Kostava Towers, a company affiliated with Wissol Group, has acquired the former Tbilisi Children’s Infectious Diseases Hospital located at 14 Chikovani Street for GEL 28.2 million, following a repeated public auction held on December 17.
The property, covering 16,837 square meters and including the hospital buildings, was sold by the National Agency for State Property after an earlier auction failed to attract buyers. The initial auction, announced in November, set a starting price of GEL 40.7 million but after no bids were received, the property was reoffered in December at a reduced starting price of GEL 28.2 million. The eAuction system stated that only one bidder participated, with Kostava Towers securing the site with a single bid of GEL 28.21 million or approximately USD 621 per square meter.
Kostava Towers was established in 2022 and is headed by Vasil Pkhakadze. The company is wholly owned by LLC Vellagio, which in turn is controlled by Malta-registered Global Investors Limited, founded by businessmen Soso and Levan Pkhakadze.
The newly acquired site is situated near Heroes Square and adjacent to the former Public Broadcasting building, within a designated cultural heritage protection zone. As a result, any future development must comply with strict preservation and regulatory requirements.
Under the auction conditions, the buyer is required to make an initial payment within one month and must allow Tbilisi Children’s Infectious Clinical Hospital LLC to continue operating on the premises free of charge for five years following the signing of the purchase agreement.
The sale comes amid uncertainty surrounding the hospital’s relocation. Earlier this year, the Ministry of Health announced a GEL 40 million tender to move the facility to the Republican Hospital grounds but the tender was canceled on June 4, 2025. Consequently, the hospital continues to function at its current location.
Kostava Towers already owns a major adjacent asset in the area, a 33,000-square-meter plot on Kostava Street, formerly the headquarters of the Public Broadcasting Company which it acquired at a public auction in 2022 for GEL 65 million.
