Dnepropetrovsk City Master Plan Is Approved

Dnepropetrovsk City Council approved a master plan for the city until 2026.

According to to this document, there is forecast of population growth to 1.107 mln., with residential construction volume (single and multifamily) 6.8 mln. sqm.

The new master plan maintains continuity with the previous planning structure, roads direction, land plots for construction. Further development of the city will take place within its administrative borders at the using of existing vacant land, as well as through the reconstruction and sealing of existing buildings.

In fact, the new master plan assist to Dnepropetrovsk to develop its real estate property and solve traffic problems, particularly relevant to the Euro-2012.

Short News - Hyatt Was Opened in Kiev

Perhaps, you remember my old post about Hyatt history in Kiev and some complications there. But now all of that is behind. Hotel has opened its doors at last week.

However, this is a "soft-opening", you can book it already. And we can congratulate the Industrial Union of Donbass, which is shareholder of this property with the best 5-star hotel in Kiev.

Standard price is EUR 300 (depending from season), which is lower rather than Radisson, for instance.

Welcome to Kiev, welcome to Hyatt Regency Kyiv!

Sergey Kalinin's Interview For 1st Business Channel

This is one of my interviews for TV, regarding to office market in Kiev. And you can take a look on building where I'm working, the Leonardo Business Center. Very nice place :)

Cabinet Approves Procedure For Architectural And Technical Supervision Of Construction Projects

From Ukrainian News

The Cabinet of Ministers has approved the procedure for architectural and technical supervision of construction projects.

Ukrainian News learned this from government resolution No.903 of July 11.

Specifically, the field supervision is exercised by an architect of the project or an authorized person, who can involve in the effort the subcontracting planning organizations that participated in some parts of the project.

The architect supervises the preparation of necessary documentation if it is developed by another entity of architectural activity.

He is also to appoint a field supervision group to visit the construction site on a regular basis and record the work results.

By the resolution, the technical supervision procedure is exercised by the customer or the builder during the entire construction period and all design solutions and government standard requirements must be observed.

The technical supervision includes the check of documents that verify the parameters of structures and production items, the record keeping of the amount of construction and assembly works, and the evaluation of the results of the works performed.

Supervisors have the right to demand from the subcontractor to fulfill the amount of work stated in the design and estimates, to interrupt the project if materials are found to be of poor quality, to conduct a laboratory research on the materials, and to remove project deviations.

They can also demand suspension of the project.

As Ukrainian News earlier reported, the parliament created a single vertical executive authority for regulating architecture and construction.

The Ministry of Construction, Architecture, Housing, and Utilities initiated state expert examination of investment programs and construction projects by a single state organization.

Hypo Real Estate Bank International Finances MLP Chaika Logistic Complex

Hypo Real Estate Bank International has opened a USD 82mln loan line to MLP company (International Logistic Partnership; Russia) for construction of MLP Chaika logistic complex near the Chaika in Kyivo-Sviatoshynskyi district of Kiev region.

According to the report, the purpose of funding a financing of the construction and further refinancing of MLP Chaika logistic complex.

«That is the fourth project financed by Hypo Real Estate Bank International. In 2006-2007, MLP received four credits from the bank for over USD 530 mln," the report reads with the reference to MLP partner Bruce Gardner.

According to MLP's CEO Vitaliy Kaschenko, it is the first time when the bank to provide project financing for construction in Ukraine.

Investments in the development will exceed USD 78 mln.

Cabinet Approves Procedure For Architectural And Technical Supervision Of Construction

From Ukrainian News

The Cabinet of Ministers has approved the procedure for architectural and technical supervision of construction projects. Ukrainian News learned this from government resolution No.903 of July 11.

Specifically, the field supervision is exercised by an architect of the project or an authorized person, who can involve in the effort the subcontracting planning organizations that participated in some parts of the project.

The architect supervises the preparation of necessary documentation if it is developed by another entity of architectural activity. He is also to appoint a field supervision group to visit the construction site on a regular basis and record the work results.

By the resolution, the technical supervision procedure is exercised by the customer or the builder during the entire construction period and all design solutions and government standard requirements must be observed.

The technical supervision includes the check of documents that verify the parameters of structures and production items, the record keeping of the amount of construction and assembly works, and the evaluation of the results of the works performed.

Supervisors have the right to demand from the subcontractor to fulfill the amount of work stated in the design and estimates, to interrupt the project if materials are found to be of poor quality, to conduct a laboratory research on the materials, and to remove project deviations. They can also demand suspension of the project.

As Ukrainian News earlier reported, the parliament created a single vertical executive authority for regulating architecture and construction.

The Ministry of Construction, Architecture, Housing, and Utilities initiated state expert examination of investment programs and construction projects by a single state organization.

