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Thursday, May 31, 2007

May 4-11 - Residential Rent Prices

From Ukrainian News

The average rent for one-room apartments in Kiev fell by 2.3% or USD 11.9 to USD 506.2 per month on May 4-11.

This was revealed in the data of the realtor portal Nerukhomist (Real Estate).

According to information of the portal, the average rent for two-room apartments in Kyiv fell by 0.6% or USD 5.3 to USD 826.5 per month, the average rent for three-room apartments rose by 1.9% or USD 27.4 to USD 1,436.9 per month on May 4-11.

The lowest one-room apartments rents in Kiev fell by 1.9% or USD 6 to USD 310 per month, for two-room apartments rose by 0.7% or USD 3 to USD 429 per month, for three-room apartments fell by 4.9% or USD 27 to USD 526 on May 4-11.

The highest rents for one-room apartments fell by 1.8% or USD 20 to USD 1,110 per month, for two-room apartments rose by 3% or USD 55 to USD 1,873 per month, for three-room apartments fell by 2.3% or USD 80 to USD 3,341.9 per month on May 4-11.

As Ukrainian News earlier reported, The average rent for one-room apartments in Kyiv rose by 5.1% or USD 25.3 to USD 518.1 per month on April 27 - May 4, the average rent for two-room apartments rose by 3.1% or USD 25.3 to USD 831.8 per month, the average rent for three-room apartments rose by 5.3% or USD 73.5 to USD 1,464.3 per month.

Bright Forecast for Ukraine's GDP

Ukraine's GDP may double by the end of 2010, to $200 billion, which will help boost financial markets, says Dmytro Isupov, managing director of Dragon Assets Management (Kiev).

According to him, an important factor influencing economic development will be hosting the EURO-2012 in Ukraine. The investments for the event may reach USD15-25 billion, which may result in hryvnia revaluation in the mid-term.

"Probably, the NBU will will prevent the hryvnia's rate from strengthening trough market interventions. After that, the NBU will have to fix the official exchange rate, which, in the mid-term, may be UAH 4.8/$1"

According to him, hosting EURO-2012 may cause a considerable increase in metallurgical and engineering industry share prices, as well as the appearance of new portfolio investors in the country.

According to the state statistics committee, Ukraine's real GDP grew by 7.6% in April 2007 year-on-year. In January through April 2007, GDP growth fell to 7.9% year-on-year, compared to 8% in January through March.

Ukraine's real GDP grew by 7.1% in 2006, while in 2005 the growth was 2.7%. Ukraine's government forecasts that GDP growth will slow to 6.5% in 2007.

According to the principles of Ukraine's money and credit policy for 2007, the exchange rate is expected to by UAH 4.95-5.25/$1 in 2007.

Wednesday, May 30, 2007

Real Estate Strategic Forum 2007, Kiev, Ukraine

Real Estate Strategic Forum 2007 will take place in Kiev at 22 June.

Main topics:

  • Media and developers
  • Construction market image
  • Affecting news on the market
  • Interrelation between developers and authorities
Key speakers: XXI Century, HCM, Kiev Zhitlo Invest, Kievproject, Intefax and others

More detailed info: Conference House

Tuesday, May 29, 2007

XXI Century Looking For Money

XXI Century id going to issue Eurobonds with total amount as USD 175 mln. Looking at my previous post about its Chairman' Lev Partskhaladze opinion, I understood, why he did bright forecasts. Before the issue, investors waiting a good news. But truth is pretty different, in my mind.

Anyway, the issues starts at May 25 in Luxembourg stock exchange. Discount is assumes as 10% with semi-annual payments. They intend to retire the debt at 2010.

All issue amount company plans to invest in new and existing real estate projects, including some objects for Euro-2012.

Good luck, guys!

Monday, May 28, 2007

Short News - Chairman of XXI Century Predicts Ongoing Pricing Growth

The residential prices won't down within next 5-7 years, said Lev Partskhaladze, Chairman of well-known Ukrainian developer XXI Century. His opinion is based on lack of new projects in Ukrainian market.

