Bankrupt investor linked to $70 million Cascade redevelopment in Yerevan

By Elen Muradyan

One of the investors behind a planned $70 million redevelopment of Yerevan’s Cascade complex was declared bankrupt by an Armenian court in 2020, according to an investigative report published today by Radio Free Europe/Radio Liberty’s Armenian service.

The investigation was conducted by RFE/RL Armenian Service journalist Mkrtich Karapetyan.

The project, approved by the Armenian government and implemented by Yerevan’s city administration, concerns the upper section of the Cascade, a central landmark and one of the capital’s most valuable public spaces. The redevelopment is being carried out by a consortium led by GTB Development, owned by businessman Grigor Ter-Ghazaryan .

Court records cited in the report show that Ter-Ghazaryan was declared bankrupt after failing to meet loan obligations to Ardshinbank. His debts dated back more than a decade and included unpaid bank loans, tax-related liabilities to the Yerevan municipality, and smaller claims from private companies. The bankruptcy case was later closed after administrators reported that no movable or immovable assets were registered in his name at the time.

Despite that ruling, GTB Development won the tender for the Cascade redevelopment. Under the agreement, around seven hectares of land are to be transferred to the developer for about 10.5 billion drams (roughly $27 million), while the consortium has committed to invest more than 20 billion drams in construction and development. The overall value of the project has been estimated at $70 million. The developer has also pledged to build a concert hall and a museum, which would later be transferred to the city.

Tender conditions required bidders to demonstrate significant construction experience and a high turnover in recent years. The RFE/RL investigation notes that part of the consortium consists of newly registered Armenian companies, alongside two U.S.-registered firms linked to Ter-Ghazaryan’s foreign business partners.

Yerevan city officials told RFE/RL that financial checks on the investor group were carried out by banks, which provided letters confirming their readiness to finance the project. The municipality said it would not act as a guarantor for any loans and that financing risks lie with the private investors.

The deal has drawn additional attention because of political connections surrounding the developer. Ter-Ghazaryan is related by marriage to the family of Aram Sargsyan, head of the Republic Party, which cooperates with the ruling Civil Contract party in Yerevan’s city council. While Sargsyan has no formal role in the Cascade project, the relationship has fueled public debate in Armenia over political proximity and access to major urban development contracts.

That debate has been amplified by earlier reporting from CivilNet on economic decisions affecting the construction sector, including changes to cement import tariffs that benefited a company owned by Sargsyan’s son. In that case, officials denied any preferential treatment, saying the measures were aimed at regulating the market and supporting local production .

Ter-Ghazaryan told RFE/RL that his bankruptcy case had been legally closed and that there were no restrictions preventing him from engaging in business or investment activities. He said funding for the Cascade project would be raised through a combination of loans, consortium resources and the sale of commercial property built on the site.

The Cascade redevelopment remains one of the most ambitious private-led projects in Yerevan, placing renewed focus on how major public assets are transferred to private developers and what level of due diligence is applied in high-value urban projects involving politically connected figures.