Business news from Ukraine

NEW SUPPLY OF OFFICE PREMISES LOCATED ON LEFT BANK OF KYIV TO AMOUNT TO EXTRA 20,000 SQ M – EXPERTS

The new supply of office premises located on the left bank of Kyiv in 2021 will amount to only about 20,000 square meters, according to the international consulting company CBRE Ukraine (Kyiv).
According to the company’s report presented during the webinar entitled “Retail Real Estate Market Analytics” on January 27, about 180,000 square meters of new office space are expected to be released on the capital market in 2021, of which only 20,000 square meters are located on the left bank of Kyiv. Among them are office buildings on Bazhana Avenue (11,000 square meters and 6,000 square meters) and the Piramida business center (2,600 square meters).
“A piece of advice to developers: you need to pay attention to the left bank, as 35% of people working in the center live there. The lack of premises on the left bank also affects the fact that people do not want to return to offices, as it takes a lot of time to go to the center. It would be good to develop the left bank as well, which is now happening gradually,” Head of Brokerage at CBRE Ukraine Anna Silvestrova said at the webinar.
According to her, projects with an area of about 20,000 square meters, located near the metro, are optimal for the left bank.
At the same time, rental rates for high-quality class A premises on the left bank will inevitably be lower than for similar properties on the right bank.
“This is unprofitable for developers, since the return on their investment will be much longer and a little more painful,” Silvestrova said.
She said that someone should launch a project that will equalize the rights of the two banks. “I think it is faster to build a business center than the fifth or sixth bridge,” the expert said.
At the same time, CBRE predicts a reduction in new supply in 2023-2024, since many projects in the early stages of construction were canceled or suspended last year.

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KYIV IS IN FRONT OF BUILDING A COMPLICATED, BUT NECESSARY DIALOGUE WITH WARSAW – EXPERT

Kyiv is standing in front of building a complicated, but necessary dialogue with Warsaw, which has reached a dead end in recent years. It is fair to say that both sides derailed the relations between Ukraine and Poland, however, this does not mean that Kyiv should wait for a full or partial reboot of the government in the neighboring country, moreover, this may not happen, according to political expert Valentyn Haidai.
“We should not forget that in both cases with Poland and with Russia one should differ between sociopolitical and economic dialogues. It is no secret that under conditions of political confrontation between the Ukrainian and Russian elites trade and economic cooperation between the two countries is growing. We can see the same situation in case with Poland,” Haidai said in a program on the Expert Club YouTube channel.
In the expert’s opinion, there is no especial confrontation between the political elites of both countries. Poland and Ukraine do not have any territorial disputes, despite the desire to revise the borders by certain marginal circles, or a sharp conflict related to humanitarian policy, as in the case of Hungary.
“Speaking about economic cooperation, it should be noted that it was estimated at more than EUR 7 billion at the beginning of this year, which is EUR 2 billion more than in 2015, and it continues growing even during the coronavirus pandemic. Ukrainian export to Poland has increased, just the same as Polish import to Ukraine did. An increase in trade, in particular, was registered in the following segments: mineral fertilizers, textile, mechanical and electric equipment, animal fat and metal goods. In addition, Ukraine is one of the largest recipients of Polish food. According to Statistics Poland, export of agricultural goods to Ukraine has grown by more than 20%,” the political expert said.
As of the end of 2019, more than 400 joint enterprises operated in Ukraine and Poland in machine building, consumer goods and food industry, agriculture, etc. Cultural and scientific cooperation continues. Poland, which has a range of grant and scholarship programs, including the Eastern Studies, Stipend for Young Researchers and Krzysztof Skubiszewski Scholarship programs, is traditionally preferred by Ukrainian school graduates, postgraduate students and scientists.
“The problem is that if liberal Trzaskowski won, it is highly probable that Warsaw would take a step forward towards the normalization of relations with Kyiv on its own, while after the victory of conservative Duda in the presidential election the search for compromises was put off,” Haidai said.
The full interview is available on the Expert Club YouTube channel

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EXPERTS ANALYZE STAPLE FOOD AND GIVE THEIR RECOMMENDATIONS – VIDEO

In the second part of an educational video made by the Expert Club about nutrition, veganism and vegetarianism, Doctor of Biological Sciences Sviatoslav Morozov and healthy nutrition expert Veronika Vero, who promotes vegetarianism, analyzed staple food that is traditionally consumed by Ukrainians.
The experts came to the conclusion that consumption of sausages and sausage products, as well as cakes, some sorts of sweets and canned herrings could be harmful. They also recommended to eat more fruit and vegetables, as well as limit consumption of bread, flour products and bacon.
Honey, dried fruit, raisings, seasonal fruit and vegetables were highly recommended by the experts.
In addition, the experts cast doubt on benefits from regular consumption of dairy products since quality of the raw material (milk) raises questions, while lactose intolerance among many people makes consumption of such products even detrimental.
Doctor of Biological Sciences Sviatoslav Morozov said that food producers aspire to reduce their products’ cost value and often ignore the harm they may cause to consumers’ health.
Otherwise, they will be simply unable to withstand the market competition.
“Speaking about monotonous diet for farm animals and various chemical additives, they are used not to poison consumers. Nobody pursues such a goal. The task is different – to cut the cost value and make products with a very long shelf life, while it is a big question whether this is useful or at least safe for human body,” Morozov said.
The full video is available on the Expert Club YouTube channel
Veronika Vero, a vegetarian and healthy nutrition expert, spent more than eight years of training at the research and development center. She is the author of several programs, seminars, as well as physical, mental and energy retreats.
Sviatoslav Morozov is a scientist with 30 years of experience, a Doctor of Biological Sciences and the author of a series of trainings, titled “Survival in a Megalopolis.”

