Business news from Ukraine

Business news from Ukraine

PrivatBank has reduced starting price of Priozerny shopping center to UAH 289.3 mln and put it up for auction

For the fifth time, PrivatBank has put up for auction on the Openmarket electronic platform (SE SETAM of the Ministry of Justice of Ukraine) the shopping center “Pryozernyi” in Dnipro, reducing the starting price to UAH 289.3 million (including VAT).

According to the press service of PrivatBank, the lot includes a six-storey shopping center with an area of 32.4 thousand square meters. The facility’s infrastructure also includes an underground parking lot with an equipped shelter.

According to the announcement, the lot also includes 12 land plots. The winning bidder is also obliged to purchase fixed assets worth UAH 2.2 million.

Built in 2009, the Priozerny shopping center is located in the city center near the Central Market and the railway station. The facility includes shopping galleries, office and warehouse space, entertainment and sports areas. The shopping center’s infrastructure includes an underground parking lot for 100 cars and a surface parking lot for 40 cars.

The auction is scheduled for December 20. The guarantee deposit is UAH 14.4 million.

The starting price of the property at the first auction was UAH 430 million.

As reported, in April 2024, the Supreme Court finally confirmed PrivatBank’s ownership of the Priozerny shopping center, upholding the decisions of the courts of first and appellate instances on the legality of the acquisition of ownership of the facility and dismissing the cassation appeal of Mission-1, which the bank associates with its former owners.

Earlier in 2016, PrivatBank acquired ownership of the shopping center as a loan repayment, at which time its value was over UAH 778 million.

Then, in 2021, the former owner of Priozerny, Mission-1 LLC, filed a lawsuit to challenge the state bank’s ownership of the shopping center and return it to its ownership.

The Commercial Court of Dnipropetrovs’k region dismissed the company’s claim, and later, PrivatBank defended the legitimacy of its ownership of the Priozerny shopping center in the Central Economic Court of Appeal (Dnipro).

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“Guaranteed Buyer” announces first auction for allocation of 11 MW for SPPs

The State Enterprise Guaranteed Buyer (Guaranteed Buyer) has announced the first auction in Ukraine for the distribution of the green generation support quota.
According to the state enterprise, 11 MW of solar power generation capacity is up for auction, with a starting price of 9 euro cents/kWh.
Applications are accepted until October 30.
The auction itself will be held on October 31 at 12:55 in the state electronic trading system Prozorro.Sale.
The auction will be held with a decreasing price.
According to the auction requirements, the solar power plant must be located on the left bank of the Dnipro River, except for the areas of military operations.
To participate in the auction, a bank guarantee in favor of Guaranteed Buyer in the amount of EUR 5/kW of the power plant’s capacity or its queue must be provided. To sign the contract, the winner of the auction must provide Guaranteed Buyer with a bank guarantee in the amount of EUR 15/kW of capacity, under which the winner is entitled to support based on the results of the auction. The remuneration of the operator of the authorized electronic platform is EUR 0.8/kW.
“The government has created all the conditions for holding the most transparent auctions for the distribution of state support for renewable energy producers. This is another step towards European integration and the implementation of best practices in supporting green energy in Ukraine,” Energy Minister Herman Halushchenko commented on the auction announcement, as quoted in the ministry’s website on Friday.
As reported, the Cabinet of Ministers, by its resolution of August 13, set an additional quota for support for business entities that produce electricity from alternative energy sources in the amount of 110 MW for 2024, of which wind farms – 88 MW, and solar power plants and other types of renewable energy sources (biomass, biogas, small hydropower plants) – 11 MW each.
The SPPs must be located on the left bank of the Dnipro River, and the auction for them will be held in October; there are no territorial restrictions for wind farms and other types, and the auctions are scheduled for November.
The contract with the State Enterprise Guaranteed Buyer for the provision of services under the market premium mechanism with the winner of the auction will be valid for 12 years.
For solar and wind power plants, the maximum selling price for electricity is 9 euro cents/kWh. For other types of alternative energy sources – 12 euro cents/kWh.

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Derzhgeonadra auction: amber plot sold for UAH 91 million

The consulting company of the Chairman of the Board of the Amber Business Association of Ukraine won

On Friday, 16.08.2024, an online auction was held for the sale of a special permit for the amber-bearing Polyana field (geological exploration with pilot industrial development and further extraction, for 5 years) with an area of 44.63 hectares in Rivne region.

The bidding started at UAH 4,641,520. Three bidders competed for the lot, with the final bids as follows:

  • Amber Trade 24 LLC of Vadym Kyrylchuk – UAH 30,000,100;
  • Com Resource LLC (the initiator of the auction) of Sergiy Antonov, Mykhailo Kryshchenko, Andriy Vertyporokh – UAH 90,000,000;
  • Mykola Kotnyuk’s Consulting Company Profzeminvest LLC – UAH 91,000,000 (winner).

Mykola Kotniuk is the head of the Amber Business Association of Ukraine, which unites 24 participants in the amber industry.

Is the Polyana site worth the UAH 91 million investment in a 5-year special permit? NADRA.INFO asked the winner of the auction.

“Our specialists will conduct a survey of the site, analyze the available geological information, and obtain the conclusions of the legal department on the possibility of obtaining a temporary land plot. After that, the investors will make the final decision on the payment for the lot,” said Mykola Kotnyuk.

If the winner does not buy the special permit, he will lose UAH 2 million of the guarantee fee, and the right to buy it will go to Com Resource LLC.

