Business news from Ukraine


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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GlobalLogic Ukraine, an IT company, the largest software developer in Ukraine, will open the second office in Lviv on October 12, 2018.
This was announced by the head of the company’s office in Lviv, GlobalLogic Vice President for Engineering Denys Balatsko on the sidelines of the Lviv IT Arena 2018 conference.
“This is a separate building, which was built according to our wishes and allocated completely to our company. Today, about 300 of our engineers have already moved there, but the official opening will take place on October 12,” he said.
According to Balatsko, departments for the development of medical software and embedded solutions will be located in this office.
In the opinion of the company, the question of availability of office premises equipped with serious IT infrastructure is acute in Lviv.
“Now we see a very high demand for office space and companies are often looking for a place where they could find room. There is not enough quality office space,” the expert said.
GlobalLogic Ukraine is the largest software developer in Ukraine. It has offices in Kyiv, Kharkiv, Lviv, and Mykolaiv.

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KAN LLC, part of KAN Development Group (both based in Kyiv), saw a 10.5-fold rise in net profit in Q2 2018, to UAH 24.8 million. According to an annual report of the company posted in the information disclosure system of the National Commission for Securities and the Stock Market, net revenue in H1 2018 grew 1.6-fold, to UAH 79.4 million, and uncovered loss fell by 6%, to UAH 385.9 million.
Noncurrent liabilities fell by 1.6%, to UAH 579.2 million, and current liabilities decreased 32%, to UAH 277.9 million, total bills receivable narrowed by 42.4%, to UAH 39.9 million.
KAN Development LLC was established in 2001. As of July 2018, the participant of the limited liability company was Deverte Holding GmbH (Austria, 100%).

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Developers returned to active construction of suspended commercial real estate projects in Kyiv in 2018, Deputy Head of the Strategic Consulting Department of UTG Kostiantyn Oliynyk has said. “A development boom occurred on the commercial real estate market in late 2017 through early 2018. Numerous projects have resumed development activities and are planning to open, new concepts will be developed for some facilities. For example, Podol Mall, which was initially designed as a shopping mall, will be a three-story shopping mall with three floors of office premises,” Oliynyk said during a press conference on the results of the Ukrainian real estate market in H1.
He added that shopping malls Retroville, MegaMarket Nyvky, Blockbuster Mall, Podol Mall, River Mall will be commissioned in Kyiv in the next year. A range of other shopping facilities are at a high level of construction readiness. In particular Smart Plaza Obolon, Oasis (at Heroiv Dnipra metro station), Good Life are under construction, while preparations for the construction of the second line of Auchan Rive Gauche are conducted. The shopping mall will be commissioned in Q2, 2019.
“There are several suspended facilities which might resume at any time – Lukianivka, Respublika, and Happy Mall,” the expert said and added that Kyiv-based developers are planning to build five or six more shopping malls, but have not made public information about them.
Oliynyk also said that around 400,000 square meters of commercial real estate will be commissioned in Kyiv in the next one or two year.
The expert added that the commissioning of new facilities could result into outflow of tenants from older facilities constructed in 2000 through 2010.
According to UTG, goods turnover in retail trade increased by 18% in 2017, but was 14% down from 2016 (taking into account inflation).
UTG also reported that average daily attendance of shopping malls at the beginning of May 2018 was 647 people per 1,000 square meters (against 701 people per 1,000 square meters in May 2017). Attendance of district shopping malls did not change, while in regions it was 14% down in the first months of 2018 year-on-year. According to UTG, rent rates at shopping malls in Kyiv are $15-30 for restaurants and cafes, $4-15 for cinemas, $1.5-20 for large shops (600-1,500 square meters in area), up to $70 for fashion galleries, up to $12 for electronics stores, and $1.5-15 for food retailers.