I don't know what really drove him to the such forecast, perhaps the desire for keeping all things happen. Or last chance to stop bubble collapse?

Sunday, May 27, 2007

Yushchenko Believes In Land Moratorium' Cancelling Within This Year

The process of land privatization in Ukraine will be completed within seven or eight months, President Viktor Yushchenko said.
"Within the next seven or eight months, land privatization in Ukraine, which started in 2000, will be completed through farmers' acts," Yushchenko said at a meeting with foreign investors and diplomats in Kiev .
Ukrainian legislation now faces the task of creating a register and various mortgage mechanisms. " I am sure that parliamentary debates on the main issue - canceling the moratorium on land sale - will be successfully completed in the third and fourth quarters 2007," the president said. The position on this moratorium issue is simple, he said: "as we agreed with key political forces, the land market in Ukraine must start to fully operate as of January 2008."
"Ukrainian landowners must be allowed to use their title to the land," the president said.

Saturday, May 26, 2007

International Investors - About Deals in Progress

Alex Podell from 1849 PLC, one of the leading player in Ukrainian market has posted some fresh info from the front line. I'd like to make it like a single post. Read it here

Thursday, May 24, 2007

Metro's CEO Says About...

I've found interesting document - transcript of Dr. Hans-Joachim Körber's speech at Annual Business Press Conference of the METRO Group. He even said couple words about Ukraine :)


2007/08 Forecats From UTG On Shopping Centers Development

According to UTG, main trend in retail commercial property is significant growth of supply, especially in Ukraine's regions.

Now they're talking about confirmed offering for 80 new objects during 2007-2008. So shopping centers amount could be increased up to 1,5 times with growth of new spaces up to 300%.

Now seven biggest cities in Ukraine (Kiev, Odessa, Dnepropetrovsk, Lviv, Donetsk, Kharkov, Zaporozhye) offer 71% from total shopping center's spaces.

Kinakh, Oleksenko, Cotton Answers in Time To Invest

Another audio file from Time To Invest IV Kiev. Ruslan Oleksenko (DEOL Partners), Nick Cotton (DTZ), Yaroslav Kinakh (XXI Century) speaking.

Download, 6 Mb

Mirax Plans Coming To The Regions

The Mirax Group considers a construction projects in Ukrainian regions, said Vladimir Adikaev, Mirax Group Executive Director .

"We have come to Ukraine and are studying the situation. If there are some interesting proposals from the regions, we will come with pleasure to study. The political situation doesn't concern us," he said.

He mentioned, that Odessa is the most interesting region for the company and the political situation would not change the plans of the company.

Mirax Group, he said, is looking for new land lots for construction. "Company has interested in large land lots, since the company constructs large facilities".

Mirax Group Vice President Andrey Khariv said the selection of land in Kyiv more depends on the location and the project rather than on a form of purchasing a project (auction, secondary market, etc).

"The way of purchase is not very important. The project itself is important. Availability of approvals of projects and some features [are also important], such as height of buildings, since we build sky-scrapes," Khariv said.

According to Adikaev, the development of Kiev is slightly stopped by the flaws of the general plan of the city, as the development of districts continues regardless of the general plan, which is corrected by construction projects.

Ruslan Oleksenko at Time To Invest Kiev IV

A little bit late, but I'm continuing to post most interesting info from Time To Invest Kiev IV. Now you could meet with Ruslan Oleksenko's speech, DEOL Partners Managing Partner . I've uploaded audio of his presentation, 8 Mb.

Wednesday, May 23, 2007

One Line News

I try to put on the blog a new format, another one - One Line News. I'm going to describe briefly, using one line. Make sense, taking into lack of time :) Mine and yours, too.

Please comment my new approach.

