Ukrainian businessman Vasyl Khmelnytsky’s holding company UFuture has sold LvivTech.City to Western Ukrainian developer VD Group to optimize its portfolio. After reconception, the project will be implemented under the Lviv.City brand, with the first phase scheduled for completion by the end of 2025.
“Innovative parks and integrated projects that are a continuous ecosystem are a global trend that we have brought to Ukraine by creating UNIT.City and scaling the project in western and eastern Ukraine. I am pleased that the Ukrainian developers who became the new owners of LvivTech.City understand the prospects of this model. For me and UFuture, the funds raised from the sale will allow us to reduce the loan portfolio and redirect investments to key projects for the company,” commented Vasyl Khmelnytsky, founder of UFuture.
UFuture told Interfax-Ukraine that under the agreement, the office building B01 and corporate rights in the companies that own the LvivTech.City innovation park project were sold.
VD Group reported that they had changed the project concept, most significantly, changing the class from business to premium segment, respectively, and adjusting the content and materials.
“There is a shortage of high-quality premium housing in Lviv, which is always in demand by a certain audience. All that Lviv offers, calling it premium, is at most a business class. However, Lviv is a metropolis of the West, a logistics hub and a city with the largest number of relocated businesses, more and more Ukrainians are choosing it as their new home, and this trend is only growing over time,” the company’s press service commented.
The project is being adjusted by the team that created the concept of LvivTech.City – achimatika.
There are five phases, 11 buildings with a height of 7-11 floors, a total of 500 apartments, as well as a modern preschool, a hospital, coworking areas, and an extensive commercial component. At the same time, Lviv.City is implementing open planning solutions – a promenade with street retail and a square, the Korsa pedestrian road, will be arranged to connect the city center with Stryi Park. The project will reflect VD Group’s experience in creating panoramic rooftop pools.
The company focuses on the innovation and environmental friendliness of construction solutions. In particular, windows with safe glazing from floor to ceiling, 3.05 m high; warm aluminum, porcelain stoneware, environmentally friendly gypsum plaster, VRF system that allows you to create a personalized microclimate in the apartment, water purification using the world’s leading technologies, a separate ventilation shaft from each apartment, etc. will be used.
As for security issues, the underground floors, in addition to the parking lot, will have two separate shelters with the comfort of an apartment with bathrooms, a kitchen, a pet room, comfortable furniture, water, additional ventilation and a chimney. They will be designed for all residents and guests of the complex, and additional protected space is planned for each apartment.
The energy independence of the residents will be ensured through the use of diesel power plants. All engineering systems of the buildings are connected to uninterrupted power supply: heating, water supply, fire protection systems, communication networks and elevators. Additionally, to increase the level of comfort, flowing water storage tanks are installed in the basements. This solution makes it possible to compensate for the peak load on the water supply system during peak periods in the morning and evening.
According to VD Group, the start of construction work at the site is scheduled for the fourth quarter of 2024, and preparatory work is underway. The first phase is scheduled to be commissioned in a year, at the end of 2025.
As for the future price, the agency was informed by the pre-booking sales departments that it will be approximately EUR3.2-3.5 thousand per square meter, as they have ambitions to build “the most premium complex in Europe in the center of Lviv”, while all three-room apartments in the first phase have already been booked.
The construction company VD Group (EDRPOU code 39475589) has been operating since 2017, with Vasyl Kavlak as the ultimate beneficiary. The developer is implementing projects in Ivano-Frankivsk, Chernivtsi, Lviv, and Bukovel, 12 of which have been commissioned and three are under construction.
UFuture is a holding company of Ukrainian entrepreneur Vasyl Khmelnytsky that unites his commercial and social projects. The company has a diversified portfolio of assets in real estate, infrastructure, industry, renewable energy, pharmaceuticals, and IT. The value of UFuture’s assets is estimated at $500 million, and the total capitalization of the businesses in which the company has invested is up to $1 billion.
The National anti-corruption bureau of Ukraine (NABU) conducted a search in the apartment of the founder of the holding UFuture Vasily Khmelnitsky, the businessman himself said in the social network “Facebook”.
