Business news from Ukraine

EPICENTER RECEIVES EUR 5.3 MLN LOAN FROM AUSTRIAN BANK

The Epicenter K company (Kyiv), which is developing a network of shopping centers of the same name and agricultural direction in Ukraine, has received a loan in the Austrian Raiffeisen Bank International AG in the amount of EUR 5.3 million for the development of e-commerce, in particular, the opening of a fulfillment center, the press service of the company said.
“The Austrian bank Raiffeisen Bank International AG will finance the purchase of equipment for the Epicenter K fulfillment center from the Dutch manufacturer Vanderlande Industries B.V.,” the statement reads.
The opening of an innovative fulfillment center will provide a high level of service to online buyers, according to the company.
According to it, the credit line in the amount of EUR 5.309 million is open for five years, the interest rate is set at the six-month rate of EURIBOR plus margin. Insurance coverage is provided by the Dutch government guarantee issued by Atradius Dutch State Business N.V.
The authorized capital of Epicenter K LLC is UAH 158.6 million.
Epicenter K LLC was established in 2003. According to the unified public register of legal entities and private entrepreneurs, the participants in Epicenter K LLC are Oleksandr Hereha (51.3%), Halyna Hereha (47.9%) and Tetiana Surzhyk (0.73%).

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EPICENTER K PLANS TO BOOST LAND BANK IN UKRAINE TO 160,000 HA

EPICENTER KThe Epicenter K Group, developing the agricultural business since 2016, after the acquisition of Khmelnytsk-Agro from Svarog West Group will boost its total land bank by 40,000 ha, to 160,000 ha. According to the company’s press release issued on Wednesday, the process is currently underway. Khmelnytsk-Agro develops the crop and livestock segments in Khmelnytsky region. It consists of a granary and a seed plant.
Epicenter K plans to create two more clusters in its structure, on the lands of which will be grown both traditional crops – wheat, sunflower, corn and rapeseed, as well as niche crops – bare pumpkin, and organic crops and seeds for irrigation will also be planted.
Epicenter K seeks to renegotiate land lease contracts with shareholders of Khmelnytsk-Agro LLC under the best conditions, after which they will receive social guarantees from Epicenter K.
As reported, the Antimonopoly Committee of Ukraine granted permission to acquire the company on February 6.

EPICENTER K WANTS TO OPEN 15 NEW FURNITURE CENTERS IN 2020

Epicenter K LLC (Kyiv), which is developing a network of eponymous shopping centers in Ukraine, plans to open 15 new Furniture Centers (Tsentr Mebliv) in its shopping centers in 2020, begin entering external sites and strengthen online sales. “The goal of the company is to increase its stake to 40% by the end of 2020. These plans are related to the new concept for the development of Furniture Centers. Thus, the Epicenter furniture business will significantly expand its assortment, improve client services, and will focus on turnkey solutions, in particular customers will be offered design interiors in different styles and budgets,” the company’s press service said.
According to the report, in 2019 the share of Furniture Centers in the Ukrainian market grew to 25%. During this time, ten new concept stores were opened in the Epicenter chain.
“In the new concept, much attention will be paid to inexpensive functional furniture of modern design that are interesting to young people,” Oleksandr Lukyanchenko, the director of the Tsentr Mebliv direction, said.
According to him, the company also relies on online sales.
“I’m sure that in the future online will be another growth point for us, because there we can present a much wider assortment, not limited by the length of the shelf in an offline store,” he said.
In particular, in 2019, the share of online furniture sales in the Epicenter network was 10%, the largest demand in online sales was recorded for kitchens.

