Business news from Ukraine

NEW OFFER OF WAREHOUSES IN KYIV REGION IN 2020-2021 EXPECTED TO REACH 84,000 SQ M

The volume of new supply in the warehouse and logistics real estate market in Kyiv region by the end of 2021 is expected to reach 84,000 square meters, while the initiation of new projects can be expected in case of favorable macroeconomic conditions, given the increase in rental rates. “According to developers, in 2020-2021 an additional 84,000 square meters is to be commissioned in the market, among them the second stage of the Amtel warehouse complex (52,000 square meters, Amtel-Properties developer, the location is Boyarka, T-012), Mirage-3 warehouse complex (9,000 square meters, Mirage developer, the location is Hostomel, M-07/E-373), as well as SAN Factory 2 Storage Area Network (23,000 square meters, the developer is SkyLine Development, the location is Kyiv). At the same time, despite the short term for the implementation of warehouse construction projects, the initiation of new projects can be expected in case of favorable macroeconomic conditions vii taking into account the growth in rental rates,” CBRE Ukraine forecasts in a press release.
According to the report, by the end of 2019 Unilogic Park III is expected to be commissioned (22,000 square meters, the developer is MERX Group, the location is Brovary, M-01/E-95). According to the company’s experts, this will not have a significant impact on balancing the market with a new offer.
“In connection with the improvement of the economic situation, we expect a moderate growth in the warehouse real estate market. Thus, the growth of income and the value of existing warehouses is forecasted due to the limited supply of new products over the next 18 months and, as a result, growth in rental rates, given the further development of the economy and retail. As a result of outsourcing logistics and storage processes, as well as due to the growth of e-commerce, wholesale and retail companies, as well as logistics firms remain key players in the market,” the head of the department of warehouse and logistics real estate at CBRE Ukraine, Natalia Sokyrko, said.

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LLENTAB GROUP FROM SWEDEN BUILDS WAREHOUSE IN KYIV REGION

Llentab Group of Companies (Sweden), designer and manufacturer of multifunctional steel buildings, has completed building of the warehouse premises with a total area of 5,500 square meters in town of Baryshivka in Kyiv region. As the company reported on its website, the premises was built for the Dutch HatchTech incubation equipment producer. The warehouse is equipped with gates and reloading platforms with dock shelters.
The Llentab Group designs, manufactures and markets multifunctional steel buildings for a wide range of industries and purposes.
The parent company Llentab AB is headquartered in Kungshamn, Sweden. Llentab is currently present in seven European countries. LLENTAB operates in Sweden, Norway, Germany, Poland, the Czech Republic, Slovakia and Ukraine. Kyiv-based Llentab LLC was created in 2006.

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KYIV CITY AND KYIV REGION LEADERS IN HOUSING COMMISSIONING IN UKRAINE

Housing commissioning in Ukraine in January-March 2019 increased 32.3% compared with the same period in 2018, to 2.453 million square meters. According to the report, 1.394 million square meters of housing were commissioned in cities in the first quarter (56.8% of the total volume), while 1.06 million square meters in rural areas. At the same time, 61.7% of the total housing was commissioned in single-family houses, 38.3% in houses with two or more apartments.
In general, during the reporting period some 26,098 apartments were commissioned, including 16,900 apartments in cities and 9,200 apartments in villages.
The average area of apartments was 94 square meters, while the average area of apartments in single-family houses was 154.1 square meters, in houses with several apartments – some 57.8 square meters.
Some 51.7% of the total volume of housing was commissioned in Kyiv city and region, as well as in Lviv, Ivano-Frankivsk and Chernivtsi regions, in particular, 174,300 square meters (7.1%) in Kyiv.

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NEW CERAMIC TILE PLANT IS LAUNCHED IN KYIV REGION

The Epicenter K Group (Kyiv) has invested UAH 3 billion in construction of the largest ceramic tile plant in Kalynivka (Kyiv region) and plans to launch the first phase in the middle of 2019, the founder of Epicenter K LLC Oleksandr Hereha said at a briefing. “We are developing our [white clay] quarry. We will fully use Ukrainian raw materials in the production of tiles… We also signed a second contract for the supply of equipment in Kalush, Lviv region, where we will build a second [ceramic tiles] plant,” he said.
According to Hereha, the SACMI international group acted as the anchor partner for the supply of equipment to the plant, which, in connection with the implementation of this project, decided to open an official representative office and service center in Ukraine.
The second phase of construction is scheduled for 2020.
“The production capacity of the first and second phases of the plant will amount to 6 million square meters of tiles per year, with the possibility of expanding it to 15 million square meters,” Deputy Director of Epicenter K for customs issues Volodymyr Pidrushniak said. The facility is located on a land parcel of 20 hectares near the Kalynivka customs terminal and the warehouse complex of the Epicenter group. According to the press release of the group, the total area of the plant is 70,000 square meters, and its annual production capacity is 12 million square meters tiles. Some 300 people will be hired.
Epicenter K was created in 2003. The first construction hypermarket of the company was opened in Kyiv in December of the same year.

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JAPANESE COMPANY LAUNCHES SILO IN KYIV REGION, INVESTMENTS TOTALES UAH 60 MLN

Kivshovavta Agro LLC (Kyiv region) belonged to Japan’s Kivshovavta is launching a silo with a storage capacity of 16,000 tonnes in the village of Kivshovata, Kyiv region, the company’s press service has reported. The press service said that with the launch of the silo the storage facilities of the company will be around 30,000 tonnes. Investment in the first and second stages of the silo totaled some UAH 60 million, and over UAH 100 million were sent to buy grain from other producers.
“The first stage of the silo was completed before 2017. In the past year it was reconstructed and expanded,” the company said.
Kivshovavta Agro seeks to boost land bank four times in coming five years, to 10,000 ha and build one more silo. Kivshovavta Agro LLC was founded in 2009. Its owner – SDGs Corporation – bought the company in Q4 2016. Kivshovavta Agro is the only enterprise of SDGs Corporation in Ukraine. The company plants wheat, sunflower, corn, soybeans. Its land bank is 2,500 ha.

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CITY OF KYIV WITH KYIV REGION, DNIPROPETROVSK, KHARKIV AND ODESA AMOUNT TO 51% OF TOTAL TRADE TURNOVER IN UKRAINE

Ukraine’s retail trade in January-June 2018 increased by 6.2%.
Four regions (City of Kyiv with Kyiv region, Dnipropetrovsk region, Kharkiv region and Odesa region) amount to 51% of total trade turnover.
Luhansk and Ternopil are on the last places.
In June 2018 alone, retail trade decreased by 0.8% compared to May 2018, but it grew by 6.3% compared to June 2017.

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