Japanese corporation Sumitomo will acquire a 51% stake in Spectr-Agro LLC (Kyiv region), a supplier of mineral fertilizers, seeds and equipment to Ukrainian agricultural enterprises. A corresponding agreement was signed between the corporation, Spectr-Agro and Spectr-Agrotechnika LLC on July 11, the Ukrainian company said on Facebook.
“Over 30 years ago, Sumitomo founded the agri-scientific business line (ASBL), starting with the export of plant protection products from Japan, Sumitomo is actively engaged in expanding the supply chain, constantly developing wholesale and retail distribution channels. Today, this activity is carried out in 30 countries around the world. The acquisition of Spectr-Agro is a continuation of the development of Sumitomo’s business in trading in agricultural resources,” the report said.
Spectr-Agro is expected that the acquisition transaction will contribute to the expansion and growth of the company’s activities in Ukraine.
Spectr-Agro was founded in 2009, currently it operates throughout Ukraine. It supplies such agricultural resources as plant protection products, mineral fertilizers, seeds and agricultural equipment to more than 3,500 agricultural producers in the country.
As of October 2017, the company was co-owned by Vasyl Skarlat with a 50% stake, Maria Lavreniuk with 25%, and Volodymyr Lobach with 25%.
In the third quarter of 2017, the company posted UAH 28.205 million in net profit, its revenue was UAH 2.999 billion.
PJSC Agrarian Fund sold 700 tonnes of grain, 34,200 tonnes of flour and 103,000 tonnes of mineral fertilizers in April-June 2018, the Ministry of Agrarian Policy and Food reported on the website. In the second quarter of this year, the Agrarian Fund’s revenue amounted to UAH 1 billion, the company’s net profit after the payment of corporate profit tax was UAH 2.2 million against an expected loss of UAH 28 million, it said.
The ministry says that flour was sold by the Agrarian Fund in wholesale and retail batches, including in retail outlets under its own brand.
Dragon Capital Investments Limited, a member of the Dragon Capital group of companies, has acquired Eco Tower, a 17,000 sq m business centre in the city of Zaporizhia.
The company acquired the business centre from Conwert Group (Austria), the buyer said in a statement on its website.
The deal value is not disclosed.
“I am very pleased to mark our first real estate acquisition in eastern Ukraine. This investment illustrates our confidence in the stability and business potential not only of Kyiv and Kyiv region, but also of key economic regional hubs of the country, of which one is Zaporizhia,” CEO of Dragon Capital Tomas Fiala has said.
Eco Tower is the largest Class A business centre built in 2011. Its building has 19 floors and two levels of underground parking for 92 cars. It is located at 160 Soborny Avenue in the centre of the city.
Only innovative entrepreneurs can buy apartments in UNIT.City Innovation Park. Vasyl Khmelnytsky, an entrepreneur and founder of UNIT.City, made this statement in an interview for AIN. “We have already built and sold about three million square meters and know this market well. We want to turn the idea into reality: to sell apartments only to people who promote innovations. When they go out for a walk here in the evening, they will start discussing something and can come up with a brilliant idea together. We see a blue ocean in it: we create the enabling environment where a success case can meet another success case, resulting in something greater. This is an experiment,” the businessman underlined.
He said he realized that such approach would put some restrictions on the company and narrow down a range of potential buyers. However, it is essential for him to make UNIT.City a home for visionaries, not for officials or people who deal with trade or cash-out transactions.
Vasyl Khmelnytsky placed emphasis that UNIT.City meant not simply buildings, but a big infrastructure facility focused on innovations and education.
When asked if people who deal with IT innovations and earn €20,000-40,000 a year can afford housing in UNIT.City, Mr Khmelnytsky said that it would be quite possible. With $1,500 per square meter, a 50 sq m apartment would cost $75,000. With a four-year installment plan offered by the businessman, it would cost about $20,000 a year.
According to Vasyl Khmelnytsky, UNIT.City is a long-term project where one can expect return on investment in several years only. Therefore, it is hard to go without international partners. To this end, the company has initially focused on global standards in construction technologies and transparency in financing.