“Already in the office found out that I have “guests” from the NABU at home. Days of exemplary searches after nights of rocket attacks for Ukrainian businessmen have become a tradition. Unfortunately. This visit of law enforcement agencies to me concerns a case that has been under investigation for more than four years, and all these years I am in Kyiv, I am not hiding from anyone, and investigative experiments and interrogations have already been conducted more than once,” Khmelnitsky wrote.
The businessman specified that the case concerns a plot of land, which he and his partner bought at an open auction for the construction of a new modern school. Paid the full price (18.9 million UAH), received the rights of the owner.
“For us, 100% (it – IF) is a social project, not a business. It is access to quality school education that paves the way for real transformations and reforms in Ukraine in the long term. In the short term – Kiev through private investment gets the necessary infrastructure for the comfortable life of citizens, and the inhabitants of the residential complex – an additional advantage, “- wrote Khmelnitsky.
At the same time, the businessman stressed that the legality of the purchase of the land plot at the auction and the conclusion of the sale agreement is confirmed by the court.
“But the NABU believes that the price is too low”, – added Khmelnitsky.
According to him, in accordance with the urban planning documentation at this address can not be placed commercial or residential real estate – this explains the price of the contract.
As clarified to the agency “Interfax-Ukraine” in the press service of Khmelnitsky, in July 2018 state enterprise “MIA “Inform-Resources” held an open auction for the sale of real estate belonging to him at Kiev, Military passage, 8. The sale price was determined by an independent appraiser engaged by the seller and agreed by the State Property Fund of Ukraine. The plot was purchased by the company from the group – “Persestroy” LLC – for the construction of the second building of the innovative educational project of Novopechersk school.
“The legality of the purchase and the contract of sale was confirmed by the court. Yes, the tax service tried to invalidate the contract of sale, but the Commercial Court of Kyiv dismissed the claim. The decision was upheld by the court of appeal and is still in force. The Supreme Court refused to open proceedings on the tax appeal. NABU participated in the trial as a third party on the side of the plaintiff,” the press service of Khmelnytskyy reported.
It added that to implement the project of expanding the school, in addition to the acquisition of real estate, resources have already been spent on the development of several business models, the creation of a separate project team. Additionally hired teachers and methodologists, conducted an audit of the school, developed pre-project documentation.
“In addition, the management has taken steps to obtain a loan from the Black Sea Trade and Development Bank,” the press service noted.
The company added that information became known from open sources that the funds paid by Persevstroy LLC for the real estate had been embezzled, but the bona fide buyer had nothing to do with these actions.
As Khmelnitsky notes, it is necessary to stop the mass practice of “mask show” and intimidation of business in conditions of war. “All remaining entrepreneurs in the country, believe me, are 100% patriotic and ready for a civilized dialogue. In the last few months alone I have heard about dozens of such cases with show off searches of respected businessmen. Both the Ukrainian society and foreign investors are observing this negative trend. There is a sincere hope that the authorities are listening to the voice of business because it is only possible to defeat the external enemy and develop Ukraine’s economy by joining forces,” he believes.
Khmelnitsky assured that he is not going anywhere and is ready to answer all questions.
The holding company UFuture intends to invest $20 million in the creation of industrial parks in Lviv, Vinnitsa and Bucha, UFuture founder Vasily Khmelnitsky said in an exclusive interview with Interfax-Ukraine.
“I am considering plots for industrial parks, meeting with mayors. In Lvov and Vinnytsia, plots of 15 hectares, in Bucha – 20 hectares. In total (estimated investment) may be $ 20 million,” Khmelnitsky said.
In his opinion, these starting areas are too compact.
“Why is this not enough? What is 15 hectares? This is approximately 8-10 factories. And when you have built 10 factories and everything is fine there, then every year the place becomes even more attractive. An investor comes there who is satisfied with security and benefits, wants to build plant, and you already have nothing. Therefore, industrial parks need to be produced on areas of 100-200 hectares, but, unfortunately, there are not very many such sites, “Khmelnitsky said.
Regarding the sources of capital in the conditions of war, he said that he was counting on his own and credit resources.
“Today, almost nothing works for me, but I still have something, because I’m a rather big businessman. I met with a bank, which also has a difficult situation, we agreed that I would pay 50% on loans. “I’ll take some more loans from the bank. There are programs of 5, 10, 7%, this is set for economic growth, I think we need to give some soft loans,” Khmelnytsky said.