It should be noted that this was the second attempt by the State Service of Geology and Subsoil of Ukraine to find an investor for the Polyana field. At an auction in July, the lot was valued at UAH 35 million, but the special permit remained unacquired. Then, another company of Mykola Kotnyuk, Ukrainian Amber LLC, offered UAH 22,000,001 for the Polyana plot.

Kom Resurs LLC also participated in the first auction, valuing the lot at UAH 4,710,000. In July, the company was solely controlled by Ivan Debeliy (Antonov, Kryshchenko and Vertyporokh became owners of the company in August.

 

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Vadym Stolar’s company buys Kyiv-based Avtomekhbaza state motor transport enterprise at auction

Tower Group LLC, the beneficiary of which is businessman and politician Vadym Stolar, has purchased the only property complex of the state motor transport enterprise Avtomekhbaza in Kyiv at a privatization auction.

According to information on the Prozorro website, Tower Group offered UAH 80.5 million for the asset at a starting price of UAH 31.9 million (excluding VAT).

The lot includes administrative premises and garages with a total area of about 1.7 thousand square meters, as well as a fleet of cars.

The company’s debt to the budget for the first quarter of 2024 is UAH 528.1 thousand, according to the State Property Fund.

According to Opendatabot, the owners of Tower Group are Genesis (89%) and Phoenix (11%), with Stolar listed as the ultimate beneficiary.

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Auction for privatization of Ukraina Hotel will be held on September 18

The State Property Fund (SPF) of Ukraine has announced an auction for the privatization of the Ukraina Hotel with a starting price of UAH 1 billion 47.6 million. According to the SPFU press service, applications for participation in the auction scheduled for September 18 will be accepted until September 17. The guarantee fee is UAH 52.3 million.

The lot includes 14 registered units of real estate and infrastructure, including a hotel building; two security buildings; two non-residential buildings; two parking lots, etc. The total area is 26.3 thousand square meters.

According to the results of January-March 2024, the net loss of SE Hotel Ukraine amounted to UAH 3.1 million. In addition, as of March 31, it had wage arrears (UAH 3.8 million), overdue accounts payable (UAH 21 million), and budgetary debts, namely personal income tax (UAH 4.7 million), tourist tax (UAH 1.4 million), and land tax (UAH 4.5 million).

The privatization terms stipulate that the company’s core business (hotel operations) will be maintained for five years, that wage and budget debts will be paid within six months of the transfer of ownership, that social guarantees will be provided to employees in accordance with the law and that they will not be dismissed within six months, and that environmental legislation will be complied with.

As reported, in April, the Cabinet of Ministers of Ukraine included Hotel Ukraina in the list of large-scale privatization objects. In May, the auction commission set the starting price for the privatization of the Ukraina Hotel at UAH 1 billion 47 million 637 thousand 152.

The Ukraine Hotel is a state-owned enterprise managed by the SPFU. The 14-story, 4-star hotel has 363 rooms, six conference halls and meeting rooms. There is a parking lot for 80 cars and a shelter with a separate auditorium for 50 people. The total area of the building is 22.4 thousand square meters.

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PrivatBank has put up for auction one of largest shopping centers in Dnipro – Priozerny

JSC CB PrivatBank has put up for sale through the OpenMarket electronic trading system (SE SETAM of the Ministry of Justice of Ukraine) the shopping center “Pryozernyi” in Dnipro. The sale of one of the largest and most attractive shopping centers for retail development in Dnipro is part of the bank’s program of selling non-operating real estate under a transparent and open bidding procedure.

Built in 2009, Priozernyi shopping center is the third largest shopping center in Dnipro (over 32 thousand square meters) and has six above-ground floors and an underground floor with a parking lot and a shelter for visitors during air raids.

“PrivatBank has successfully defended in court the ownership of the Priozerny shopping center, which was transferred to the bank’s balance sheet as collateral for loans before the bank’s nationalization,” says Olena Yevtushenko, Head of Real Estate Management at PrivatBank. – “Retail is not a banking business, so today we are offering a very interesting object at an open auction that can become one of the leaders in the market of retail and entertainment services.

“SETAM has successful experience in selling similar lots from the balance sheets of banks across Ukraine, including PrivatBank. For our part, we guarantee open access to all those wishing to participate (citizens and business representatives) in the auction and an open bidding process,” said Oleksandr Mamro, CEO of SETAM.

The unique advantages of Priozerny shopping center are its convenient location in the city center near the Central Market and railway stations. Also, Priozerny shopping center is currently the only shopping center in the city that has both retail space, office and warehouse space, as well as entertainment and sports areas with swimming pools and a SPA zone.

Depending on the format and size of the outlets, the shopping center can have up to 100 tenants. The shopping center has six elevators and four escalators, a central entrance equipped with a ramp, underground parking for 100 cars, as well as a ground parking lot with 40 parking spaces.

The starting price of the lot is UAH 430,060,700.00 including VAT. The date of the electronic auction is August 28, 2024 (lot No. 556963), the guarantee fee for participation: 5% of the initial sale price of the property (UAH 21,503,035), which will be credited to the sale price.

The lot consists of a shopping center with a total area of 32,408.7 sq.m. located at 1 Maidan Ozernyi (Bobrova) Str., Dnipro, and 12 land plots. In addition to the lot price, the successful bidder is obliged to purchase fixed assets worth UAH 2.2 million including VAT.

Detailed information and conditions of participation in the auction are available here.

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