Georgia Capital offloads housing development business

(Sharecast News) - London-listed investment firm Georgia Capital has sold its housing development business, m2, for an undisclosed sum, which it says will improve its net capital commitment ratio. The firm, which buys and develops business across Georgia, said it sold the residential real estate developer to local investors, in line with its capital-light investment strategy.

The sale "represents further progress towards the company's strategic priority of divesting businesses in the other portfolio companies portfolio", it said.

While having an "immaterial" positive impact on net asset value, the transaction will reduce GCAP's risk profile, meaning the company can reduce it liquidity buffer target to $25m.

"This translates into a 0.8 percentage point improvement in the pro-forma 31 March 2026 NCC ratio, bringing it to 3.1%," GCAP said.

Commenting on the transaction, GCAP chair and chief executive Irakli Gilauri said: "Georgia's continued economic growth is increasingly supporting the emergence of meaningful local pools of capital, and I am particularly pleased to see the growing participation from domestic investors in corporate transactions, in addition to ongoing international interest."

GCAP shares were down 1% at 3,955p by 1608 BST.