The volume of new supply on the warehouse and logistics real estate market in Ukraine in 2021-2022 will amount to 364,000 sq m, while about 200,000 square meters is to be commissioned in the market of Lviv and the region, according to a study by Alterra Group.
“The leader is Lviv, where it is planned to put into operation about 200,000 square meters. In Kyiv, it is planned to introduce those projects that were predicted back in 2019 and 2020. In the regions, most of the premises planned for commissioning by developers are occupied by post offices and logistics companies,” Dmytro Kovalchuk, the co-owner of Alterra Group, said during the web conference on the analytics of the warehouse real estate market.
So, in Kyiv, the volume of new supply in 2021-2022 will amount to 71,400 square meters, among the planned projects, in particular, are the warehouse FM Logistic (17,000 sq m), Sun Factory 2 (23,400 sq m), Makarovsky of ADG developer (15,000 sq m).
Among the objects in Lviv are the expansion of the Protec warehouse in Zymova Voda by 40,000 sq m, the warehouse Lvivsilmash (42,200 sq m), a project from Galileo Logistic (45,000 sq m), Port Lviv Logistic Center (40,000 sq m).
According to the company, postal operators will continue to actively develop, the total construction volume of which will be about 158,000 square meters. Among the projects announced in 2021 is the expansion of the Nova Poshta network in Dnipro, Odesa, Kyiv with a total area of projects of 37,000 square meters, the construction of Ukrposhta logistics terminals in Kyiv, Kharkiv, Lviv, Dnipro and Odesa (22,000 sq m each), the expansion of the distribution center Mist Express in Lviv to 11,000 sq m.
Alterra Group is engaged in complex services for commercial real estate, development and consulting. The company’s portfolio includes 31 projects with a total area of 117,500 square meters.
Dragon Capital has completed the sale of the Omega-2 class A logistics complex with an area of 32,700 square meters in Brovary (Kyiv region), according to its press service on Monday.
“This is our first closing of a commercial real estate sale deal after we made a bet on this segment in 2016, and it demonstrates that there are opportunities in this market not only for profitable investments, but also for exits,” Dragon Capital Managing Director Volodymyr Tymochko said.
According to him, the company also continues to consider the possibility of spot acquisitions in the warehouse real estate sector. In addition, the plans also include the development of the company’s industrial parks in Kyiv (E40 Industrial Park) and Lviv (Ryasne-2).
Dragon Capital is one of the largest groups of companies in Ukraine, which works in the field of investment and financial services and provides a full range of investment banking, brokerage, and asset management services to institutional, corporate and private clients.
PrJSC Myronivsky Hliboproduct (MHP) intends to lease the logistics center Arctic (Arktyka) in the village Sofiyevska Borschahivka near Kyiv from Dragon Capital.
As follows from the agenda of the Antimonopoly Committee of Ukraine, the issue of granting permission for the lease is planned to be considered on January 11.
MHP is the largest poultry producer in Ukraine. It is also engaged in production of grain, sunflower oil, meat. MHP supplies the European market with chilled half-carcasses of chickens, which are processed, in particular at its factories in the Netherlands and Slovakia. In February 2019, MHP completed the acquisition of the Slovenian company Perutnina Ptuj.
In addition, at the end of 2020, the MHP supervisory board made a decision to establish a branch named MHP Logistics.
The founder and majority shareholder of MHP is Ukrainian businessman Yuriy Kosiuk.
Logistics Company Marken (the United States) has opened a pharmaceutical depot in Kyiv, according to a company’s press release published by PRNewswire.
“Ukraine continues to be important in Eastern Europe’s clinical trial market and our Kyiv depot will strengthen our position in the region,” Marken President Ariette van Strien said.
Marken’s depots include space for pallet storage and a full range of temperature-controlled storage options including refrigerators and freezers, the press release said.
Marken is a wholly owned subsidiary of the UPS Healthcare division. The company has a network of 56 depots for pharmaceutical products and biological samples around the world.
The postal and logistics operator Trade House Meest Express LLC (Meest Express, Lviv) has launched air delivery from the United States to Lviv.
“Meest is the first Ukrainian postal and logistic company with its own air delivery from the United States. Today we met the charter flight we rented in Lviv – Boeing 787-9 Dreamliner of the LOT airline – with parcels of our dear customers,” President of Meest Rostyslav Kysil wrote on his Facebook page.
He also said that this flight was the first transatlantic flight in Lviv.
The Lviv international airport said in a report that the Polish airline LOT performed the first test flight for Meest Express.
“We are very pleased with the opening of long-haul cargo transportation to Lviv. Since the onset of the aviation crisis, due to the COVID-19 pandemic, we have actively switched to finding alternative sources of income… Today, we have a beautiful Boeing 787-9 Dreamliner cargo aircraft from the airline LOT, performing a test presentation flight. Next, we will continue to work on which airline will deliver goods to Lviv,” Director General of the Lviv airport Tetiana Romanovska said.
According to her, the opening of such flights will save the situation with the financial condition of the enterprise and will provide an opportunity to improve it in the winter.
“From now on, the Lviv airport becomes not only a passenger, but also a cargo aviation hub,” Romanovska said.
Meest Group is part of Meest Corporation Inc. (Toronto, Canada). It provides postal and logistics services in 20 countries: Canada, the United States, Ukraine, Australia, Germany, the UK, France, Italy, Spain, Greece, Portugal, the Czech Republic, Poland, China, Kazakhstan, Georgia, Uzbekistan, Armenia, Azerbaijan, and Israel.
The gross occupancy of logistics real estate in the Ukrainian market in January-June 2018 increased by 43% compared to the same period in 2017 and amounted to approximately 100,000 square meters, according to statistics given in the study of CBRE Ukraine international consulting company (Kyiv). According to the CBRE Ukraine survey, the share of occupancy of warehouses by large retailers was 58%, by light industry, pharmaceutical and medical companies some 26%. About 62% of rental transactions were associated with relocation or extension.
The share of large transactions (more than 10,000 square meters) was 23% and was represented by leasing 20,000 square meters by Comfy in the Raben warehouse complex near Kyiv, as well as 20,000 square meters by Eldorado with the move to RLC Fozzy Distribution Center.
According to CBRE Ukraine, the vacancy rate in the first half of 2018 decreased by 2 p.p. and amounted to 4%.
The declared rent rates in A class warehouses at the end of the first half of the year were in the range of $4.6-6 per square meter a month. Effective rental rates in A class warehouse complexes ranged from $3.4 to $5.2 per square meter a month, while in B class warehouse complexes they stood at the level of $2.5-3.4, where the upper limit has grown by 13% since the beginning of the year. As a result of fluctuations in the exchange rate, rates in U.S. dollars were unstable, while most of the deals were signed in hryvnia.
