The State Property Fund has completed the valuation of the Ukraina Hotel and plans to hold an auction for its privatization in late summer 2024, and for the Ocean Plaza shopping mall in the second half of the year, Vitaliy Koval, the head of the SPF, said in an interview with Mind.
“We have already completed the valuation of the hotel, which amounts to UAH 1.039 billion excluding VAT. We are now preparing for the auction, which we plan to hold in late summer, maybe even in the third quarter,” he said.
According to the SPF head, foreign operators are interested in privatizing the Ukraina Hotel, in particular, as they are considering upgrading it to a five-star hotel.
In addition, according to him, more than three bidders are considering participation in the auction for the privatization of the Ocean Plaza shopping center, and the Fund has received inquiries from investment funds and development companies.
As reported, the Ukraina Hotel is a state-owned enterprise managed by the SPF. It 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. At the same time, the hotel’s debt is over UAH 45 million.
Ocean Plaza was opened in Kyiv in December 2012 at 176 Antonovycha Street. Its total area is 165 thousand square meters. Investments in the facility amounted to approximately $300 million. UDP and K.A.N. Development LLC acted as partners in the development of the project.
The mall was sold to Arkady Rotenberg’s Russian TPS Real Estate in 2012. Later, in 2019, Ukrainian businessman Vasyl Khmelnytsky indirectly acquired a 33.5% stake in Ocean Plaza through UPD Holdings Limited. In 2021, he sold his stake to entrepreneur Andriy Ivanov. The deal was finalized in the summer of 2023.
In June 2023, the Cabinet of Ministers transferred a 66.65% stake in the authorized capital of Lybid Investment Union LLC, which owns the mall, to the SPFU for further privatization.
The Cabinet of Ministers of Ukraine has included 66.65% of the authorized capital of Lybid Investment Union LLC, which owns the Ocean Plaza shopping mall in Kyiv, in the list of large-scale privatization targets.
According to Taras Melnychuk, a representative of the Cabinet of Ministers in the Verkhovna Rada, the decision was made at a government meeting on Friday.
In October 2023, the State Property Fund of Ukraine appealed to the government with an initiative to include the state-owned stake (66.65%) in the Ocean Plaza shopping mall in the list of large-scale privatization objects. The Fund recommended setting the starting price for the sale of the state-owned stake in the mall at the level of its book value for the last reporting (annual) period.
At the end of 2022, the value of the state share amounted to UAH 1.32 billion (the carrying value of the entire asset was UAH 1.98 billion). At the same time, the Fund expects the sale of the lot to be more expensive than the book value.
As reported, on June 9, 2023, the Cabinet of Ministers approved an order to transfer to the SPF a 66.65% share of the authorized capital of Lybid Investment Union LLC, which owns the mall, in the amount of 66.65%.
Previously, these corporate rights belonged to Russian businessmen Arkady and Igor Rotenberg, who are subject to sanctions, but in March 2023, the High Anti-Corruption Court ruled to recover them in favor of the state.
Ocean Plaza was opened in Kyiv in December 2012 at 176 Antonovycha Street. Its total area is 165 thousand square meters. Investments in the facility amounted to approximately $300 million. UDP and K.A.N. Development LLC were partners in the development of the project.
The mall was sold to Arkady Rotenberg’s TPS Real Estate in 2012. Later, in 2019, Ukrainian businessman Vasyl Khmelnytsky indirectly acquired a 33.5% stake in Ocean Plaza through UPD Holdings Limited. In 2021, he sold his stake to entrepreneur Andriy Ivanov. The deal was finalized in the summer of 2023.
The sale of a share (33.35%) of the Ocean Plaza shopping mall to Andrey Ivanov has been officially finalized, businessman Vasyl Khmelnitsky said.
“Last week were officially finalized all transactions on the sale of my share of Ocean Plaza shopping mall to my long-time partner Andrei Ivanov,” – said Khmelnitsky on Facebook.
Ocean Plaza shopping mall was opened in Kiev in December 2012 on Antonovycha Street, 176. Its total area is 165 thousand square meters. m. Investments in the mall amounted to about $300 mln. UDP Company and K.A.N. Development LLC acted as partners in the development of the project.
The mall was sold to Arkady Rotenberg’s Russian TPS-Nedvizhimost in 2012. Later, in 2019, businessman Vasily Khmelnitsky indirectly through UPD Holdings Limited acquired a 33.5% stake in Ocean Plaza shopping mall. In 2021 he sold his stake to entrepreneur Andrei Ivanov, the deal was finalized in the summer of 2023.
“More than three years ago, my partner Vasily Khmelnitsky and I reached an agreement under which I would gradually buy out the development company UDP, whose investments had been under my management for a long time. The agreement to buy out 33.35% of shares of Ocean Plaza shopping mall, which is part of UDP, is a logical continuation of the process”, – commented the owner of the investment company Q Partners Andrey Ivanov to the agency “Interfax-Ukraine”.
As reported, in June 2023, the FGI registered corporate rights to the state share (66.65%) in the shopping mall Ocean Plaza.
“In the public communication of the fund we hear intentions to sell their stake already by the end of this year. As a minority owner, we are fulfilling all the state’s requirements to prepare the company for sale. Our further view on the development of this asset will depend on the results of privatization,” – said Ivanov.
Earlier it was reported that the Cabinet of Ministers on June 9, 2023 adopted an order on the transfer to the FGI share of the authorized capital of LLC “Investment Union “Lybid”, which owns the shopping mall, in the amount of 66.65%. Previously, these corporate rights belonged to Russian sub-sanctioned businessmen Arkady and Igor Rotenberg, but in March 2023, the Supreme Anti-Corruption Court recovered them in favor of the state by its decision.
On March 3, the Ukrainian Justice Ministry filed a lawsuit with the HACC to confiscate the companies that own two-thirds of the Ocean Plaza shopping mall (Kiev), including the Rotenbergs’ assets. Earlier, as part of the criminal proceedings, the arrested corporate rights of the companies for more than 350m hryvnyas were transferred to the National Agency for Identification, Search and Management of Assets Derived from Corruption and Other Crimes.
The founder of Mandarin Plaza company, investor and developer in Lavina, Blockbuster, Ocean Mall and other shopping centers, Vagif Aliyev, has said that he plans to acquire Ocean Plaza mall by autumn 2019.
“We are still negotiating. I think we will buy first phase of Ocean Plaza by the autumn… and connect with Ocean Mall shopping center. Therefore, please, those [shops] which are located in Ocean Plaza, please consider Blockbuster and Lavina, because I think I will buy it by the autumn. I will not leave any brand there [in Ocean Plaza shopping center], no matter what it is. I think all contracts will be terminated because we are moving systematically, and with this system we will go across Ukraine,” the businessman said during a closed-up tour for retailers at the Blockbuster Mall shopping center.
According to him, the opening of the first phase of the Blockbuster shopping center is scheduled for May 31, the launch of the second phase is planned for the autumn.
As reported, in February 2019, Board Chairman of Mandarin Plaza, developing the chain of shopping and entertainment centers Lavina, Blockbuster, Ocean Mall and others, Oleksandr Chernitsky told Interfax-Ukraine that the company is holding talks with TPS Real Estate on the acquisition of the Ocean Plaza mall.
