No MIRAX Any More

March 3, Board of MIRAX, formerly, one of the biggest developer in Russia, has desided to stop MIRAX brand and TM respectively. As official notice says, all obligations will be fullfilled, particularly for projects with back from Sberbank (Moscow City project, for instance)

Mirax Plaza flows away to GazStroyConsult which is, according to rumors, very close to Prime Minister Vladimir Putin.

Most undefined issue is with international projects and desicision will be taken according the mutual agreement with local partners. The same situation with Mirax Plaza in Kiev. No information about its destiny so far

So, say goodbye to MIRAX...but who care the names     

New MD in Multi Development In Ukraine

There are news on the market - one of the biggest retail developers, Holland-based Multi development had nominated Gawein Minks to Managing Directors in Ukraine.
Previously, Mr. Minks has been involved as Senior Developer in company' Head Office in Holland
It seems the main goal for new MD is further development, financing and lease for brand new SC in Lviv, Forum Lviv. Multi Development itself considers this time as good one for existing and new opportunities in Ukraine.  

Globus Ex-owner Forecasts RE Situation

Alexander Melamud, ex-owner of Globus SC and current owner of one of the biggest retail property in Kiev - Dream Town is trying to set kind of forecast for the future. He is stating that within 4-5 year real growth in real economy, as well as for the investment prices for prime properties is not possible.

Also he explained that ready to sell out his own properties, but there are no suitable offers so far. "I guess there is small possibility for that", said Melamud. "Now, I'm on the track with several real estate and restaurant projects in Russia, but I wouldn't like to discuss it".  

New General Manager in InterContinental Kyiv

Hotel Chain InterContinental Hotels Group (IHG) is officially appointed Carsten D. Reiher as General Manager for 5-star InterContinental Kyiv. Carsten Rahere joined to IHG group in 1989 as F&B manager assistant

in the Crowne Plaza Heidelberg hotel. With over 20 years experience in the hotel business, he has repeatedly in charge as general manager of such renowned hotels like InterContinental, Crowne Plaza, Crowne Plaza Resort, Holiday Inn and Holiday Inn Resorts throughout Europe and the Middle East. 

During his career Carsten Reiher involved in opening, closing, re-branding and re-positioning of a number of world-class hotels. Let's give our best vishes to Carsten in his duties in a hotel and pleasant living in Kiev.  

ECO Tower Last Minutes Progress

It seems, our property will be launched pretty soon :) We have a small fan-club here, so, please find last pics from SkyscraperCity group here

NAI Pickard Short Kiev Market Survey for 1H 2010

NAI Pickard has published a NAI Pickard survey of Kiev property market for the 1st 1H 2010. The survey highlights the main macroeconomic indexes for Ukraine and describes main trends in commercial and residential markets in Kiev.

Download link (PDF)

Odessa' Hippodrome Land Plot Sold Out. Again. Hope To See Acteeum. Again

Couple days ago, Odessa State Municipality sold out a land plot, close to hippodrome. As far as we know, this land has been acquired some time ago by Acteeum Group with intention to build a biggest shopping center in Odessa. But there where many problem with that deal those days. I had one bit of info before.

The news stated that new (anonymous!) buyer did pay UAH 73 mln (USD 9.24 mln.) for this asset and Buyer has project drawing. I have no ideas who might be that buyer except Acteeum. I do not believe in such coincidence.  If I am right, we have to expect new retail property in town at the near future.  

Hotel Market Shows Small Recovery

According to Jones Lang LaSalle Hotels, Kyiv hotel market was raised quite substantially during the crisis. Comparing with the previous period of low demand, accommodation increased for 22%.

Average room price at high class hotels in Kiev ("Hyatt Regency", "Premier Palace", "Opera", "Radisson") in 2009 declined approximately for 25% to $ 275. At the same same operational yield in terms of the number in 2009 has decreased by half compared with 2007-2008. And the operating margin - a result of serious efforts to cost cutting - reduced at least for 10%.

Middle class hotels ("President-hotel", "Rus", "Ukraine", "Dnipro", "LYBID") also felt the drop in demand. However, since they had paid attention to consumers of hotel services with reduceed budgets, for now they are pretty OK. As a result, the average price for a room at these hotels decreased with estimation of Jones Lang LaSalle Hotels, from USD90-140 in 2008 to USD50-80 in 2009 with 65-70% occupany.

In 2010, the demand for Kiev hotels quite stabilized, but not fully recovered. Despite the fact that the level of occupancy for upper price range hotels at 1H 2010 grew by 5,6% compared to the same period in 2009, this was only due to lower average prices, which for the same period decreased (in USD) up to 13% to USD220 in June 2010.

According to JLL Hotels, there are two key indicators - the occupancy level and average room rates - showes unstable recovery of demand in the upper price segment within next 5 years. Therefore, according to forecasts, proper investment decisions will focus on middle-price or even budget accommodation properties at CBD or close to.

Kiev Office Market - Absorbtion Rate Is 150% at 1H

According to Colliers International, absorption rate for office space in Kiev grew up to 150% at 1H 2010, comparing with the same period at 2009. The estimated market volume increased to K60 sqm.

In Colliers notes that the increase was due the fact, that companies were moving to higher grade office spaces, as well as companies expanded their presence in the current office centers, where they occupy office space. Most significant figure was the consumption by the financial sector, which rised up to 16%.

Neet to mention, that in Kiev, at 2009, office space demand, showed by the financial sector has dropped significantly because global economic crisis, and reached only 6% of the total number of transactions. Whereas in 2006-2008 share of transactions of the financial sector ranged 35-40%.

Meanwhile, demand for quality office space by large international companies, according to Colliers, is still high, but to satisfy that, it is becoming pretty difficult due to the lack of high-quality office property with large open-space whole areas. There are not enough areas exceed over 2000 which were occupied during 2009 and not presented at the market so far.

My New Challenge

Some of you, perhaps would kile to ask me - where I've been for a while. I have a reason. I'm very busy for now. From Dec 2009 I'm a Chief Operational Officer of ECO Tower - first A-class building in Zaporozhye (approx K800 people here). This is a big challenge for me, not only because Zaporozhye. In current market, to launch brand new property is pretty complicated goal, particularly for the city. The main problem - Zaporozhey has not any experience dealing with investment grade property at all. So, no one know, R/U, OPEX and many other things. But I guess it's just a time issue.


Couple words on my new business. ECO Tower (formerly known as Bayda Business Hall), is first project of well-known Austrian investment group - ECO Business Immobilien. That's public company with project within Austria, Germany, Hungary and Ukraine. The property should be commisioned at summer 2010, so we are very close to the finish line for the moment. ECO Tower is 19-storey office building with 3 retail floors. Total GLA about K11 sqm. There are 2-level underground parking for 92 cars. But greatest advantage is location. We all know "location, location, location". And we are the best one in Zaporozhye. ECO Tower is located in central square of the city, in front of region administration building. Now doubt - this is a best place for commercial building you ever could find.


I'm open for any business contacts, as usual. btw, I'm looking a business contact for corporate apartment hotel opportunity. 15th and 16th floor are great options for that.



So, I will try to back in track with the blog. Keep tuning.