Business news from Ukraine

SECONDARY INVESTMENTS IN COMMERCIAL REAL ESTATE IN KYIV AND SUBURBS IN JAN-JUNE AMOUNTES $131 MLN

Secondary investments in commercial real estate in Kyiv and the suburbs in January-June 2019 amounted to $131 million, while at the end of 2018 this figure was $328 million, according to a study by Cushman & Wakefield consulting company. According to the company, the main areas of investment in the first half of the year were office and retail real estate.
For the nine months of 2019, secondary investments in office real estate in Kyiv and the suburbs increased by 6% compared to the same period in 2018, to $89 million. At the same time, investments in logistics real estate decreased by 58%, to $10 million.
According to the analysis, profitability rates of high-quality facilities in January-September slightly decreased (by 0.5 percentage points), but generally remained at the level of indicators for 2018. Thus, by the end of the third quarter, the indicator for offices was 11.5%, for warehouse facilities some 12.25%.
Cushman & Wakefield (formerly DTZ) was founded in New York in 1917. The company is a consultant in the field of commercial real estate with an annual income of $6 billion. Cushman & Wakefield operates in more than 70 countries, the number of employees is 45,000 people.
Prior to the global merger of Cushman & Wakefield and DTZ consulting companies in 2015, the Ukrainian office worked under the DTZ brand.

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KYIV AIRPORT EXPECTS RISE IN PASSENGER TRAFFIC IN 2020

Kyiv Zhuliany International Airport intends to serve 2.6 million passengers in 2019, which is more than 7% less than in 2018, Denys Kostrzhevsky, the head of the airport’s board of directors, has said. “I won’t say that we have a catastrophic decline in growth rates. Compared to last year, when we transported almost 2.8 million people, this year we expect to service 2.6 million passengers. That is, the decrease in passenger traffic will be about 8%. I even won’t call it a fall, it’s an adjustment. In 2018, Kyiv airport showed an explosive growth – we grew by 52% compared to 2017. This year there will be a drop in passenger traffic. This is not a catastrophic drop,” he said in an interview with Interfax-Ukraine.
At the same time, he noted that in 2020 passenger traffic growth is expected.
“The airline’s plans for scheduled flights are quite conservative and long-term. At present, we already know the airline’s plans for spring-summer navigation, until October 2020,” he added.
According to forecasts announced at the international conference Global Airport Development in Dublin (Ireland), in the medium term the growth rate of passenger traffic in the world will be 5-8% per year.
“In Ukraine, the market is underestimated and underdeveloped due to low purchasing power … We have been slowing down for a long time and now we must catch up with the world figures for the number of flying citizens per capita. All this is closely connected with state policy. If the economic and political situation in the country allow saying that business and the economy are developing steadily, household incomes are growing, respectively, and aviation growth will be large,” he said.

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KYIV SIKORSKY AIRPORT PLANS TO EXTEND RUNWAY, COST OF PROJECT IS UP TO EUR 100 MLN

Kyiv Sikorsky Airport (Zhulyany) is to extend its runway and improve the characteristics of landing approach systems, Denys Kostrzhevsky, head of the airport’s board of directors, has said. “Kyiv Airport has a runway whose length is 2,350 meters. It is located in the central part of the city. Accordingly, its landing approach systems allow aircraft to land and take off under certain weather conditions. To be able to service aircraft in any weather conditions and handle larger aircraft, Kyiv Airport needs to upgrade the category of the airfield,” he told Interfax-Ukraine in an interview.
Kostrzhevsky noted that a master plan for the reconstruction of the airfield had already been developed, it has five different options. Each of them foresees an extension of the runway by 550 meters, improvement of the characteristics of landing approach systems (lighting navigational aids and radio navigation equipment). The estimated cost of the project ranges from EUR 80 million to EUR 100 million.
“The city needs to solve two problems. The first is to allocate plots of land, the second is either to disburse or raise money. There are different ways to raise money: one may take a loan or call a concession tender. If the city decides on concession, then, of course, Master Avia, the airport operating company, will participate in this tender,” the top manager said.
If such a decision is not taken, there may be loans, he added. “Perhaps it will be financing from the municipal budget or there will be a lease with an investment obligation. We do not know this,” he said.
According to him, in particular, the airport asks to allocate 12 hectares of land at the ends of the runway. Currently, the documents are under approval.
“We are in dialogue with the authorities. How quickly the approval will be depends on Kyiv City State Administration and Kyiv City Council. They have been there for eight months. I hope we will get certain results soon,” Kostrzhevsky said.

