Business news from Ukraine

Business news from Ukraine

Share of investors buying S1 REIT fund certificates from developer Standard One has grown to 43%

The share of investors who repeatedly buy S1 REIT fund certificates from the developer Standard One has grown to 43% in the five months since the funds began operating, according to the project’s press service.

“We have provided investors with the opportunity to increase their profits by increasing their own share. The minimum additional investment is equal to the cost of one certificate, which is just over UAH 1,000. But despite our expectations, the average amount of repeat sales is significantly higher, at almost UAH 90,000,” said Viktor Boichuk, commercial director of S1 REIT, in a press release.

He noted that currently, the vast majority of investors are people with investment experience who already have a certain portfolio of assets.

“For them, S1 REIT is an opportunity to diversify their asset portfolio with a relatively small check. In the first weeks of our work, investors went through a ”getting to know you” phase, studying us and our offer. Now we see their confidence growing,” Boichuk added.

He added that the project plans to scale up by reaching a new audience—Ukrainians who have not yet had experience in investment activities due to a lack of knowledge or significant start-up capital.

“The key advantage of S1 REIT is its accessibility. The entry threshold is the equivalent of $3,000, which is significantly less than the initial investment in the Kiev real estate market,” said the top manager.

As reported, in April this year, Kiev-based developer Standard One, which specializes in Build-to-Rent projects, announced the launch of a new product, S1 REIT. This is an investment tool that allows you to become a co-owner of square meters in profitable S1 buildings without having to personally manage the assets. Currently, S1 REIT has two open funds: S1 VDNH, with a planned yield of 8.2% per annum in US dollars, and S1 Obolon, with a yield of up to 10% per annum.

 

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