Investment company Concorde Capital, which acquired the plant “Kuznya na Rybalskogo” at the end of 2022, is developing the concept of a new development project on the territory of the plant, said the head of Concorde Capital Igor Mazepa in a commentary to the publication “Economic Pravda”.
According to Mazepa, the concept is being developed jointly with foreign architectural agencies. The businessman expects to start construction after the completion of legal proceedings around the bankruptcy of “Kuzna na Rybalskogo”.
He also indicated that Concorde Capital is considering participation in joint investment in the project.
“Our initial plan was to attract an investor to resell the project. Now the situation has changed, so we do not rule out participation in joint investment,” Mazepa said.
He did not disclose the amount of the deal to acquire the plant “Kuznya na Rybalskogo”, previously owned by Sergei Tihipko, but indicated that the deal included assets encumbered by debts of the owner company Ewins Limited.
As reported, in the fall of 2018, co-owner of the TAS Group, businessman Sergei Tihipko acquired from Petro Poroshenko, at that time the President of Ukraine, PJSC “Plant “Kuznya na Rybalskoe” (formerly – PJSC “Leninskaya Kuznya”) – one of the well-known in the market of shipbuilding enterprises of Ukraine.
Until mid-November 2018, the main shareholder of PJSC “ZNKIF “Prime Assets Capital” (formerly – “Petro Poroshenko Fund”, Kiev) was the main shareholder with a 73.9067% stake in the shipyard privatized in 1995, the second largest shareholder with a 20.1280% stake was PJSC “ZNKIF “VIK”, which concentrated the assets of MP Igor Kononenko.
In December 2022, the Economic Court of Kyiv opened a bankruptcy case against PJSC “Plant “Kuznya na Rybalskogo” (Kyiv).
As reported, the TAS group planned to realize on the unused territory of the plant the Lipki Island City Resort project in partnership with the developer City One Development.
According to the National Commission on Securities and Stock Market, as of the second quarter of 2023, the main shareholder of Zavod Kuznya na Rybalskoe is Ewins Limited (94.0347%).
Concorde Consulting LLC, a member of the Concorde Capital group of companies, acting as an adviser on the privatization of PJSC President Hotel, has set its starting price at UAH 390 million, the company’s press service has reported.
The company said that they expect a significant increase in prices during the privatization auction due to the competition of bidders. At the same time, even a sale at the starting price will bring more benefits to the state than income in the form of annual dividends, according to Concorde Capital.
“There is no need to keep the President Hotel in state ownership. This is not a strategic facility. Today, the hotel is in a state that requires significant investments. In the near future, it can take a significant place on the hotel map of Kyiv precisely by attracting the necessary investments through privatization,” CEO of Concorde Capital Ihor Mazepa said.
According to him, the modernization of the hotel and its further operational management could create hundreds of jobs.
Thus, Concorde Capital recommends holding a competition for the privatization of the President Hotel in the near future.
Concorde Capital’s independent appraisal partners were Marcus Bureau, Creston GCG, BDO Consulting, Redcliffe Partners and Cushman&Wakefield.
Earlier, the starting price of the President Hotel at the privatization auction, according to UkraineInvest, was estimated at $12 million.
Recent changes in the financial market of Ukraine are favorable for the emergence of investor interest in new instruments, and the investment company Concorde Capital plans to bring about a dozen companies to an initial public offering (IPO) in two years, the founder and CEO of Concorde Capital, Ihor Mazepa, has said.
“I perceive this as a personal challenge and my personal ambition and ambition of my colleagues at Concorde: … I give myself, roughly speaking, two years to bring a good ten companies to an IPO,” Mazepa said at the presentation of the UAH 50-100 million IPO of the Veres Rivne People’s Club in Kyiv.
The CEO of the investment company believes that in recent years there has been a good trend in the market, which was previously observed in the neighboring markets of Eastern Europe and Russia. “When deposit rates fall, the investor has a feeling of discomfort. What I have seen for the last six or nine months: there has been such a huge trend that a class, a huge group of investors has begun to form in the country. Our fellow citizens really brought money to the stock market,” Mazepa said.
According to him, now this money goes to American and European exchanges.
“I want to walk this path, create or return this culture of investment to our country,” the CEO of Concorde Capital said.
He also said the company is developing a phone application for investors that will allow them to buy/sell securities online. According to him, the development cost is up to $1 million, and it can be launched before the end of this year or early next year.
The head of the investment group Concorde Capital, Ihor Mazepa, has announced the entry into a project of a cottage village and a hotel in the Shelest suburban complex and the construction of phase two of Goodlife Park in Vyshgorod district of Kyiv region.