  • Donetsk authorities hold inventory and audit of land plots that has not developed in two years.
  • Real Estate Solution signed a contact for project developing for new residential complex in Dnepropetrovsk with 60K total space and investments about USD 40 mln.
  • Lviv intends to put on the auctions 30 land plots for construction regarding Euro-2012
  • Odessa will present its investments projects in CEPІ 2007, will take place in Warsaw
  • Italian АREA Group is ready to build new radial road around Kiev

Pres Yuschenko Talking About Investments In Ukraine

From Interfax Ukraine

President Viktor Yuschenko has outlined the key trends in attracting national and foreign investors to Ukraine's economy.

"In my opinion, we are building a new and successful dialogue with investors," he said at an investment forum of Kiev region, the presidential press service has reported.

Yuschenko said privatization, agriculture and infrastructure development projects were particularly attractive to foreign investment.

Most of Ukraine's regions have unique business opportunities, he said, but "these capabilities are used inefficiently because of the lack of dialogue among business partners."

"We do not know much about one another. We need [to give] additional information about Ukraine's potential capabilities," he said.

The president said his government was going to stage legal and transparent privatization of the country's most attractive companies, among them Ukrtelecom, the Odesa Portside Plant as well as a few engineering plants and energy companies.

Speaking about infrastructure development, Yuschenko said he would discuss ways to implement a number of large-scale transportation projects, such as building railroad and ferry routes, during a GUAM summit in Baku next month.

"The state must give businesspeople all of the administrative and legal tools to help them feel atop the organization of market relations," he said, promising that Ukraine's new parliament would adopt anti-corruption and tax bills.

Yuschenko also spoke about the country's economic achievements, stressing the need to build closer ties with its neighbors, particularly the European Union.

As the State Statistics Committee reported on May 17, the growth in direct foreign investment in Ukraine in the January-March period amounted to $847.1 million, which is 8.2% less than in the same period of 2006.

Direct foreign investment in the first quarter amounted to $1.33 billion, whereas $535.7 million were withdrawn from Ukraine.

As of April 1, 2007, direct foreign investment grew to $22.434 billion or $481.3 per capita. Direct foreign investment grew by 3.9% in the first quarter.

The capital of non-residents from the Netherlands in the first three months grew most - by $159.6 million. Capital invested by Austria grew by $148.9 million, by the United Kingdom by $127.1 million, Cyprus by $99.4 million, the British Virgin Islands by $80.9 million, Russia by $78.6 million, Germany by $56.1 million, Sweden by $52.2 million, and France by $42.4

The largest growth of foreign investment was registered in the financial sector - by $286.2 million. Direct foreign investment in construction grew by $131.3 million, real estate, leasing and engineering - by $109.2 million, industry - by $370 million, including a rise of $129.8 million in the mining industry and $239.9 million in the processing industry.

Tuesday, May 22, 2007

Short News - Current Price For Residential In Donetsk

Donetsk-based company "Gerz" are reporting about residential prices in its city. So, since the last month prices increased up to 2.2% and within 2006 this figure has became 14.1%

At this time the average price for Donetsk residential real estate is setting as USD 965/sqm.

Powerful Alliance In the Logistic Market

Pretty new, but fast-developed companies Cube Capital, PPF Investment and Vicus Limited are going to finish a brand new A class logistic complex is located near Makarov and Kiev-Zhitomir highway. Planned term of completion is 4Q 2007.

The total space of new property is 70K sqm, what is significant amount for the market in this year.

Project adviser is well-known Dragon Capital, managing company and exclusive landlord rep - Giffels

Monday, May 21, 2007

Land Around Kiev: Great Supply, Moderate Demand, High Price

Land market in Kiev suburbia has no volatility. Since 5 years, prices has stopped first time. And there is significant excess of supply. What does it mean? Perhaps, the enormous price growth with past few years. Look at this, pricing boom for last 4 month: Obukhov district + 95%, Kiev-Svyatoshin district +60%, Vyshgorod district +110, Brovary district +105%! In fact, prices must stop sometime, and here its is, I guess so.

Many experts say that prices exceed 100 USD/sqm are too high to grow more (Obukhov direction is absolutely different case, taking part of huge love of Ukrainian elite for that land).

