Gross take-up of warehouses in the Kyiv market in January-March 2020 grew by 15% year-over-year, to 28,800 square meters, according to a survey of Cushman & Wakefield Ukraine. “According to our experts, in the first quarter of 2020, the net take-up in the segment was negative and amounted to approximately minus 40,800 square meters, which is mainly due to a change in the rental strategy of the owners of several facilities in the period before the spread of COVID-19,” Head of Research and Development Consultancy at Cushman & Wakefield Ukraine Marta Kostiuk.
According to the company, preliminary leases amounted to 85% of the total volume of transactions in the first quarter.
Since the beginning of the year, there was no new offer on the warehouse real estate market of Kyiv. However, by the end of 2020, two facilities with a total area of 60,000 square meters will go live.
According to the survey, the primary vacancy of warehouses in March 2020 increased 2.1 percentage points compared to the end of 2019 and amounted to 2.9%. Moreover, the occupancy rate of the facilities planned for launch this year is already 40-100%, the company said.
Base rental rates for high-quality class A warehouses in Kyiv and its suburbs remained at $4-5.8 per sq. m. a month, and class B $3.2-3.8 per sq. m. a month.
“Given the growing risks associated with the economic slowdown amid the spread of COVID-19, from the second half of March 2020, a number of tenants in the warehouse and logistics real estate market in Kyiv and its suburbs initiated negotiations with lessors in order to minimize their rental costs,” Kostiuk said, clarifying that the provision of preferential conditions for tenants is individual in nature and is not a trend.
Coal reserves in the warehouses of thermal power plants (TPP) of energy generating companies in Ukraine increased by 8.2% (by 106,200 tonnes) from October 15 to October 21, to 1.391 million tonnes, which is 14% (228,100 tonnes) less than last year, according to the Ministry of Energy and Environment Protection.
According to the calculations of the Interfax-Ukraine agency, reserves of anthracite in the warehouses of thermal power plants amounted to 340,300 tonnes, which is 11.5% more than a week ago, and almost twice as much as a year earlier (173,400 tonnes). At the same time, gas coal reserves at thermal power plants’ warehouses amount to 1.051 million tonnes, which is 7.2% (71,000 tonnes) more than last week, and 27.3% (395,200 tonnes) less than last year.
Coal reserves (anthracite and gas) in the warehouses of combined heat and power plants for the week rose by 7.5% (by 12,400 tonnes), to 176,500 tonnes, which is 26.1% (62,500 tonnes) less than on October 22, 2018.
As reported, the consumption of energy grades of coal by TPPs and combined heat and power plants in the country in 2018 increased by 5.7% (by 1.409 million tonnes) compared to 2017, to 26.22 million tonnes.
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.
Coal reserves in the warehouses of thermal power plants (TPP) of Ukraine’s energy generating companies as of September 23, 2019, totaled 1.072 million tonnes, which was 55.7% (383,700 tonnes) more than in early September, but 36.9% (626,000 tonnes) down year–over–year, according to the Energy and Environment Protection Ministry.
Interfax-Ukraine’s estimates show that since the start of autumn, anthracite coal reserves in thermal power plants’ warehouses have increased by 12.3%, or by 29,200 tonnes, to 265,800 tonnes (31.1%, or 63,100 tonnes up year-over–year). Gas coal reserves for the reporting period have grown by 78.4%, or 354,400 tonnes, to 806,200 tonnes (46%, 689,100 tonnes, down year-over-year.
Anthracite and gas coal reserves in the warehouses of cogeneration plants (CHPP) from the beginning of the month have increased by 2.4%, or 33,100 tonnes, to 131,400 tonnes. However, this is 54.1%, or 155,000 tonnes, down on last year’s reserves.
As reported, consumption of thermal coal by Ukraine’s TPPs and CHPPs in 2018 grew by 5.7%, or 1.409 million tonnes, compared to 2017, to 26.22 million tonnes.
The Antimonopoly Committee of Ukraine (AMC) has allowed Dragon Capital Investments Limited (Cyprus) to acquire Korma Development LLC (Kyiv), owned by Europolis GmbH, which is part of the large real estate group CA Immo Group (Vienna, Austria).
According to the AMC, the agency permitted Dragon Capital Investments Limited to acquire a stake in the charter capital of Korma Development, which provides the buyer with over 50% of the voting shares on the company’s board.
According to the unified state register, Korma Development is the owner of a 100% stake in the charter capital of Europolis Property Holding LLC (Kyiv).
Europolis Property Holding owns several land plots in the village of Kolonschyna in Kyiv region near highway E-40 (M-06), which are designed for construction and operation of storage facilities.
The total area of the plots is about 50 hectares.
According to CA Immo Group, in 2017 it sold a site with an undeveloped project in Ukraine. As of 2015, the company estimated the value of the Ukrainian asset at EUR3.4 million.
Dragon Capital Investments Limited is part of Dragon Capital Group, founded in 2000, which is one of the largest in the Ukrainian investment market. It works in the field of direct investment and financial services, provides a full range of investment banking and brokerage services to corporate and private clients.