KYIV. May 22 (Interfax-Ukraine) – Amstar Europe, part of Amstar investment company (Denver, U.S.) is studying the possibility of realizing a project to build a cottage estate with the working title Manor Springs with almost 200 houses on a land parcel of 80 hectares on the Obukhiv highway in Kyiv region if positive changes in the Ukrainian property market are seen, Amstar Europe Vice President Oleksandr Hryban told Interfax-Ukraine at the “Crisis Square
Meter: Concept, Promotion, Sales” conference in Kyiv on Thursday.
“Expenses on engineer preparation and the cost of entering the market were
large: We would reach around $50-60 million in general,” he said when asked about the cost of the realization of the project today.
Hryban said that if investors make a positive decision on the project, the realization of its first phase with around 40 houses could be launched in 2016.
“Now we’re approving the detailed plan of territories, we carried out engineer and design works, maybe we will start engineer preparation of the project to start the realization of the first phase next year if the market changes,” he said.
Hryban said that further investment of Amstar in projects in Ukraine depends on the successful return of investment as part of the Skyline residential complex in Kyiv.
“If we see that we start receiving back money, we will get carte blanch from the investor who will allow us to reinvest these funds,” he said.
The decision of the possible reinvestment by Amstar in new projects in the Ukrainian real estate market could be linked to restrictions on carrying out transactions with foreign currency introduced by the state, he said.
Hryban said that the project foresees the construction of houses with a gross area of 280-430 square meters on land parcels of 0.13-0.15 hectares, and the houses would have approaches to artificial water reservoirs created by reclaiming channels of the old estuary of the Dnipro River.
Today, the acceptable price of one square meter for Amstar if the company launches the project is to be $2,000-2,200, taking into account land parcels, he said.