But if in some time ago many people consider land plot and following single-house construction as an alternative way to solve their housing problem, now it is changed. Scary utilities, lack of retail, shopping and services, no entertainment, constantly rising land prices, and stability in apartment pricing lead people to think twice concerning moving to suburb.

I see some way to improve that situation: low-cost mortgage financing for single-family residential construction, improving and increasing numbers of infrastructure objects, roads construction. Last visible reason is new price growth in the Kiev’ multifamily residential could push land market to grow again.

Sunday, May 20, 2007

Role of the local and international players in Kiev commercial RE

There is one sustainable trend in Kiev commercial real estate: local developers build and sell international ones - buy and operate.

Each ones have own reasons:

Local players:

  • Close relations with Kiev city council (many key persons are deputies as well)
  • Direct access to attractive land plots
  • Possibility to solve many restrictions and problems with permissions
  • Cheap labor cost
  • Great profitability
  • Attractive cap rates (10-11%)
International operators:
  • Lower risk to buy instead to build
  • Stable income stream
  • Well-proven operating and maintaining technologies
  • Low rate longterm funding
  • Huge demand for quality spaces
  • Attractive yield (12-18%)

Most significant last time deals are form Quinn Group ("Ukraine" shopping center, "Leonardo" business center, 1 phase and perhaps 2nd, too. Some tell about Alta-Center shopping center as well). Some rumors are about Deutsche Bank's intends to buy "Globus" in the Kiev' heart. Apollo Real Estate Advisors bought "Piramida" shopping centre. And many deals still in progress.

I sure that in the near future that trend even boosts. It seems to be truth, 'cause for transaction amount of 1 shopping center, ex-owner able to build 3-4 new ones.

Short news - financials from "Ukraine" shopping centre

"Ukraine" shopping center, owned by well-known Kiev' RE player Quinn Group finished 2006 with a net profit UAH 9.25 mln (USD 1.83 mln.)

They increased net revenues by 19.9% (UAH 7.57 mln in 2006 over 2005) to UAH 45.6 mln.

Quinn group bought the property (93% of share capital) form US company NCH Advisors at 2006 for USD 59 mln.

Friday, May 18, 2007

Dragon Capital intends to play active role in local market

Dow Jones Newswire

Dragon-Ukrainian Properties & Development, an active investor in the development of new commercial properties as well as in the redevelopment of existing properties in Ukraine which offer the prospect of attractive returns to its shareholders, said Thursday that it plans to float on AIM.

The company plans to place new Ordinary shares of 1 pence each at $2 and expects to have a market capitalisation of $200 million on Admission which is expected on June 1.

The initial focus will be on the development of new and re-development of existing commercial properties in the retail, office and warehousing sectors.

However, the directors will also consider alternative types of investment in real estate, including land acquisitions with development potential for residential projects, where they believe such investments will generate appropriate returns for shareholders.

The company's initial investment and development activities will focus on Kyiv and Kyiv district as well as other major regional centres of Ukraine where the population exceeds 700,000 people.

Whilst the primary focus will be on the development and re-development of commercial properties and, to a lesser extent, on secondary market acquisitions, the company will actively seek opportunities to enter into sale-and-leaseback arrangements, mainly in the retail sector where the directors believe such opportunities are likely to be present, given the continued expansion of the retail sector in the Ukraine.

The company expects to implement its strategy in partnership with one or more local property development experts. It may acquire properties from such partners and may make investments in, or from joint ventures with them.

The company expects to invest the net proceeds of the placing within 24 to 30 months after Admission. Funds not invested will be held on deposit in cash or in near cash instruments.

Dragon Capital Partners will act as investment manager to the company and will be responsible for identifying new investment opportunities for the company. The company's nominated adviser and broker is Zimmerman Adams International.

Thursday, May 17, 2007

Strange financials from the one of the biggest Kiev developers

I found pretty funny information about Liko Holding financial statement. Info provided by Ukrainian News. Everyone who involved in development in Kiev market should Laughing Over Load.

Kyiv-based Liko Holding company ended 2006 with a loss of UAH 0.37 million.

