CEO Insights Magazine

ACFO plays a pivotal role in ensuring the financial health and strategic direction of a business, right from managing financial risks, optimizing capital structure, and providing insightful analysis for decision-making. By implementing sound financial strategies, the CFO contributes to sustainable growth, profitability, and overall success of the organization. Gocha Khudoian, the distinguished Development Group CFO of Metropol, embodies this vital role with his profound expertise and innovative approach. Early in his career, Gocha mastered the art of financial restructuring, transforming underperforming assets through meticulous analysis and strategic cost management. His tenure at Metropol, beginning in August 2022, has since been marked by enhanced financial discipline, technological innovation, and a commitment to data-driven decision-making. With an extensive background in the construction industry and corporate recovery, Gocha’s leadership continues to drive Metropol’s success. Let’s hear more from him.

Could you share some of the current real estate development activities you are leading within the company?

At Metropol, we are engaged in several dynamic real estate development projects that emphasize our commitment to innovation, sustainability, and strategic growth. Currently, we have five active projects in Tbilisi and Batumi. Metropol Bagebi is under construction and will be completed by the end of 2024. By 2026, Metropol Kavtaradze, the largest in the city, will be finished, featuring a one-hectare recreational area and greenery. These projects cater to both residence and investment. In Batumi, two large-scale investment projects, Metropol Oval and Metropol Cube, will feature a 5-star Royal Tulip hotel in collaboration with the French company Louvre Hotels Group, scheduled for completion in 2027. Additionally, we will soon present a new residential complex, Parallel, offering panoramic views of Batumi’s city center. Metropol will invest over 500 million GEL in an

area covering 516,200 sq. mts. All complexes are planned with a focus on energy efficiency, green architecture, smart home systems, modern building materials, and maximum safety monitoring. Future plans include a housing project in Shindisi, featuring residential houses and necessary infrastructure in an ecologically clean environment. Metropol is pioneering by implementing residential, investment, and suburban projects simultaneously.

What approach do you use to analyze the economics and financial factors impacting today's real estate market?

Analyzing real estate economics and financial factors requires a complex approach that considers both macroeconomic and microeconomic elements. My structured approach includes conducting thorough market analysis and research, developing financial models and forecasts, assessing risks, performing competitive analysis, and considering regulatory and legal implications. Additionally, engaging with stakeholders is crucial to ensure comprehensive insights and informed decision-making.

When facing risks, what strategies do you implement to safeguard the company’s position and reputation in the market?

When encountering risks, it's crucial t o i mplement strategies that mitigate immediate threats while safeguarding the company’s long-term position and reputation in the market. My approach includes risk identification and assessment, financial risk management, operational risk mitigation, reputational risk management, and market and strategic risk management. Engaging and collaborating with stakeholders is also essential. These strategies have helped make Metropol one of the most financially strong developers in the Georgian market, with numerous ongoing and planned projects, some in partnership with foreign brands. This approach ensures resilience against risks and fosters sustainable growth.

How do you guide clients on investment decisions considering market trends and economic conditions?

Guiding clients on investment decisions involves a blend of market analysis, economic forecasting, and personalized advice. By integrating comprehensive market analysis, economic forecasts, personalized strategies, continuous monitoring, transparent communication, and expert insights, clients receive effective guidance. This approach ensures they make informed investment decisions that align with their financial goals and capitalize on market opportunities.

From a financial standpoint, which areas do you plan to focus on for future company investments?

From a financial standpoint, our future investment efforts will concentrate on several critical areas. Initially, a significant portion of our resources will be directed towards embracing cutting-edge technologies and fostering innovation within the company. This entails investments in digital transformation, automation, and advanced data analytics to bolster operational efficiency and enhance the overall customer experience.

Additionally, sustainability initiatives are a key priority, with plans to invest in projects aimed at reducing our environmental footprint. This includes initiatives such as adopting renewable energy, implementing waste reduction programs, and ensuring sustainable sourcing of materials for the sake of sustainable development in Georgia.

Investing in talent development is crucial for our long-term success, and we intend to enhance training programs, leadership development initiatives, and employee welfare schemes to attract and retain top talent. Moreover, research and development will receive significant funding to drive continuous innovation, develop new products and services, and remain ahead of market trends. We also plan to explore strategic partnerships and potential acquisitions that align with our business goals and values to accelerate growth and expand our capabilities. Finally, future investments will support our growth ambitions, including modernizing existing facilities and establishing new ones as required. Through strategic investments in these areas, we aim to drive sustainable growth, enhance our competitive edge, and deliver long-term value to our stakeholders.

Moving forward, what changes or relaxations in reforms and policies do you believe should be implemented to address the pain points in the industry?

As we look toward the future, several key areas need attention to foster growth and efficiency within the industry. Simplifying regulatory frameworks can reduce the burden on companies, allowing them to focus more on innovation and operational efficiency rather than compliance. Harmonizing regulations across different regions can significantly reduce the complexity and costs associated with complying with varied local regulations for multinational companies. Revisiting tax structures to implement more favorable policies could incentivize investment and expansion within the industry. Providing tax credits or grants for research and development can stimulate innovation and technological advancements. promoting public-private partnerships can help pool resources for large-scale projects. Investing in education and training programs to build a skilled workforce, and updating labor laws to reflect the changing nature of work, including remote work and freelance work dynamics, are also crucial for industry advancement.

Gocha Khudoian, Group Chief Financial Officer, Metropol Management

Gocha Khudoian joined Metropol Management one of the most progressive development group in August 2022 as Group Chief Financial Officer. He has extensive executive experience in the construction industry and a background in corporate recovery and lending at Bank Republic. Gocha holds a BBA in Finance and an MBA in Entrepreneurship, and he is fluent in multiple languages.