The full text of the interview with Vasily Khmelnytsky is published on the main page of the website of the Interfax-Ukraine agency
Ukrainian collaborates to continue cooperation and invest in larger projects
Kyiv, January 17, 2022. – Investment company InSoft Partners and holding company UFuture announce the sale of their joint outsourcing business ITernal Group to an international company headquartered in Aliso Viejo, USA, UST. Deal negotiations lasted from September 2021 to January 2022.
ITernal Group, a joint project of InSoft Partners and UFuture, was launched in 2018. Within 1.5 years, Lenal and Rademade software development businesses from Kyiv, as well as service department of Rozdoum company from Kharkiv, were acquired. Over the next six months, they were merged into a single entity, ITernal Group.
The new owner of ITernal Group, international company UST, has been working in the software development market for over 22 years. The acquisition of ITernal will allow UST to expand its Eastern European presence: the company did not have an office in Ukraine before.
As part of the business reformatting, InSoft Partners also withdrew from the educational project ucode IT academy in favor of its strategic partner UFuture. The companies have been developing ucode IT academy since 2018. During this time, they created a unique software product for students training and several joint educational programs with Ubisoft, CISCO, Ajax Systems, Squad and others.
UFuture will continue to develop ucode IT academy as an educational platform within its own social investment projects to develop Ukraine’s innovation potential. Now ucode IT academy works at UNIT.City innovation park in Kyiv.
“With ITernal Group creation we tested the idea of several small IT companies merging for reducing money spending and sustainable scaling of business. We deliberately went into small businesses and merged them not consistently, but simultaneously to test our business skills within small companies. Merging small companies into a large entity and its strengthening due to the reputation of majority shareholders has helped the ITernal Group to start cooperation with high-level clients. Successful completion of the business cycle (development of an idea – several companies buying – merging them into one entity – selling to a large strategist) confirmed our idea. Together with UFuture, we plan to use this model in larger projects,” said InSoft Partners founder Vitaly Gorovoy.
“Our partnership with InSoft Partners is just beginning. The sale of ITernal Group was, firstly, highly profitable, secondly, showed us scale prospects. I am glad that we have attracted a great international company UST to Ukraine. This is not only an international investment in the development of the project, but also new experience, knowledge and opportunities for talented Ukrainian teams,” said Vasyl Khmelnytsky, founder of the UFuture holding company.
Additional information
UFuture is a holding company of Ukrainian entrepreneur Vasyl Khmelnytsky that integrates his business and impact-investment projects.
The company has a diversified portfolio of assets in the fields of real estate, infrastructure, industry, renewable energy, pharmaceuticals, and IT. Currently, UFuture’s assets are estimated at $500 million, and the total capitalization of the businesses it invested in is up to $1 billion.
InSoft Partners is an investment company that buys stakes in IT service companies and helps them grow. Specialization: IT business value increasing, scaling, M&A. Core Value, Cloudfresh are among of their completed projects.
UST, for more than 22 years, has worked side by side with the world’s best companies to make a real impact through transformation. Powered by technology, inspired by people, and led by our purpose, we partner with our clients from design to operation. Through our nimble approach, we identify their core challenges, and craft disruptive solutions that bring their vision to life. With deep domain expertise and a future-proof philosophy, we embed innovation and agility into our clients’ organizations – delivering measurable value and lasting change across industries, and around the world. Together, with over 28,000 employees in 28 countries, we build for boundless impact – touching billions of lives in the process.
Development company UDP, part of the UFuture investment group belonged to businessman Vasyl Khmelnytsky, plans to launch phase one of the innovative LvivTech.City park with an area of 18,000 square meters in September 2021, Vice-President of UDP Vitaliy Melnyk has said.
“As for LvivTech.City, in September of this year, we plan to launch phase one – about 18,000 square meters – of the business campus, after which we will begin to build the residential part,” the press service of UFuture said, quoting Melnyk.
According to him, the area of the park is 5 hectares, the planned area of real estate is 110,000 square meters. The Innovation Park has already signed a memorandum of partnership with IWG, which operates the Regus and Spaces coworking spaces.
UDP also plans to disclose plans for the development of an innovation park in Kharkiv in the near future, Melnyk added.