The company disclosed this in a statement, text of which Ukrainian News has.

At the same time, in 2006, the company increased net profit by 4.3 times, compared to 2005 to UAH 74.48 million.

The company ended 2005 with a net profit of UAH 2.47 million and net revenues of UAH 17.38 million.

As Ukrainian News earlier reported, the company had agreed with Ukrprombank on housing crediting.

Liko Holding is registered as a limited liability company and provides construction mainly in Kyiv.

New concepts for Odessa coastal slopes

Odessa City planning council recommended to the further development of conceptual design for the coastal slopes.

This information released Head of architecture and town planning department of Odessa City Council Vladimir Kolokolnikov. According to him, there are two hotel complexes with apartments, and four multi-level parking. The total parking place available - 1100. The maximum height of buildings are 10 floors.

The project consists a re-development of existing public green space with total area 11 ha. The project architect Oleg Klimentev followed environmental requirements and basing complexes 100 meters from the water. The access road to the complex proposed lay trough the tunnel.

However, during the meeting several local architects said that to build such complexes without engineering and environmental assessments should not be. Earlier, Odessa City council rejected the project to build two hotel buildings in another part of the coastal slopes, in the French Boulevard.

Wednesday, May 16, 2007

Residential construction figures and pricing in Dnepropetrovsk

In this year Dnepropetrovsk region finished 74K sqm of residential buildings, which is 10K more rather than year before.

According to the press department of service of D
nepropetrovsk region administration, the total volume of residential construction increased by 15%, while in Ukraine it is 4% growth. The private developers built more than 80% of total residential buildings.

Nearly a third of housing built in the regional center.

So far, according to the Dneproperovsk real estate experts, price increasing in the new construction has stopped. According to the analyst of RealNest company, the slowdown in prices in the primary market can be attributed to a decrease in demand, which fell by about half with the same supply.

The average price per square metre in in new buildings in Denepropetrovsk which is scheduled for the end of 2007 is about USD 1500, and for the objects which will finish during 2008 - about USD 1100.

Short news - construction price index in Ukraine

The price index for building and construction in Ukraine in March 2007 was 104.2% compared with December 2006, the State Statistics Committee reported.

According to the report, most significantly (by 5.2%) increased the price of the construction of residential buildings, non-residential construction gained 4.3%.

With reference to Goskomstat data, the index in December 2006 was 123.4% compared with December 2005, while in December 2005-126%.

Tuesday, May 15, 2007

Another point of view on residential market

Many people are talking now about situation on Ukrainian residential real estate market. My goal to discover the different thoughts and opinion to find right way of thinking.

So, I uploaded a new article from Business Ukraine regarding such issues. Please read and comment. PDF, 1.7 Mb

Israeli companies in Ukraine. Another one.

Yesterday I wrote about Israeli companies expansion in Ukraine. And here another news related with this topic, about Adi Keizman, who holds the controlling interest of the ADO Group.

Read more here

Monday, May 14, 2007

Short news - Israeli companies continue to come in Ukraine

Engel Europe Ltd. has bought a 2.6-acre lot in Kiev for USD 6.8 mln on which it plans to build a 65K sqm mall for USD 90 mln. This is the company's sixth project in Ukraine.

Engel Europe reportedly plans to build a portfolio of at least ten malls in Ukraine and then float its Ukrainian business on a European marketplace, perhaps the London Stock Exchange.

International aliances become stronger in Ukraine real estate market

From Cleveland Business Online

Developers Diversified Realty Corp. is preparing to develop a mall in Russia and another in Ukraine through a joint venture with ECE Projektmanagement, a development concern in Hamburg, Germany.

Scott Wolstein, chairman and CEO of Beachwood-based Developers Diversified, disclosed the plans in the real estate investment trust's in a conference call with securities analysts.

Mr. Wolstein said his REIT, which specializes in shopping centers, "plans to start construction with (ECE) in the near future." Developers Diversified spokesman Scott Schroeder said he was unable to provide details about the proposed transaction.