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ONE MLN PASSENGERS USE EXPRESS TRAIN FROM KYIV TO BORYSPIL AIRPORT

About one million passengers used the services of the Kyiv Boryspil Express train from Kyiv to Boryspil International Airport (Kyiv) over the year, the press service of JSC Ukrzaliznytsia (Kyiv) has reported, with reference to head of the company Yevhen Kravtsov.
“I’m sure no one will argue now that the express train to Boryspil airport is needed. During its first year of operation, it made about 10,000 trips and transported almost one million passengers. And this is the indisputable evidence of success of this project,” Kravtsov said.
The report notes that a record number of passengers was transported in August and September 2019 with 98,200 and 107,600 people respectively. The most popular trains are No. 842 Kyiv-Boryspil at 17:50 and No. 845 Boryspil-Kyiv at 19:17.
According to the head of Ukrzaliznytsia, the company plans to further develop this project. Currently, the reconstruction of the Vydubychi station is nearing completion, where a stop platform for the express train will be built.
“Vydubychi station will turn into a transport hub that will combine bus transportation, railways, subway and air transport. In addition, a diesel train manufactured by Kriukov Car Building Works is expected for this route. And this is an additional 170 seats,” he said.
Over a day, express trains carry out 57 trips and carry 2,500 passengers.

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KYIV ZHULIANY INTERNATIONAL AIRPORT REDUCES PASSENGER TRAFFIC

Kyiv Zhuliany International Airport in January-November 2019 served 2.414 million passengers, which is 7.4% less than in January-November 2018. According to statistics released by the airport’s press service, the number of passengers served on international flights for the 11 months amounted to almost 2.358 million people, on domestic flights some 56,400 people. The number of flights in January-November 2019 amounted to 25,565 for arrival/departure, which is 8.6% less than in the same period in 2018, in particular, 21,532 international flights, and 4,033 domestic flights.
The most popular international destinations for the indicated period were Minsk (Belarus), Warsaw (Poland), Sharm el-Sheikh (Egypt), Rome (Italy), Vienna (Austria), Berlin, Frankfurt (both are Germany); internal Odesa, Zaporizhia, and Lviv.
In November 2019, the airport served 180,100 passengers, which is 1.35% less than in November 2018. The number of passengers served on international flights amounted to 177,500, on domestic flights some 2,600 people.
At the same time, the number of flights in November amounted to 2,029 for arrival/departure, which is 1.3% less than in the same period in 2018, of which 1,764 international and 265 domestic flights.

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FORTUNE-TELLING ON ST. ANDREW`S EVENING WILL BE ORGANIZED NEAR KYIV

On December, 7 and 8 Ancient Kyiv in the Principality of Kyivan Rus («Kyivan Rus Park») invites to join the thrilling St. Andrew’s evening and spend the weekend in the magical atmosphere of antiquity. Tasty dishes prepared on open fire, warm tavern, ancient fortune telling and rites, walks on a horseback, museums and expositions, and even more will be waiting for the guests in a real, live medieval city.
Ancient Kyiv opens at 10:00. The program starts at 13:30 and lasts till 18:00.
The ticket price: a full adult ticket – 190.00 UAH, for pensioners and students – 150.00 UAH; for schoolchildren – 80.00 UAH, for preschool children – for free.
Ancient Kyiv in the «Kyivan Rus Park» is situated in the vill. Kopachiv, Obukhiv district, Kyiv region. Route taxis leave from Kyiv from the «Vydybitchi» metro station.
Detailed information on the website www.parkkyivrus.com
The Interfax subscribers can save money with the “openbusiness-20” promo code for a 20%-discount for the adult ticket (at full price) to the Principality of Kyivan Rus:
– by previous order by tel.: +38 044 461-99-37, +38 050 385-20-35
– or at the cash desk at the entrance to the «Kyivan Rus Park».

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