The businessman pointed out that he planned to extend these practices to other regions of Ukraine. The company has already started building UNIT.City in Lviv and plans to do so in Kharkiv. Vasyl Khmelnytsky said $50 million has been invested in the project up to date. According to his estimates, total investment will amount to $700-800 million to be partly financed with office rental income and sales of apartments.
Vasyl Khmelnytsky said he had a strategy to develop UNIT.City. The park is expected to be completed in 2025. However, much depends on the demand for buildings and on the political environment, he said.
“UNIT.City is now completing two buildings, with 75% of each being already commissioned. This is an excellent performance for the local market, as it is typical for Ukraine to commission buildings for two years. Now we have a request for several new buildings at once, so a couple of construction projects are underway simultaneously. However, tomorrow something can happen, for example, the political situation will change in the country, bringing our entire strategy down. Our further actions may change. Therefore, I do not make any fixed plans. The company has the opportunity to build residential facilities here for two years or for five years — everything will depend on the demand,” Mr Khmelnytsky said, describing the project in a nutshell.
ING Bank N.V. (ING), as a mandated lead arranger and bookrunner, a syndicate of European commercial banks, and the European Bank for Reconstruction and Development (EBRD) have signed an agreement on providing a $80 million syndicated term loan for Mykolaiv-based Nibulon. The assets will be used to finance the company’s working capital needs associated with purchase of commodities in Ukraine and exports to the global market, according to a reports on the company’s website.
The loan tenor is three years.
Nibulon was established in 1991. It is one of the largest operators in the grain market of the country. It has elevators with a total capacity of about 2 million tonnes, as well as its own transshipment terminal with a capacity of 5 million tonnes in Mykolaiv. The company has 11 river terminals on the Dnipro and the Southern Buh, its fleet consists of 67 vessels. Nibulon cultivates 83,000 hectares of farmland. It exports farm produce more than 60 countries. The annual volume of exports exceeds 4.5 million tonnes.
Ukraine should create equal opportunities and access to education for young talents whatever income they can have. Vasyl Khmelnytsky, an entrepreneur and owner of UFuture Investment Group, made this statement in an interview for AIN. According to Mr Khmelnytsky, he is now bringing the most advanced and innovative educational institutions into UNIT.City Innovation Park he created.
“We want to invite as many quality educational institutions as possible here and are ready to offer them favorable conditions. For example, now we are in talks with a school of English from the West. I will lease premises to them at cost price in an effort to bring them in our initiative. After all, it is difficult to become successful today without a good command of English. If you have a good educational project, come to us, we will offer you good conditions,” said Vasyl Khmelnytsky.
He mentioned DTEK Academy as an example, saying that they had a strong methodological basis and expertise. In future, Vasyl Khmelnytsky expects the UNIT Factory educational initiative to expand to have up to 2,500 students.
The entrepreneur is set to build something like a student dormitory in UNIT.City in a move to create comfortable conditions for all students, regardless of the wealth of their families: for young people from small towns who cannot afford to rent expensive housing in the capital city. Those who will not have money even to pay for the dormitory will be able to enjoy a credit line with a very low interest rate of 5%.
At the same time, Vasyl Khmelnytsky reminded that the school would be tuition-free.
Commonly, talented people do not have enough money. Vasyl Khmelnytsky believes that if the tuition is high, the children of rich parents will come to school, without any motivation and ambitions. “If we offer equal conditions for all, we will bring real talents in UNIT.City. These very children will later join businesses based in UNIT.City. Here we have the following business model: the costs do not scare me so much, because I understand the future income from the entire system. This is a long game, and the return will not come immediately, but in a few years,” Vasyl Khmelnytsky underscored.
According to the businessman, students having a strong academic performance will have high chances to find a job in companies based in UNIT.City. However, no one will force them to work for one or another company. Mr Khmelnytsky said they would be able to choose either to work for a UNIT.City resident company or land a job outside the park.
Vasyl Khmelnytsky emphasized the role of the educational environment in UNIT.City, saying it creates added value. “People sometimes tell me that it is a little expensive here. Indeed, somewhere you can find a price, which is lower by $2 per sq m, but here we have students, schools, universities, other companies, educational programs, accelerators, laboratories, security and so on. If you find no point in this, there is no reason to spend $2 more in this case. However, the bonuses offered by UNIT.City will help you become better, that is why the price is higher,” he said, summing up the project.