EPICENTER K NEGOTIATING EUR 100 MLN LOAN WITH EIB TO EXPAND AGRICULTURAL EQUIPMENT FLEET

Epicenter K LLC (Kyiv) is negotiating the financing of a project to expand grain storage infrastructure, purchase of agricultural machinery and grain hoppers for the amount of over EUR 100 million with the European Investment Bank (EIB).
“The Epicenter K company is in the negotiation process with the European Investment Bank regarding obtaining a loan of more than EUR 100 million, but the company has not yet made a final decision on obtaining it,” the company said.
As reported, the EIB board of director on November 14, 2019 approved a project to provide financing for the expansion of grain storage infrastructure, the acquisition of new agricultural machinery and equipment, as well as railway cars for grain transportation.
The bank expects that, thanks to the project, 1,100 additional permanent jobs will be created for new operations, 300 workers will be hired for the construction period and 15-20 local subcontracting small and medium-sized enterprises will be involved.
The EIB also indicates that this operation is covered by the political risk guarantee of the European Union for EIB loans outside the EU.
Epicenter K has been developing the agricultural business since 2016. The agricultural division of the Epicenter K group of companies cultivates over 120,000 hectares of land in Vinnytsia, Khmelnytsky, Ternopil, Cherkasy, and Kyiv regions. The group also includes 20 livestock farms and six silos. Epicenter K plans to reach one million tonnes of grain storage capacity.

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EPICENTER K OPENS SHOPPING CENTER IN TERNOPIL

Epicenter K LLC (Kyiv), developing the chain of eponymous shopping centers in Ukraine, opens a shopping center in Ternopil, which will become the largest facility of the chain in the region, after its reconstruction and completion. The retailer’s press service reported on Friday that the area of the shopping center built in 2008, after the reconstruction, increased 1.5 times, to 25,000 square meters.
“Thus, the company continues the program of reconstruction of shopping centers in the chain, which began in 2015. For four years, 13 facilities have already been reformatted into innovative shopping centers. By the end of the year, plans are to open three more new and reformatted shopping centers,” the press service said.
According to the press service, in the facility, among other things, an Intersport multi-brand sports goods chain store will be opened on an area of 605 square meters. Among the largest departments are “Garden” (3,600 square meters), “Building materials” with outdoor areas (2,700 square meters), “Wood products” (2,000 square meters).
In addition to renovations of departments, improved and internal navigation, many nuances were taken into account for the convenience and comfort of customers. The facility also includes a goods distribution center of the 27.ua online store and a parking area for 650 cars.
Epicenter K LLC was established in 2003 and opened the first hypermarket in Kyiv in December of the same year.

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UKRAINIAN EPICENTER K INVESTS UAH 3 BLN IN AGRICULTURE

The agricultural division of the Epicenter K Group has launched two new silos and expanded the capacities of two more silos in Vinnytsia and Khmelnytsky regions and the number of own silos grew from six to eight and their total storage capacities expanded to over 800,000 tonnes.
According to the group’s press release, two new silo complexes were launched in Vinnytsia region: Vendychany (Mohyliv-Podilsky district) with a storage capacity of 120,000 tonnes and Vapniarka (Tomashpil district) with a storage capacity of 200,000 tonnes.
In addition, the reconstruction of the Vinnytsia elevator was completed, as a result of which its storage capacity was increased to 168,000 tonnes, the capacity of the Zakupne silo complex (Khmelnytsky region) also increased by 60,000 tonnes – after reconstruction, the enterprise can dry and store 105,000 tonnes of grain.
The investments of Epicenter K in the development and reconstruction of the silo business amounted to about UAH 3 billion.
According to the group, in the current season the new and upgraded silos of the company plan to accept about 50,000 tonnes of grain from external depositors for refinement and storage.
The Epicenter K said that the construction of a new silo in Vinnytsia with a capacity of 208,000 tonnes recently began. Work on the completion of the third phase of the Zakupne silo complex with a capacity of 184,000 tonnes is underway, as well as the restructuring of two more enterprises – Pererobnyk in Kyiv region, which storage capacities will expand by 105,000 tonnes, and Nemyriv silo complex in Vinnytsia region, where grain storage volumes will increase by 104,000 tonnes.
After the implementation of all projects, the silo grain storage capacity until the end of the 2019/2020 agricultural year will expand to 1 million tonnes. The company plans by the end of the 2020/2021 agricultural year to increase the company’s grain storage capacity to 2 million tonnes.
The total cost of projects for the development and reconstruction of silo complexes is estimated at UAH 4.6 billion.

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