One Line News, July 18

• Dnepropetrovsk authorities will offer new land plots for hotel development due Euro-2012
• During 2Q residential prices in Odessa has felt up to 10%
• XXI Century plans an additional stock issue on the Warsaw Stock Exchange f0r USD 200 mln.
  
• UTG And ICSC are creating International Real Estate study course in Ukraine
• The UBG Corporation has established the UBG Construction Management company.
• Lithuanian Hanner (ex co-owner of Olimpic Plaza) goes out from Kiev
• Metro Cash&Carry Ukraine is going invest EUR 100 mln. in 2 new shopping centers in Kiev city
  

New Retail Project In Odessa's Beach Part

British Absolute Capital Management Fund closed the first transaction in Ukraine by purchasing a land plot in Odessa for the shopping center Riviera Shopping City with total area exceeds 100K sqm and investments about EUR 75 mln.

Regarding the AIM information Absolute Capital Management Fund announced to investors that acquired in the eastern part of Odessa, near "Riviera" beach a plot of 18.5 Ha for the Riviera Shopping City.

According to the Fund Manager Robert Provine, this is a its first transaction n Ukraine. "We have been negotiating for the acquisition of several objects, and some of them already have signed contracts .We are ready within three years to invest in real estate in Ukraine EUR 350 mln." said Mr. Provine and promised over the next six months to announce about these projects . ".

Yuschenko Has Got In Olimpic Plaza Situation

President Viktor Yuschenko is calling on the Kiev authorities to solve problems with the construction of a Olimpic Plaza near National Olympic sport complex.

Yuschenko demands that the question be reviewed before the next meeting of the Euro-2012 coordination council.

As the President noted, the critical situation should be resolved with observation of all technical requirements regarding safe evacuation of spectators, without violating the investors' rights.

Last sentence sounds very positive, isn't it?

Thinks Investment from DEOL Partners

From Business Ukraine #15

New TRE'n'D in Retail Market

A developer Trade Real Estate & Development (TRE'n'D), a member of the holding company AVentures Group, plans to open shopping centers in Odessa and Cherkassy. Delivery of first of them in Cherkassy planned by the end of 2007 on the16 ha land plot of 16 hectares. The total area of the shopping center is 60K sqm. Next step of the company the company, by the end of 2008 to complete the construction of shopping center with total area about 80K sqm., located on the 8th km of Leningrad Highway in Odessa.

The company did not disclose the amount of investment in construction of shopping centres, but report that is own funds and bank loans. Besides, in the near future the company plans to attract a strategic investor to finance the development. Some figures: private placement 20-25% stake of the TRE'n'D before the end of 2007, by which attracts at least $ 10 million for future projects.

The company also reported that are being designed for construction projects in Kiev shopping centre with GLA 18K sqm. and 7K sqm. in Poltava.

130 Metres Of Steel And Glass In Kiev City Center

In the downtown - at the European square, nearby to Khreshatik and Maidan it is planned to build huge skyscraper - 130 m height. Taking into the fact that this is a historical center of Kiev, there are many questions.

Quite possible that it will looking like this monster

Kiev construction rules and policies for downtown don't allow to build higher than 73 m. Thus, this object could be classified as experimental construction with a much more complicated permission and legal side of the deal.

And there is another reason to restrict the height. Many architects guess that no building in Kiev should not exceed the Kiev Lavra dome. But authors of the project prove that this is would be done.

A couple words about investor. This is Graal company, which some players connect with Mikhail Tabachnik , brother of Deputy of Prime Minister of Ukraine, Dmytro Tabachnik.

The company bought this 0.2 ha land plot for UAH 8.7 mln., so many people say that is very low price for this land in heart of Kiev. Total investment amount of the project is estimate as EUR 160 mln., so Graal intends to attract partner for this development. There will be 5-star hotel, office premises, luxury retail, entertainment facilities.

So let's wait a news about this big project and final design of the building.

One Line News, July 11

• Surbana Corporation Ltd. (Singapore) is interested in developing a Kiev master plan after meeting with Mr. Bass, Deputy Mayor.
• The final decision on the construction of the Olympic Plaza will be taken with the participation of German' Hoefter company
• From beginning of 2007 price increasing in Donetsk residential market has reached 17.5%
• Dnepropetrovsk is going to build an aquapark to Euro-2012
• Kiev Real Estate Specialists association predicts 10-15% decreasing in office rent rates in 2008
• Donetsk retailer Amstor sold own bonds for more than UAH 300 mln.
  

Monthly Economic Monitor Ukraine, June 2007

Monthly Economic Monitor Ukraine from Institute for Economic Research and Policy Consulting. Here is June issue.

Main topics

• The President and the Prime Minister agreed to hold early parliamentary elections.

• In the first quarter the real GDP increased by 8.0% yoy.