At this stage it is planned to send more than $25 million to the implementation of the projects, and the total amount of investments in them, taking into account previous investments, will exceed $60-65 million.
“Previously, the main focus was on the growth of consumption, so we invested in the production of cardboard and cement, now we are betting on de-urbanization and suburban real estate. There are at least three more projects similar in scale to Goodlife and Shelest in the pipeline,” Mazepa said in an exclusive interview with Interfax-Ukraine.
Thus, the group is investing about $10 million in the Shelest cottage community project, located next to the Shelest suburban complex near Kyiv. The housing area in the project will be 10,000 square meters.
In addition, on the territory of the Shelest complex, the construction of its hotel part with 100 rooms, including a SPA, continues. Investment in the hotel project is $15 million.
“In total, Shelest will have $30-35 million [of investment], taking into account previous investments,” Mazepa said.
The construction of phase two of the elite cottage town Goodlife Park has also started. The project provides for the construction of 30 cottages and additional infrastructure. According to Mazepa, the total investment in Goodlife Park is $35 million.
“In addition, we are considering a couple of similar projects in other directions, and we will look for co-investors for them. Accordingly, we expect a decent return on investment,” he said.
As Mazepa said, the de-urbanization trend and quarantine restrictions significantly increased the demand for suburban real estate, which stimulated an increase in rental rates and prices.
“We are witnessing a boom in the suburban real estate market: rental rates have grown by 1.5 times, especially in the premium segment. There are cases when they have doubled. We have simply sorted out everything decent that could be rented. And this, of course, affects the sale of new suburban real estate. If rents go up, then property prices also go up. And along with this, buying activity grows. This is what we have seen for the past nine months. This applies to Goodlife, Shelest, as well as many other suburban stories – everything is perfect there: a new demand began to appear, which we have not yet seen and which we did not expect,” he said.
Ukrainian seaports increase transshipment of cargo to 132 mln tonnes in 10 months
Interpipe, an international vertically integrated pipe and wheel company, based on the results of activities in the second quarter of this year is expected to reduce revenue by 16% compared to the previous quarter, to $ 212 million, EBITDA by 44%, to about $ 48 million.
“We expect Interpipe’s Q2, 2020 EBITDA to amount to about $ 48 million, a 44% quarter-over-quarter plunge. Contributions to Q2, 2020 EBITDA by segment (before reallocation of steel segment EBITDA) are expected to be as follows: negative $ 5 million from pipes (flat quarter-over-quarter), $ 38 million from railway products (a 45% plunge quarter-over-quarter), and $ 15 million from steel (26% less quarter-over-quarter),” according to the estimate of Dmytro Khoroshun, an analyst from Concorde Capital, published in the investment company’s bulletin.
“Revenue from seamless pipe sales should have inched up 3% quarter-over-quarter, to about $ 104 million in Q2, 2020, driven by a 6% increase in sales volumes to 103,000 tonnes, offset by a 3% drop in average sales price to $ 1,015/tonne,” the report says.
“We estimate revenue from welded pipe sales will jump 49% quarter-over-quarter in Q2, 2020, to $ 16 million, due to a 43% gain in volume to 22,000 tonnes and a 4% rise in price to $ 746/tonne,” according to the document.
“We calculate Interpipe’s railway product segment revenue will plunge 34% quarter-over-quarter, to $ 84 million in 2Q20, as a 20% drop in sales volume to 46,000 tonnes will be exacerbated by a 17% drop in price to $ 1,822/tonne,” the expert said.
The partners of Concorde Capital investment company in the transaction for the purchase of assets of HeidelbergCement Ukraine were Vice President of PJSC Galnaftogaz Concern Vasyl Danyliak, as well as businessmen Ivan Shestak and Ihor Zavinovsky.
“The development of companies acquired from HeidelbergCement will be carried out by Ihor Mazepa together with the partners Ivan Shestak, Vasyl Danyliak, and Ihor Zavinovsky,” the press service of Concorde Capital told Interfax-Ukraine.
According to the decision of the supervisory board of PrJSC HeidelbergCement Ukraine, at the end of April Zavinovsky was elected head of the company for a term of three years. According to the report in the information disclosure system of the National Commission on Securities and the Stock Market, in the past five years he has held the post OF Commercial director of New Geodetic Technologies LLC, and does not own shares in HeidelbergCement Ukraine.
As reported, on May 14, 2019 Cyprus-based Overin Limited, associated with Concorde Capital, became the owner of a controlling stake (99.8308%) in PrJSC HeidelbergCement Ukraine.
