The Antimonopoly Committee of Ukraine (AMCU) has authorized Cliff Capital Growth Fund Vcic Ltd (Cyprus), a company associated with Kovalska ICG, to acquire a stake in Unit B04 LLC.
According to the committee’s decision of February 8, the Cypriot company received permission to acquire a stake that ensures exceeding 50% of the votes in Unit B04’s supreme management body.
Kovalska Group CEO Serhiy Pylypenko told Interfax-Ukraine that Kovalska Real Estate was the developer of B04.
“Now, by increasing our share in the property through a shareholder company, we intend to become the sole owner of this ultra-modern facility,” Pylypenko said.
According to Opendatabot, Cliff Capital Growth Fund Vcic Ltd currently owns 50% of the B04 building of the Unit.City innovation park. Another 50% is owned by Unit Holdings LLC, the ultimate beneficiary of which is businessman Vasyl Khmelnytsky.
As reported, the AMCU approved the acquisition of Kovalska’s stake in buildings B04 and B06 from Unit.City in 2021. The group planned to invest $70 million in the construction of five business centers in Unit.City – B01, B02, B03, B04, B06.
The Cliff Capital Growth investment fund is managed by Guardo Assets Management, which also manages the Aksioma, A Realty, AC Real, and Vingis funds.
Kovalska Industrial and Construction Group has been operating in the Ukrainian construction market since 1956. It unites more than 20 enterprises in the field of raw materials extraction, production and construction. Its products are represented by the brands Concrete by Kovalska, Avenue, and Siltek. Kovalska’s enterprises operate in Kyiv, Zhytomyr, Lviv, and Chernihiv regions. The aerated concrete plant in Kherson region has not been operating since the beginning of the occupation. The group also includes Kovalska Real Estate, which is engaged in the construction of residential properties in Kyiv. Its portfolio includes more than 20 completed residential projects.
Share of new buildings, in which construction was resumed, by regions of Ukraine
Source: Open4Business.com.ua and experts.news
The Cabinet of Ministers of Ukraine has adopted a resolution which introduced the procedure for extending the law “On guaranteeing the rights to real estate objects that will be built in the future”, the head of the party “Servants of the People”, MP Elena Shulyak said.
“Ukraine has created a legal mechanism for the state to guarantee the rights to objects of unfinished construction and future real estate. Our #5091 in action! “, – wrote Shulyak in Facebook.
Implementation of this law will protect people investing in the construction of apartments, from disadvantaged developers (which, in particular, is extremely important in the reconstruction of the country after the war). The developer who wants to sell the apartments, garage boxes, other residential and non-residential premises or parking spaces must necessarily register each of these objects as a special object of property rights in the section of the register of real rights. Also, the developer must disclose detailed information about the object of construction, data about himself and the ultimate beneficiaries.
“A transparent primary real estate market and restoration of trust in construction companies is our common small internal victory,” said Shulyak.
She specified to Interfax-Ukraine agency that the corresponding section of the register is expected to be launched on June, 16.
As it was reported, the president of Ukraine Volodymyr Zelenski signed the law “On guaranteeing property rights to real estate that will be built in the future” on September 8, 2022 to protect the rights of investors in new housing.
The corresponding bill #5091 was passed by the Verkhovna Rada on August 15.
Share of new buildings, in which construction was resumed, by regions of Ukraine in march 2023
Source: Open4Business.com.ua and experts.news
The number of homes under construction in the U.S. in February rose 9.8 percent from the previous month to 1.45 million at an annualized rate, a five-month high, according to the country’s Commerce Department.
According to the revised data, the number of new buildings in January was 1.321 million, rather than the 1.309 million previously announced. Despite the revision, the January figure was the lowest since June 2020.
Experts had predicted an increase in the number of new buildings in February to 1.31 million from the previously announced January level, according to Trading Economics.
The number of new buildings was down 18.4 percent from February 2022.
The number of new home construction permits issued in the U.S. in February increased 13.8% to 1.524 million on an annualized basis from 1.339 million a month earlier. Analysts’ consensus forecast suggested that the number of permits in February would be 1.34 million.
Construction of single-family homes rose 1.1% last month, to 830,000. Permits for such homes rose 7.6%, to 777,000.
In the case of apartment buildings (including apartments and condominiums), a more volatile market segment, there was a 24.1% increase, to 608,000. The number of permits for construction of apartment buildings increased 21.1%, to 747,000.
More than 70% of construction sites in Kiev, Lviv and Odessa continue to work, prices for the year increased in the capital by 36.1%, in Odessa by 48.4%, in Lviv by 82.7%, said the founder of M4U Vladimir Danilenko to the agency “Interfax-Ukraine”.