“UNIT.City Kharkiv is located on 9 hectares and in the future it will have about 250,000 square meters of space. In Kharkiv, we have implemented development phase one through the reconstruction of the former exhibition center. More than 3,000 square meters of real estate were put into operation, where educational and office premises are concentrated. In the near future we will announce plans on the further development of the Kharkiv park,” he said.
Melnyk also said that today on the territory of Kyiv’s Unit.City, more than 100,000 square meters of office and residential premises are being implemented, the main square (Main Plaza), designed by the architect Hiroki Matsuura, is preparing for the opening.
As reported, LvivTech.City will be located on the territory of the industrial zone of the former Lvivprylad plant. It is planned that the total area of the office part will be more than 40,000 square meters. The park will be equipped with parking lots, a green area and recreation areas. In addition, the project will be implemented according to LEED energy and environmental design standards.
The completion of phase one of the LvivTech.City innovation park was previously scheduled for the second half of 2018, later postponed to the end of 2019.
In addition, UFuture together with National Technical University “Kharkiv Polytechnic Institute” has implemented the Innovations Campus educational space in Kharkiv worth more than UAH 60 million.
Biopharma, which is one of the ten largest Ukrainian manufacturers of the pharmaceutical industry and specializes in human blood plasma drugs, has submitted to the laboratories of the Public Health Center of the Ministry of Health of Ukraine equipment that will allow the presence and absence of samples to be determined quickly and by modern methods agents of coronavirus disease. This decision, in conjunction with entrepreneur Vasyl Khmelnytsky’s UFuture holding company, is a continuation of a series of social initiatives undertaken by Ukrainian entrepreneurs amid a coronavirus pandemic.
“The Center will become the main reference site that will monitor the correctness of diagnostics throughout Ukraine. In other words, samples from laboratories will be sent here to confirm or refute the diagnosis. Without the transferred equipment, effective control of coronavirus disease in Ukraine would be defective,” Kostiantyn Yefymenko, President of Biopharma, reported.
The first unit is the Nuclear Acid Extraction Equipment from Thermo Fisher Scitific with consumables for 20,000 samples. The equipment helps prepare samples for analysis. The second unit is the equipment of Bio-Rad CFX 96 for molecular genetic analysis by PCR for the presence of a DNA virus and a system test for the detection of COVID-19.
The total cost of the equipment exceeds six million UAH, its installation and startup is performed by the company “ALT Ukraine LTD”. The equipment allows to process up to 100 samples in 60 minutes and in total about 2 thousand analyzes per day.
“Business should do everything in its power to stop the spread of the coronavirus and bring Ukraine back to normal. First of all, we need quality and timely diagnostics. already hundreds of millions of hryvnias and assistance continues,” Vasyl Khmelnytsky, founder of UFuture, said.
In addition, UFuture purchased two lung ventilation devices and all materials for their operation for the amount of 1 million 700 thousand UAH to one of the hospitals in Kyiv, and Biopharma — equipment for Bila Tserkva city hospital №3 (reference infectious hospital for the Kyiv region) with an amount of five million UAH.
Among them:
• two AR-203 artificial ventilation apparatus;
• AS-200 biochemical automatic analyzer;
• 3-Part DiffH 18 light hematology analyzer;
• EasyStat blood gas and electrolyte analyzer;
• BM1600 patient monitor with BM200 module;
• Laura Smart urine analyzer;
• two microscopes Micromed Fusion FS-7620.
The total cost of assistance from the holding companies is more than 12 million UAH. Also, masks and systems for rapid tests for the hospitals of Bila Tserkva will be purchased soon.
ADDITIONAL INFORMATION
UFuture is a holding company of Ukrainian entrepreneur Vasyl Khmelnytsky that integrates his business and impact-investment projects. The company has a diversified portfolio of assets in the fields of real estate, infrastructure, industry, renewable energy, pharmaceuticals, and IT. Currently, UFuture’s assets are estimated at $550 million, and the total capitalization of the businesses it invested in is more than $1 billion.
Biopharma is a Ukrainian immunobiological pharmaceutical company that which specializes in the drugs of human blood plasma. The number of employees – more than 300 people. The company exports drugs to 36 countries. In 2019, the company opened in Bila Tserkva a “built from scratch” manufacturing facility, investing about $75 million. Its the only plant of its kind in Eastern Europe.
