Business news from Ukraine

UKRAINIAN NAVIGATION TECHNOLOGY DEVELOPER RAISES $2 MLN IN INVESTMENTS

Ukrainian company Augmented Pixels, which is based in Palo Alto (California, the United States) and develops products in the fields of navigation, digital mapping and virtual/augmented reality, has raised $2 million in investments.
“Augmented Pixels, Inc. closed a $2M funding round from current and new investors and completed the development of indoor navigation, earth-scale 3D mapping and cloud localization technologies,” CEO and Founder of Augmented Pixels Vitaliy Goncharuk has said.
Augmented Pixels will use the funds to continue its innovative R&D efforts while also expanding with an executive team based in the United States.
In general, the company has raised $7 million since 2015.
As reported, ICU invested in Augmented Pixels in July 2020. The amount of the investment was not disclosed.

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U.S. ROCKET DEVELOPER FIREFLY AEROSPACE PLANS TO RAISE $350 MLN FOR CREATION OF FIREFLY BETA MEDIUM-CLASS LAUNCHER

The U.S. rocket and space technology developer Firefly Aerospace Inc., owned by Ukrainian businessman Maksym Polyakov plans to raise $350 million to scale up production and work on a medium-class launch vehicle – Firefly Beta.
Firefly Aerospace CEO Tom Markusic spoke about these plans during the IPO Edge webinar, the company’s press service said on Thursday.
“In the next five years we want to take Firefly from a $1 billion with Alpha to being on the order of a $10 billion company with a set of different launch vehicles,” Markusic said.
The company said $125 million of the funding would go toward production enhancements, such as facilities and tooling needed to ramp up launch vehicle production. The other $225 million would support growth initiatives, in particular a medium-class vehicle capable of placing 10 tonnes into orbit, about ten times more than the capacity of Alpha.
“Our development phase was $200 million, and that was funded by Maksym Polyakov and Noosphere Venture Partners […] Now we are considering expanding the list of investors in order to raise an additional $350 million, without impeding our ability or fundamentally changing our culture as a nimble, fast-moving space development company,” Markusic said.
He also confirmed plans for Alpha’s inaugural launch soon.
As reported, Firefly Aerospace has already performed checkouts of the Alpha launch vehicle.
As reported, Firefly Aerospace Inc. signed a Launch Services Agreement (LSA) with equipment and avionics company Adaptive Launch Solutions (ALS), which includes four launches of the Alpha rocket starting in 2021.
Ukraine’s Space Electric Thruster Systems (SETS) will provide its SPS-25 propulsion system for the inaugural launch of the Alpha rocket made by a rocket and space technology developer Firefly Aerospace Inc.

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DEVELOPER FROM AZERBAIJAN INTENDS TO INVEST $7 MLN IN HOUSING COMPLEX IN UKRAINE

Caspian Service developer (Azerbaijan) intends to invest $7 million in its first own development project in Ukraine, the BASA City residential complex of the comfort+ class in the village of Khodosivka (Kyiv-Sviatoshynsky district, Kyiv region). “BASA City is the first full-scale project of Caspian Service in Ukraine as a developer. Despite temporary difficulties due to political processes, the Ukrainian housing market is very promising. The pilot project is being implemented in the comfort+ class, since, according to our estimates, today this is the most demanded and least risky segment in residential construction,” Chingiz Kishiyev, the CEO of Caspian Service in Ukraine, told Interfax-Ukraine.
According to him, the project includes nine five- to seven-storey houses, designed for 504 apartments. The land plot is located on the lake, not far from the Manufactura outlet village. Its area is 3.5 hectares, the total construction area is 35,000 square meters. The project will be implemented in two phases. The commissioning of the first of them is planned for the first quarter of 2021.
The expert noted the plan for the long term is to enter the segment of business and premium class housing in Ukraine.
“We also intend to develop business and premium class housing, as the company has gained successful experience in implementing such projects in Azerbaijan, Kazakhstan, and other CIS countries: we have built dozens of high-quality projects,” he stressed.
Caspian Service was founded in 2001. Its portfolio includes 71 projects in Azerbaijan, six in Kazakhstan, two in Georgia, one in Poland, eight in Ukraine. Since its foundation, the company has built and commissioned about 1.5 million square meters of facilities.

