sea. Sochi, Russia, the site of the 2014 Winter Olympics is just across the border. Average year around temp. 68 degrees. It remains largely undeveloped despite its close proximity to the huge development occurring on the Russian Black Sea coastline.
  4. 4. Abkhazia Capital Mission • Abkhazia Capital is being formed at the invitation of the Republic of Abkhazia to assist in the privatization and development of key state-owned hotels, resorts, properties and businesses. Abkhazia has not yet privatized its most valuable assets.
  5. 5. Republic of Abkhazia
  6. 6. • Abkhazia sits about 15 miles from the city center of Sochi, Russia, site of the 2014 Winter Olympics • Subtropical beach paradise for Russians. Mountains to 14,000 ft. • Huge investment needs from years of isolation • Russia protecting Abkhazia militarily • Over 100% increase in tourism in 2009 to more than 2.5 million • Abkhazia seeking non-Russian investment
  7. 7. • Bruce Talley personally knows both the President and Prime Minister • Written government invitation to structure deals for developing state-owned projects • 160 state-owned projects including hotels, beach resorts, ports, ski areas • Land in Sochi $3 to $10 million per acre. Apartments in Sochi $1 million. Costs of privatizing in Abkhazia a tiny fraction- but only 15 miles away • Tax incentives
  8. 8. Bruce Talley • Successful 20 year history in American bond market • Conversational Russia skills • Opened 5 Russian companies. Bought and sold land. Privatized land in Russia, extensive experience in development/permitting • Contacts at highest level of Abkhaz government. • My position is absolutely unique in Abkhazia
  9. 9. Transport • Rail lines rebuilt by Russian firm • Cargo hauled by rail to Russia for construction • Passenger rail service began summer 2010 from Russia • Airport in Sukhum due to open for flights from Russia • Currently tourists traveling to Sochi airport or by bus, car or train to the border
  10. 10. The Republic of Abkhazia has about $10 billion in financing needs due to the conflict in 1992-93, the lack of investment due to isolation and recent return of mass tourism • Infrastructure • Hotels and resorts to replace aged Soviet structures and modest guest homes • Port in Sukhum, the capital • State-owned businesses • Ski resort • Apartment buildings • Office buildings
  11. 11. Abkhaz Capital • The Republic of Abkhazia has invited Bruce Talley to form Abkhaz Capital to meet financing needs • The government has pledged to provide all information available and to support Abkhaz Capital • A liaison officer has been appointed by the government to assist Abkhaz Capital • Abkhaz Capital will assemble information, 3rd party reports, structure deal proposals, write them up and offer to outside investors • After the deal proposals are completed the government has agreed to pay fees whether they or Abkhaz Capital brings investors
  12. 12. Sales/Marketing • Abkhazia is one of few remaining post-Soviet economies to privatize. To some degree investors are aware of this • B. Talley receiving significant international press attention • B. Talley administrates social media for the Republic of Abkhazia • Develop an investor forum similar to that of Sochi in Abkhazia • Present deals to institutional investors through network of colleagues, personal contact with development groups, private real estate funds and other institutional investors
  13. 13. Competition • There is currently no other outside firm seeking to capitalize on the tremendous opportunities t • Russian investors are there, but Abkhaz authorities desire outside investors to demonstrate independence and build political/ economic ties
  14. 14. Milestones • 3rd- 4th quarter 2010 - Capital raise • Open US LLC, Russian LLC and Bank account • Open Abkhaz Capital firm in Abkhazia • 4th quarter 2010 Open office and isolate first 3 -4 projects • 3rd party reports on Pitsunda Resort • 3rd quarter show Pitsunda and other projects to known “deep pocket” investor
  15. 15. Milestones ctd. • 1st quarter 2011 Plan Investor Forum for summer- fall 2011 • 1st quarter 2011 Complete deal proposals on Pitsunda Resort, Sukhum apartment project and port redevelopment • 1st quarter- 2nd quarter 2011 Present Pitsunda and other completed deals to investors • Close Pitsunda Resort early 2011 • Investor Forum in Sukhum -3rd quarter 2011
  16. 16. Conclusion • Abkhazia represents one of the last opportunities to get involved on the ground floor in the privatization of state-owned property. Abkhazia is also the most attractive place physically in the Black Sea Region. Abkhazia is set to experience the kind of development that Croatia and Montenegro are going through now....
  17. 17. Bruce Talley 1 858 344 9165 (USA) 7 962 859 1776 (Russia)