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MEDIEVAL COMBAT FEASIVAL «THE CALL OF HEROES»

On September, 19 and 20 in the «Kyivan Rus Park» the Medieval Combat Festival «The Call of Heroes» known worldwide will take place!
The best fighters of Ukraine will enter the Big tilting-yard and will lead full contact fights in knightly armor and with real medieval weapons!
Competitions will be held according to the rules of medieval combat, in the format of single fights “shield-sword” and group battles “5 х 5. The co-organizer of the competition is the Ukrainian Federation of Medieval Combat.
Sportsmen will put on heavy metal armors and show their prowess fighting with real medieval weapons made according to historical patterns. Those will not be staged battles, but real medieval battles!
Between the fights – an entertaining program, introducing the history and traditions of Kyivan Rus, horse shows, flash mobs and master-classes, contests and lotteries. And in the evening real delight and admiration will be provided by the bright shots of the fireballs from the Trebuchet.
The event will be carried out in accordance with the quarantine measures.
Ancient Kyiv opens at 10:00, the program will begin at 14:00.
The ticket price: a full adult ticket – 250 UAH, for pensioners and students – 150 UAH, for schoolchildren – 80 UAH, for preschool children – for free.
Ancient Kyiv in the «Kyivan Rus Park» is located in Kyiv region, Obukhiv district, the vill. Kopachiv.
Details on the website www.parkkyivrus.com
The Interfax subscribers can save money with the “openbusiness-20” promo code for a 20%-discount for a full price adult ticket 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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UK-BASED IWG OPENS TENTH WORKSPACE IN UKRAINIAN CAPITAL

UK-based IWG Plc, a flexible office solutions provider, is expanding its network in Ukraine and opening a new Regus workspace in Kyiv.
According to a press release from the company, the new workspace of nearly 1,700 square meters will be located in the business center Avenue 53 in Peremohy Avenue, and will be designed for 295 jobs.
“We have been looking for a location in Peremohy Avenue for a long time, because there was a request from our residents who travel to the center of the capital every day from Akademmistechko or Irpin and spend more than an hour in traffic jams, because time is the most valuable thing for each of us. Therefore, expanding our network in Kyiv, we opted for Avenue 53,” Director of IWG in Ukraine Yulia Lytvynenko said.
Despite the slump during the quarantine period, she said the IWG expects demand for flexible office solutions without fixed jobs to grow.
“Now, due to the high level of uncertainty, a classic office with a long-term lease is associated with great risks. While flexible offices allow companies to increase or decrease the number of employees without financial losses and pay only for the area they use,” she said.
IWG (formerly Regus Group) is the global operator of leading office rental companies. The first Regus office center in Ukraine is Horizon Tower in Shelkovichna Street was opened in 1998. In total in Ukraine as of July 2020 IWG is represented by two brands Regus and Spaces in ten business centers in Kyiv: Maidan Plaza Spaces, Horizon Tower, Kyiv Podil, Gulliver, Horizon Park Business Center, Podil Heritage, IQ center, Silver Breeze, Forum West Side, and Avenue 53.

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OFFICE REAL ESTATE MARKET IN KYIV IN 2019 EXPANDED BY 100,000 SQ M

New supply on the office real estate market in Kyiv in 2019 was around 100,000 square meters and record-hitting 255,000 square meters of areas are announced to go live in 2020
“Over the past four years, the Business Expectations Index in construction has grown significantly (137.9 points) and has broken an eight-year record. Thus, the new supply almost doubled compared to 2018 and amounted to about 100,000 square meters, and the total supply of office space in Kyiv amounted to 1.8 million square meters,” CBRE Ukraine (Kyiv), the consulting company, said in a press release.
According to developers’ announcements, in 2020 a record number of areas should enter the market – about 255,000 square meters. Moreover, in 2021 an additional 250,000 square meters is expected to go live and in 2022 some 250,000-300,000 square meters.
“The shortage of quality space in Kyiv resumed the activities of developers, as evidenced by an increase in the volume of new supply by 70% year-over-year in 2019. Despite such a sharp increase in the volume of new space, it is expected that the bulk of it will be absorbed by IT and the flexible office segment, due to pent-up demand for large quality areas,” CBRE Ukraine said.
Thus, the average vacancy rate is likely to remain at the same level or show a slight increase in the best areas on the market.
“If in the next two to three years, demand will correspond to the supply, then significant fluctuations in rental rates are not expected,” CBRE Ukraine said.

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