Dragon Capital Investment Fund, together with its partners, has invested $400 million into Ukrainian real estate since 2016, the press service of Dragon Capital has reported.
“Since 2016, Dragon Capital, together with its European and American partners, has invested $400 million into Ukrainian real estate. Our future investment plans will significantly depend on the pace of reforms in Ukraine, above all in judiciary and law enforcement,” Dragon Capital CEO Tomas Fiala said.
The partners of the fund are Goldman Sachs, George Soros, and OPIC.
As reported, Dragon Capital Group jointly with co-investors since 2016 has been actively investing in purchase of commercial real estate, mainly in Kyiv city and region.
The portfolio of the investment fund, as of October 2018, includes several business centers – Kyiv’s Prime and Eurasia, business center located at 98, Velyka Vasylkivska Street, Horizon Park, Business Center Platinum, and Zaporizhia-based Eco Tower Business Center.
The portfolio of shopping centers includes the Victoria Gardens shopping center (Lviv), Sky Park shopping center (Vinnytsia), Pyramida shopping center (Kyiv), logistics centers near Kyiv — West and East Gate Logistic, Omega 1 and Omega 2; a logistic complex and industrial complexes in Brovary.
Dragon Capital Investments Limited is part of Dragon Capital group of companies, founded in 2000 and one of the largest in the Ukrainian investment market. It works in the field of direct investment and financial services, provides a full range of investment banking and brokerage services for corporate and private clients.
Horizon Capital Group, which manages $800 million, plans to invest up to $200 million in Ukraine over the next three or five years, Denys Tafintsev, a senior partner and a member of the Horizon Capital investment committee, has said at the Kyiv International Economic Forum. “Ukraine has a relatively stable macroeconomic situation and poorly priced assets: six years ago they were three times more expensive,” he described the current situation. Tafintsev noted that large international investors are unlikely to come to Ukraine on the eve and during the presidential and parliamentary elections scheduled for 2019.
“This is a good opportunity for us as a domestic fund,” he said. According to him, among the company’s industry priorities are IT, processing, export sectors, and light industry.
Tafintsev noted that Horizon Capital invests in share capital, avoiding companies with large debts.
He told Interfax-Ukraine that the named volume of investments is planned not only at the expense of the new investment fund Horizon Capital is currently creating, but all the company’s investments.
Nibulon will invest $19 million in construction of a river transshipment terminal in Ternivka (Zaporizhia region).
According to a posting on the company’s website, the launch of the terminal is scheduled for June 2019.
Along with the terminal, the project envisages construction of a berth of over 3 km long and dredging works on the Ploska Osokorivka River.
The company said that the terminal will hire 120 employees and will pay over UAH 2.7 million of taxes to the local budget a year.
The terminal will be third for the company in Zaporizhia region.
Nibulon was established in 1991. It is one of the largest operators in the grain market of the country. Nibulon cultivates 83,000 hectares. It exports agricultural products to more than 60 countries of the world. The annual export volume exceeds 4.5 million tonnes.
Kyiv Sikorsky International Airport (Zhuliany) is planning to reconstruct the main Terminal A with an area of 14,000 square meters and expand it by 9,500 square meters, estimating investment in this project at UAH 630 million.”The expansion of the terminal area by 9,500 square meters will help double its capacity,” the airport’s press service reported on Tuesday.
The airport’s press service told Interfax-Ukraine that the current airport capacity is about 700 people per hour.
Kyiv International Airport (Zhuliany) is located in the business center of the capital, seven kilometers from the city center. It is the second largest airport in Ukraine in terms of the number of flights and passenger traffic. The airport has three terminals with a total area is 21,000 square meters. Terminal B is separate facility for business-class service, it is part of the Fixed Base Operator (FBO) system. The airport’s runway is able to handle B-737 and A-320 aircraft. In the first nine months of 2018, the airport serviced 2.165 million passengers, which is 57.3% more than in January-September 2017.
AIRPORT, AREA EXPANSION, INVEST, RECONSTRUCTION, TERMINAL, ZHULIANY
Textile-Kontakt Group, a leading textile fabric seller and producer in Ukraine, in 2019 plans to invest up to UAH 100 million in a new enterprise that will produce fabric in Chernihiv. Its opening is scheduled for December 2018. “To create new production facilities, Textile-Kontakt plans to invest up to UAH 30 million this year, and up to UAH 100 million by the end of 2019,” the company’s press service reported. In September, the group began repairing workshops with a total area of 3,500 square meters and installation of new equipment. The capacity of the plant will be 2-3 million meters of fabric per year.
The launch of the new production site will allow creating up to 80 jobs and with reaching the full production capacity by the end of 2019 the enterprise will employ up to 100 more people.
According to a press service, the main assortment will be fabrics made from 100% cotton: twill, bleached calico and printed cotton, as well as blended raincoat fabric “Greta”. The company also plans to produce a special fabric for the Ministry of Defense of Ukraine.
The press service reminded that until 2014, the group of companies Textile-Kontakt included the company TK-Donbas, which produced up to 60% of cotton fabrics in Ukraine (2 million meters per month). After 2014, control over the enterprise was completely lost. In 2017, the company planned to create a joint venture with the company Temp-3000 and launch production on the basis of Bohuslavsky Textile (Kyiv region). But from January 2018, Textile-Kontakt left the joint venture, and it was decided to create its own enterprise.
Textile-Kontakt was founded in 1995 and today represents a holding company that combines various areas of assets: wholesale and retail trade, the import of fabrics, accessories and home textiles, as well as tailoring of special clothing (including military uniforms). The founder of the group is Ukrainian businessman and public figure Oleksandr Sokolovsky.
BASF, an international chemical producer, is to invest EUR 2 million in a new plant that will produce concrete additives in the town of Obukhiv, Kyiv region, which is to open next spring, Managing Director (CEO) at BASF Ukraine Andreas Lier has said. “There will be about EUR 2 million in investment. This is our first investment in Ukraine. If it is successful, we will continue investing in this production. We have already been present in the Ukrainian market with these products for several years. We have been importing this product for a long time, but now we’ve decided we want to produce it here,” Lier told Interfax-Ukraine.
BASF’s National Development Manager Oleksandr Ruban says that the plant’s production capacity will be 10,000 tonnes of produce per year with the possibility of boosting the output in future. The plant is scheduled to be launched in March-April 2019.
Production in Ukraine will halve the price of concrete additives and will also allow the company to significantly increase its market share.
“Now we are bringing all the additives from abroad, and our share in the market is very small – less than 1%. We plan to grow up to 10% of the market in the first year,” Ruban said in a comment to the Kyiv-based Interfax-Ukraine news agency.
Governor of Kyiv region Oleksandr Horhan forecasts that the production of the additives at the plant in Obukhiv will speed up the pace of construction in Kyiv region.
“Kyiv region is the leader in construction. These additives will make frame-monolithic construction possible amid sub-zero temperatures, allowing construction all the year round. Now such additives are available on the market, but they are imported and expensive,” Horhan said.