• The State Property Fund law was passed by Verkhovna Rada.

• Ukraine's membership in the WTO is likely to be postponed until 2008.

• Central fiscal surplus reached 1.4% of the GDP due to high tax revenues and considerable under-execution of expenditures.

• Between January and March real wages grew by 14.8% yoy.

• Inflation accelerated to 10.5% yoy in April.

Interview with Mirax' CEO

From Business Ukraine #15

XXI Century Announces Its Ambitious Plans

Company is going to build 28 shopping centers, 20 logistics complexes and about 12 office centers. For these projects, the company offers to regional developers and construction companies a strategic partnership. Lev Partshaladze, Charmain of Board told at the press conference on Friday.

He explained that the XXI Century is joined with one of the Kharkov company, which has already begun development. Thus their plans to build in Kharkov a couple shopping centers, one or two hotels, office and a logistics center. This company is ready to use such model of cooperation in other regions of Ukraine. In addition, the company plans to be involved in residential real estate, but to build housing in the regions, XXI Century "treated with caution, arguing that small towns construction cost may be higher than the selling price.

Mr. Partshaladze proves that the company is not afraid of competition in the regions, because the demand for real estate is still far out of supply. The main reasons for coming to the regions the Board mentioned lower prices for land "plus loyalty of local authorities who are willing to "green road " for the construction of real estate in the region".

XXI Century plans to work only in 1 mln. population cities for a while. The volume of investment in future projects is not disclosed.

Terry Pickard About Warehousing Demand

From Business Ukraine #15

New High Rise Project In Kiev' Center

Kiev City planning council finally approved the construction of 30-floors buildings near planetarium on Bolshaya Vasilkovskaya str.

According to the architect Maria Susskoy, now planetarium has 3 floors. The project's idea is to build 4th floor up on the existing building and build a skyscraper with 120 m. height.

There will be a lobby (1st floor) and 5-floors parking for 100 cars.

The investor is going to give 4 floors to current owner (public organization) and on rest of space to place offices, conference facilities and hotel

Total space is planned to K40 sqm

News From Lviv Regarding Euro-2012

From Ukrainian News

The City council of Lviv plans to allocate 30 land plots for construction of hotels during preparations for the Euro-2012 that will take place in Ukraine and Poland, said Head of the natural resources and land tenure department Mykhailo Bokalo.

According to Lviv’s Chief Architect Yurii Kryvoruchko, it is necessary to build eight 4-5-star hotels able to of accommodate a total of 800 people and several 3-star hotels capable of accommodating a total of 1,000 in Lviv before 2012.

Kryvoruchko believes that what Lviv needs most of all is 1-2-star hotels to accommodate about 40,000 people. He believes that student hotels can temporarily be converted into hotels.

Lviv region’s Governor Petro Oliinyk has set up an organizing committee on preparation for hosting the 2012 European soccer championship.

DEOL Delivers New Office Project To The Market

DEOL Partners starts to offer new B+ office project for investing. Land plot (0.99 ha) is located on Kustanayskaya Str., Goloseevskiy district and leased for 5 years.

The projected office center consists of 3 building: 1st is 9-floors, 2nd and 3rd – 22-floors buildings. The complex total area is K78.6 sqm, with offices (exceed K55 sqm), corporate housing, retail, amenities, conference facilities. Project provides underground parking with total space as K12.8 sqm (316 parking lots).

Required investment amount of the project is estimated as USD 65 mln.

One of the weakness of the project is lack of infrastructure facilities in the area, i.e. (entertainment, supermarkets). Taking into huge demand in Kiev for offices A and B+ I guess this investment project should successful in mid-term forecast.

Master Planning For Major Cities Can Appear

The Regional Development and Construction Ministry intends to examine master plans of Dnipropetrovsk, Donetsk, Odessa, Chernihiv and Crimea. Volodymyr Yatsuba, Regional Development and Construction Minister, told this in an interview to the Business weekly.

«... in the nearest time, the we will consider master plan of development of Dnipropetrovsk region, Donetsk, Odessa, Chernihiv and complete general plan of Crimea,» he told. The minister noted that development of the master plan is crucial for attraction of investors to the regions.

«I believe that master plan is the regulation for development of the region. It is difficult for investor to work without a master plant, which specifies where an industrial zone is or a residential area,» he explained.

The minister also welcomed approval of the law On Amendments to Certain Legislative Acts of Ukraine (regarding state’s architectural-construction control).

«Earlier the ministry was rather a consultative entity in this question: we could only describe the proper procedure of examination of this or that application for permission for construction. From now on, we will control this sector,» Yatsuba said. He guesses that control of the ministry will help the construction companies.

«I think the market will benefit if permissions for construction are examined by one center, which will strictly define procedures in all regions,» Yatsuba put it.