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ARRICANO DEVELOPER SEES NET PROFIT FALL BY 38%, REVENUE RISE BY 17% IN H1, 2019

Arricano Real Estate Plc (Cyprus), the managing company and developer of a number of shopping and entertainment centers in Ukraine, received $8.56 million in net profit in the first half of 2019, which is 38% less than in the first half of 2018.
According to the company’s report, posted on the London Stock Exchange’s website, its revenue for January-June increased by 17%, to $17.3 million, while total profit decreased by 19.8%, to $17.74 million.
The fair value of the company’s portfolio increased by 9%, to $281.3 million.
According to Arricano, the growth of this indicator is associated with an increase in the value of the operating real estate portfolio by $15.6 million, as well as projects under development by $7.2 million.
Arricano’s net asset value in the first half of the year, according to its report, increased from $94 million to $111.8 million.
In addition, the developer notes an increase in the occupancy of its shopping centers from 99.7% to 99.9% and 82 new leasing contracts compared to 68 in the first half of 2018.
As reported, Arricano in 2018 received $38.1 million in net profit, which is 47.6% more than in 2017. Its revenue increased by 14.4% and amounted to $31.52 million.

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ARRICANO DEVELOPER TO SELL TWO SHOPPING MALLS IN KRYVYI RIH AND ZAPORIZHIA

Arricano Real Estate Plc (Cyprus), managing company and developer of shopping and entertainment malls in Ukraine, is going to sell two its properties: Sun Gallery Mall in Kryvyi Rih (Dnipropetrovsk region) and City Mall in Zaporizhia.
“Arricano is pleased to announce it has entered into negotiations to sell two of its properties in its property portfolio, Sun Gallery (located in Kryvyi Rih, Ukraine) and City Mall (located in Zaporizhzhia, Ukraine),” reads an announcement of the company posted on London Stock Exchange (LSE) on July 31.
The developer said it has entered into non-binding heads of terms with Dragon Capital Investments Limited and with other parties in relation to such sale.
“A sale of the properties is a part of Arricano Real Estate PLC global strategy, due to which received funds will be meant for the development of portfolio and strengthening of the company’s positions,” Arricano CEO Mykhailo Merkulov told Interfax-Ukraine.
According to the developer, Sun Gallery is currently held in Arricano’s subsidiary, PrJSC Ukrpangroup, a Ukrainian subsidiary of Museo Holdings Limited and City Mall is currently held in in Arricano’s subsidiary, Pryzma Alfa LLC, aUkrainian subsidiary of Sunloop Co Limited.
Arricano is one of the leading real estate developers of shopping centres in Ukraine with European investments. It is listed on the AIM Market of the London Stock Exchange since 2013. Today Arricano Group owns and operates five completed shopping centers and 49,9% shareholding in Sky Mall and land for further three sites currently under development.

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SEVEN HILLS DEVELOPER PLANS TO START BUILDING SECOND RESIDENTIAL COMPLEX IN KYIV

Exko Plus LLC (Seven Hills developer, Kyiv) of businessman of Israeli origin Beny Steinmetz plans to start implementing a project to build a business class residential complex located at 39/2 Henri Barbusse Street in the Pechersky district of Kyiv. “We continue believing in business class – the segment where we work. We see and feel that it is stable. Demand remains. We will continue working in this residential housing segment,” Seven Hills CEO Arie Schwartz said at the RED PM DAY 2018 conference held last week in Kyiv.
He told Interfax-Ukraine that the company’s primary task is to complete the construction of the last stage of the Park Avenue residential complex, scheduled for the first quarter of 2019, and then focus on the new project.
As expected, the new complex will be designed for 670 high-end apartments. The construction of this residential complex was announced back in 2008. Then the developer several times postponed the start of its implementation.
According to Schwartz, the company’s portfolio contains five sites in Kyiv for development, one of them is Park Avenue residential complex (located at 58A, Holosiyivsky Avenue) and one in the pipeline – in the Pechersky district (located at 39/2, Henri Barbusse Street).
“We thought that it will take about five years to build Park Avenue. Today it is 11 years, and we continue working on our other projects,” Schwartz said.
As reported, Seven Hills in 2009 announced plans to start implementing three construction projects in Kyiv city and region, in particular, the Podol A class office center and a premium-class residential complex in Kyiv and the Airport City office and warehouse complex in Kyiv region.
Exko Plus LLC was established in 2004, its main activity is the construction of residential and nonresidential buildings.
According to the unified public register, participants of LLC are Global Space Management Limited (90%) and Respublika investment fund (10%). The ultimate beneficiary is Steinmetz.

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