“Architect” (just the title Vakhtang Rcheulishvili gave his wife) and  “well known air vendor” Maya Rcheulishvili changed her post in design business after 10 years working in construction sector. Before changing her profile, she managed to build up the biggest financial pyramid of Georgian construction market. When it became impossible to manage a large scale financial pyramid, the family dynasty of the Rcheulishvilis passed all actives and passives of the “Centrpoint” with “Hotels Network Rcheuli” on investment and development company that had been newly established during the three years management and as a result  thousands of customers faced new problems.  

Vakhtang Rcheulishvili said sincerely in one of his paper interviews: in our country air selling has always been in fashion. We are prominent air sellers. The principle of air selling is to sell the flats  of the house that has  not been built yet. That is why they say the air is sold. This is true, but our principle was not to take loan interest from the bank”.  

The Rcheulishvilis have made a fortune by taking noninterest loan from the population since long. But they granted the part of the money to the election fund of “National Movement” and in return they gained benevolence of the authority.  

Apart from air selling the “Centrpoint” used the pyramid scheme too: the company used to set up a small scale cooperative society, that undertook to implement a  specific project. Under the agreement, the client who was a member of the cooperative society had to pay  relevant money for living space  into  cooperative account. The cooperative society’s responsibility was to build and give him/her the living space provided according to the agreement.          

The cooperative society that was charged by any employees of the “Centrpoint” made arbitrary allocation of the costs envisaged for the concrete project: the money that belonged  to  the cooperative society was often spent on launching and implementing the other  project. All newly established  cooperative societies  worked according to the same scheme.   

The crisis for “well known air sellers” began in 2008. When the resource of air selling expired, the company which had a 35 % share of construction market, ceased carrying out 25 projects. At the present point in time, 10 thousand people expect their flats to be ready to live. Among them 6’200 clients paid  the total sum for flat purchase ( the “Centrpoint” does not reveal amount of debts to them), but 2’700 “persistent defaulters” ran into debts to the company for  49 million US dollars. The company itself is in debt to TBC Bank  for 5 million US dollars.  

The “Centrpoint” has been trying to overcome the crisis by means of lots of methods. In spite of a great attempt, the company could not win on any stage of the project “Old Tbilisi New Life”-none of Georgian banks reposed trust in it. The method of barter exchange did not realize hopes either – Maya Rcheulishvili settled in  Batumi,  who was disturbed by debtors and she offered construction material producers the living space of the  built house instead of materials.

The selling method of apartments of persistent defaulters the “Centrpoint” did not help either: The company sold only 20 flats in 2010 January, March auction and gained 230 thousand US dollars by that way ( in spite of the fact that flats were sold by  less 40 % price  than the market price by auction. The statement  made by Vakhtang Rcheulishvili on July 2010 about drawing 15 million US dollar financial resource from Jewish bank by the “Centrpoint” and about renewal of halted construction from October   was not realized either.

A new way out of the “Centrpoint” is “Dexus”, - investment/development company, which was set up some days earlier before concluding the agreement with the “Centrpoint”.

The founders and professional team of “Dexus” are Giorgi Kananashvili, Irakli Kilauridze and Ivane Tsaguria who became entities of the “Centrpoint”. Before now they worked in “Redix”, GRDC and “Bank Republic”. They have no experience in working in “Dexus’ construction sector.  

They say in the company that necessary basic capital   for renewing the works has already been gained for now and they will fulfill  all undertaken  responsibilities for the next three years: they will terminate the stopped construction too and pay off creditors of “Centrpointinvest”.

New Game

“Dexus” takes responsibility  to meet   all current obligations during the three upcoming years. Though, thousands of people were indignant about  introducing the issue of 18% VAT together with detailed terms, conditions and scheme of remained money payment of project termination in new agreements. 

“As it seems, they are going to finish construction works by means of peoples’ money again and they do not know what to think  up. This is an ordinary additional price and not VAT.  They thought up to call it  VAT and increase of 18% excise price for the purpose of making people  confused. It’s nothing to do with the “bill passed in the last period”. The law has  no counter action force and the “bill passed in the last period” is not spread on the agreements concluded in 2006-2007. In fact, we waste money in the air and now they also want to extort money again from us in order to correct their mistakes. It is terrible, such people must be imprisoned’, - says Nino Saatashvili.  

Lots of clients do not believe in entering a new company into the “Centrpoint” management. 

“When we learned that a new company entered the “Centrpoint” management, we addressed them too. We were told to visit them after October 15. They have been hiding from us since then. Do you think “Centrpoint” is really  managed by the  new company? All employees including security staff and secretary  are former ones. The only new person is Mr. Kananashvili. One need  not take a great guess and examine that the above mentioned person  is of no value there and nobody asks him anything. The man has no private parking lot. Mr. Kananashvili is a “new lightning conductor”  of the “Centrpoint” – says an old client of the “Centrpoint” – Badri Manjavidze.

There are such people who  believe neither in  the “Centrpoint” nor in his legal successor “Dexus” and they demand returning the money paid by them: 

The family of Maya Sadgobelashvili bought 42 square meter flat in the building house located on Jikia  Str. In which she must have paid 25’000 US dollars. They paid 20’000 in a year, but when they saw that the house was no under construction, they did not pay 5’000 US dollars on purpose.   

The “Centrpoint” has breached all items of the agreement while we did not break  any obligation rules. We sued  the company for it. The “Centrpoint” admits  having the debts to us but due to  not appearing  before the court, it suspends the case. Now the works have been ceased owing to “Dexus”. We do not intend to wait for it for the next three years. We do not expect finishing the house construction any more, we claim giving back the paid sum”, - says Maya Sadgobelashvili. 

The new legal successor of the “Centrpoint”  does not intent to return the sum paid by the client. As it seems, the condition of real estate market will more deteriorate  in the nearest future. The clients of the “Centrpoint”  hold permanent protest meetings against the manager company “Dexus”. They make  protest on breach of items envisaged by the contract and on changing contractual agreements made by the “Centrpoint”.