Shopping center trade magazines frequently refer to ECE as the owner of Europe's largest shopping center portfolio, with 66 centers, and ECE describes itself that way.

According to its web site, ECE is active in Eastern Europe and is a natural to be on the front lines in developing shopping centers in Russia and Ukraine.

ECE owns two shopping centers in Hungary and five in Poland. It is developing centers in Lithuania and Bulgaria, as well as additional centers in both Hungary and Poland. ECE is a diversified developer itself; according to the company's web site, it also engages in health care, industrial and office developments.

Rich Moore, a Beachwood-based REIT analyst for RBC Capital Markets, said he believes entering foreign markets through joint ventures with developers familiar with the territory is a solid strategy for Developers Diversified.

He said there's an element of uncertainty to a retail development venture in Russia or the Ukraine because it is unknown how such a venture will do.

"For a company DDR's size, they could totally botch it up, write it off and no one would notice," Mr. Moore said. "But I don't think they'll botch it up."

Sunday, May 13, 2007

Logistics Markets in CEE from DTZ

Next presentation for Time To Invest Kiev IV, from from DTZ. It calls "Logistics Markets in CEE". I removed a couple slides not related with Ukraine (sorry guys:)


Friday, May 11, 2007

Info from residential market

Kiev flat prices going down. During the summer time secondary market supply prices could decline up to 10%. In spite of lack real buyers prices can't grow any longer. Different residential experts say that since the end of last year, sales of each thirteenth flat cut prices USD 3-15 K, and the same number of owners to do so in negotiations with the buyer.

Sounds real, comparing that apartments in Kiev are in 1,5-2 times more expensive than in Warsaw, Sofia, etc.

As a result, there are a large number of "frozen" apartments. According to the "Planeta Obolon", as compared with April 2006 now the listings for sale have 25% more apartments and nearly 60% more than in December last year.

Realtors say that the disappearance of the buyers has led to some " step back" prices. However, as a 1, 5 year, this is regarding only those who can not wait and is interested as quickly as possible to obtain cash.

Most experts agree that at summer even more apartments reduce their price and the total trend could reach 10% down.

Thursday, May 10, 2007

Minister Rybak Announces Completion Of Drafting Of Housing Code

(Ukrainian News)

Deputy Prime Minister Volodymyr Rybak has announced the completion of the drafting of the Housing Code.

Rybak's service made the announcement, a text of which Ukrainian News obtained.

According to the announcement, Rybak has held a meeting dedicated to the present state and the problems connected with the drafting of the Housing Code.

The meeting was attended by the heads of the Economics Ministry, the Finance Ministry, the Regional Development and Construction Ministry, and the Labor and Social Policy Ministry as well as by the relevant representatives of the Cabinet of Ministers' secretariat.

On the outcome of the meeting, Rybak said that the process of drafting of the Housing Code had generally been completed.

Rybak directed central organs of the executive branch of government to complete agreement of this document with the relevant agencies within two weeks so that it can be submitted to the government Committee on Regional Policy, Construction, Housing, and Utilities for consideration and submitted to the Cabinet of Ministers for approval before the end of May.

Rybak said that the Housing Code should be considered by the parliament in June.

As of today, most of the comments and proposals on the draft Housing Code have been addressed in the text section of the draft code.

The issues that require reconsideration include the need to specify certain definitions in the draft code (for example, official premises and hostels) and bringing individual provisions of the draft code in line with the active legislative acts.

As Ukrainian News earlier reported, President Viktor Yuschenko has directed the Cabinet of Ministers to submit the draft Housing Code to the parliament for consideration by July 2007.

Rybak forecast that the parliament would adopt the Housing Code by April.

The Housing Code regulates legal relations of individuals and legal entities, executive authorities and local self-governments in the housing sector.

In October 2005, the parliament rejected a Housing Code with recommendations of the President.

The parliament adopted the code in July 2005, but President Viktor Yuschenko vetoed it.

The Housing Code of the Ukrainian Soviet Republic, which was adopted in June 1983, is presently in force.