“During the year of war in Ukraine, real estate markets in most major cities continued to grow. The cost per square meter rose during the year in line with rising production costs, the devaluation of the hryvnia and the distance from the front line. In October 2022 the tendency has changed: the prices in Lviv continue to grow, in Kiev and Odessa have stabilized”, – said Danylenko.
According to M4U, the number of active construction in the capital today is 83.7% of the beginning of February 2022 – 185 of 221 housing estates.
At the beginning of February 2023 the average price per square meter in new buildings in Kiev was 61 thousand 234 UAH. This is 36.1% higher than it was before the Russian invasion of Ukraine, but 1.2% lower than in January. Prices were rising most actively in the summer, when most sales departments resumed their work and when the official dollar exchange rate went up. From June to September the average cost per square meter increased by 26.7%.
“Today the pace of construction work is much lower than before the war, so it does not make sense and possible for developers to often recalculate the cost of construction. Market factors for price increases are also absent,” Danilenko explains.
According to the study of M4U, the largest increase in the cost per square meter was noted in the segments of elite (+46.1%) and economy (+44.3%). The price increase in popular among buyers classes of comfort and business was 35.5% and 34.4%, respectively.
At the beginning of February 2023 the majority of real estate offers are concentrated in the price range from 34 to 54 thousand UAH/sq. m, comfort class objects prevail among them.
Traditionally the biggest number of actively built and sold new buildings, as well as apartment offers, is in Holosiivskyi district of Kiev. More than a half of them (16 out of 29 Residential Complexes) are the objects of comfort class. The second largest volume of construction is in Pechersk district, where 15 out of 26 housing estates are positioned in business class, the rest – the elite. In Shevchenkivskyi district of Kiev 24 residential complexes are under construction, most of which belong to business class. Fewer new homes are being built in Obolonskyi (11 LC) and Desnianskyi (10 LC) districts. At the same time the supply of new apartments in Desniansky district is twice as much as in Obolonsky, there is more housing in the economy class housing.
In the Kiev region at the beginning of February 2023, 204 out of 263 construction sites resumed their work a year ago (77.5%). A square meter in the suburbs of the capital on average has risen by 34.1%, to 31 844 UAH. As in the capital, the most active price increase occurred in summer, from October to February prices remained practically unchanged.
In contrast to the capital, the prices for new buildings of the comfort class rose more substantially – by 33%, to 29,992 UAH. Apartments in new buildings of economy and business classes rose in price by 30% and 30.1%, respectively. The price increase in objects, positioned in the elite class, was 28%.
Most proposals of the capital region belong to comfort and business classes, price range is 26-32 thousand UAH.
Most of the objects are built and sold in Irpen (41 LC), Sofievskaya Borschagivka (17 LC), Brovary, Gostomel (13 LC) and Bucha (12 LC). By volume of apartments for sale are leaders in Sofievskaya Borschagivka and Brovary, a few less proposals in Kryukivschyna, Irpen, Bucha.
In Lviv and the Lviv region the number of new buildings in active construction and sales is now the same as it was before the Russian invasion – 218, during the year this figure has changed slightly.
The average price per square meter for the year increased by 82.7%, to 45 706 UAH.
The majority of objects in Lviv are in the price range from 24 to 34 thousand UAH, in the structure of supply the comfort class dominates.
Thus, according to the study of M4U, the greatest price dynamics is observed in the business class, where the cost per square meter for the year increased more than twice, by 109%. In the economy segment, prices rose by 66.7%, comfort by 60.3%, and elite by 58.7%.
The largest amount of apartments in new buildings are in Shevchenkivskyi (35 LCD) and Sikhivskyi (32 LCD) areas.
In Odessa and the region a square meter in new buildings during the year of war increased by an average of 48.4%. Here are active 131 out of 180 construction sites before the war (72.8%).
Prices, like in other regions, were rising during the summer, in October the growth stopped, and in December there is even a decrease in prices, an average of 2.3% for two months.
Over the year a square meter more expensive in the segments of economy and elite – 59% and 57%, respectively. The average price increase in new buildings in the comfort class was 46.1%.
“The most interesting dynamics is in the business class: during the year the cost per square meter increased by an average of 39.5%, but it is in this class we observe the largest price decrease during September 2022 – February 2023, which was 5.1%,” – said Danylenko.
The majority of proposals in Odessa new buildings are in comfort and business segments in the price range of 24-38 thousand UAH.
The leader by the number of new buildings is Primorsky district, where now the apartments are sold in 30 residential complexes, of which 16 are positioned in the elite class. In Kievsky district 25 Residential Complexes are under active construction, 12 of which belong to comfort class.
Founded in February 2020, Ukrainian proptech company M4U specializes in the development and implementation of complex intelligent solutions in real estate development.