5 May - Current prices for residential real estate, Kiev.

Current prices (average weighted) for one-room apartments on Kiev primary real-estate market has become USD 2,048 per sq. m., the average prices of two-room apartments on the primary real estate market on USD 2,699 per sq. m., for three-room apartments USD 2,534 per sq. m.

Secondary market shows such figures: the average price for one-room apartments on Kiev secondary real estate market is USD 3,083 per sq. m., two-room apartments on the secondary real estate market on was fixed at USD 3,146 per sq. m., level, for three-room apartments - USD 2,975 per sq. m.

Tuesday, May 8, 2007

Congrats! Kiev are between Dublin and Milan

As JLL reporting in their European Office Property Clock report, at the end of 1Q 2007 the Class A rent rates increased up to 8.9% comparing the same period last year. And Kiev shown a significant result among other European cities. So, there are annual A class offices rates, EUR :

  1. London (West End) - 1546
  2. Moscow - 974
  3. London (City) - 952
  4. Paris - 760
  5. Dublin - 646
  6. Kiev - 527
  7. Milan - 500
  8. Stockholm - 418
  9. Warsaw - 300
  10. Prague - 240
  11. Budapest - 222

Funding for IMB from IFC

Interfax, Ukraine Business

The International Finance Corporation (IFC), the private sector arm of the World Bank Group,has opened a 10-year, $7-million first housing finance credit line for the International Mortgage Bank (IMB), the IFC reported.

The facility will support the growth of IMB's mortgage portfolio and expand access to credit for Ukrainians seeking to purchase homes or make home improvements. The loan agreement was signed on March 28.

"This agreement with IFC is a landmark for IMB. We are also in discussions with IFC about other types of financing over the next six to nine months.

We believe the deal signed today is only the beginning of a fruitful partnership," the IFC press release quotes Todd Esposito,Chief Financial Officer of IMB Group,as saying.

Yuriy Blashchuk,IMB's Chief Executive Officer,said that the funding is the second deal that IMB has signed this year,bringing the total long-term mortgage funding to about $50 million.

"It will enable us to continue to be a leader in the Ukrainian marketplace," he said. "We look forward to working with IFC over the next several years."

Jerome Sooklal, Director of IFC's Central and Eastern Europe Department said,"Supporting housing financing in Ukraine is a strategic area for IFC. By financing a growing bank known for best practices, affordable financing, and outstanding service, we are helping build the mortgage market and helping Ukrainians purchase homes."

Ukraine became a shareholder and a member of IFC in 1993. As of March 20,2007, IFC invested around $705 million in 32 projects.

The IFC's investment program in Ukraine is expanding rapidly, with a focus on the financial, agribusiness, construction materials, retail trade and services, energy and infrastructure sectors.

The IFC has also been conducting an extensive advisory program since 1992,which initially focused on the privatization of small businesses, land, and idle construction sites.

Current donor-funded programs offer advice on corporate governance, leasing, and agribusiness. The IFC also seeks to improve the business environment and promote growth of small and medium enterprises.

IMB Group Public Ltd. is Ukraine's leading consumer lending holding, offering mortgages and point-of-sale loans, and taking deposits.

The group owns a 100% stake in International Mortgage Bank and in Family Credit, a consumer lending intermediary. IMB Group is backed by Horizon Capital, Ukraine's leading private equity fund manager.

IMB was founded in 2004. The bank's overall assets in 2006 grew by 4.3 times to UAH 374.379 million,while its aggregate liabilities increased by 5.9 times to UAH 356.92 million. The bank's losses in 2006 ran into UAH 9.263 million, whereas in 2005 they were UAH 10.445 million.

The bank ranked 95th among 169 operating banks in terms of overall assets (UAH 374 million) by January 2007,according to the National Bank of Ukraine.

Live again

Hello all.
Small (too small:) vacation finished. I continue to deliver you the news and events in Ukrainian real estate. I'd like to get any opinions, proposals and so on about topics interested for you. Feel free to wright me any time.
Regards, Sergey