One Line News - September 29

• The average price for hotel room in Ukraine - USD 300 - Yulia Stefanishina, Ernst &Young
• Cost of land lease in Kiev will be tripled up to UAH 382 for 1 sqm - Kievgorstroy ex-chairman
• Meinl European Land is gong to invest USD 1.2 bln in Ukraine until 2016
• Construction works volume has increased up to 14.5%n in this year
• Lviv authorities will sell 10 land plots for hotel development in 2008
• New retail chain "Miriada" starts from Dnepropetrovsk with first K11 sqm office-retail project at November 1

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.

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
  

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.
  

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.

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

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 Dnepropetrovsk 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 - Alef Estate finished a new office complex in Dnipropetrovsk

Alef Estate (Dnipropetrovsk) built a 14-floor office centre "Prizma" with 8245 sqm. total space. Prizma is located in Glinka str, in Dnipropetrovsk's CBD.

There is retail at 1st floor (360 sqm.) and office premices with different sizes: from 85 up to 440 sq. each with full communication options.

The 2 speedy elevators serve the building. There are full autonomy HVAC services, video control, security, of course. Construction of the complex was 3 years.

Short news - Investors believe in Kiev

63% of the asked investors believe that Kiev has the greatest potential and the most attractive investment climate in Ukraine.

This is stated in the study conducted by the Institute of Adam Smith. 11% of total investors believe the most attractive is Donetsk, 10% Dnipropetrovsk, 5% - Kharkov, 4% - Lviv, 3% - Odessa. Other regions got 5% of the votes.

Investors also consider real estate as the most attractive sector for investment in Ukraine with 44% share. The second place - retail (15%), followed by financial services (13%) .

The study was conducted in February, surveyed 250 representatives of foreign and Ukrainian companies. The Adam Smith Institute, is a non-profit organization.

LOGOS opened new shopping centre in Dnipropetrovsk

Dnipropetrovsk-based LOGOS company has constructed and leased multifunctional city shopping center. Company CEO Borys Balynskyi disclosed this at the opening ceremony.

"During drafting of the construction project, we paid considerable attention to provision of wide range of goods, services and entertainments at the centre to satisfy needs of the whole family and each person as well," he said.

One-floor retail part of the centre consists of Furshet supermarket with the total space over 3,000 sqm, Smik children supermarket, Brocard cosmetic and perfume supermarket, Intertop shoe store, entertaining zone with food court, and many other shops.

Seven-floor tower have B-class office premises, with 5,497 sqm. space and 600-car parking is located near the center. The total centre area is 25,585 sqm and shopping space is 12,737 sqm.

LOGOS corporation, which is registered as a limited liability company, also includes the First National Winemaking Holding. The holding unites the following producers: Inkerman winery (Crimea, Sevastopol), Tavria agro-industrial firm (Nova Kakhovka, Kherson region), Chornomorets agricultural firm (Crimea), Winemaking Institute (Dnipropetrovsk), and Kachynskyi+ primary winemaking factory (Crimea).

Minister of Transport wants a money for roads construction again

Rudkovski wants investments from Citybank to the Ukrainian roads. My old readers should to remember my post about negotiations between Nikolay Rudkovsky, Minister of Transport of Ukraine and French companies. Who doesn't remember, read it here.

So if I got it right , they agreed to develop cooperation in this field. And now there is new message related with American Citybank. Are we changing our priority or there are other reasons? Business?

American City Bank will consider the proposal of the Minister of Transport and Communication of Ukraine on the road development in Ukraine. According to the Minister of Transport and Communication of Ukraine Nikolai Rudkovsky, calling to international banks for the construction of roads is motivated by that the State does not have enough money to pay for construction in the near future of the road network of European quality.

Among the priorities for Ukraine Nikolai Rudkovsky stated Kiev-Lviv, Lviv-Lugansk, Kiev-Odessa, a ring road around the Kiev and 1st category roads from the East to the South, Dnepropetrovsk-Odessa. "The traffic on those roads, and even on their single section may vary significantly", the Minister said. - "We have to calculate all the details, and a mechanism by the government compensation of insufficient traffic".

According to the managing director of the public sector department of Citygroup in Central Asia and Eastern Europe, Middle East and Africa Kathy Pointer, the best option is to cooperate with single company: when contractors, which will build the road will also operate it. "In this way, they will be responsible for the quality of roads built," she believes.

So the meeting' result that further detailed study of Citybank priority for Ukraine ways for the roads construction and offer this to the Ministry of Transport and Communications.

Karavan group goes further

Karavan group of companies is going to increase the number of its shopping centres up to 15 until 2010.

In current year, Karavan plans the opening 1st part of new shopping and entertainment centre in Dnipropetrovsk, and start the construction more than 10 others to increase their total amount up to 15. For that purposes the company has 12 land sites already in Ukraine. And they are going to get more, especially in Eastern regions of Ukraine - Donetsk and Lugansk.

So, they want to become biggest retail chain in Ukraine. Intends are big, let see on moving on.

“Privat” group, Dnepropetrovsk, is going to set up a construction holding based on “Aerobud” company

The shareholders of Kiev based Aerobud company agreed on the establishment of branches in Dnepropetrovsk, Kharkov and Odessa. This step gave a reason to speak, that the Igor Kolomoiskiy, co-owner of Privat seeks to strengthen its position in the future construction and development market.

Recently Aerobud has been a leader in monolith construction technology and several years has been very widely presented in the market, getting the prestigious orders regularly. For example, the redevelopment of the Borispil airport, hotels Ukraina, Russia and Turkmenistan embassies, hotel Oreanda in Yalta and many other. But now Aerobud almost lost among the many companies working on Kiev market. So, the decision to go to regions where the volume of construction has steadily increased, could compensate for the failures the former flagship.

Most likely, the increase activity in the company related to its coming under Privat umbrella. As for November 1 2006, the nominal holder of 99.99% stake became Privatbank, and in December of last year, shares of the construction company approximately equally distributed among well-known Privat offshores: Ballioti Enterprises LTD, Melchett Invest Limited, Geveld Holdings INC, Ravenscroft Holdings Limited and Mortondale Assets Limited.

The need to come seriously into this business, Igor Kolomoiskiy faced with stadium construction in Dnepropetrovsk for the his football club , they say.

Likewise, set up of industrial holding, which will in construction market is very timely, and, given the Privat ambitions makes sense starts with capital company.

Alef Estate is going to build new commercial property complexes in Dnipropetrovsk in 2007

Alef Estate is going to build new commercial property complexes in Dnipropetrovsk in 2007

Ukrainian News

Alef Estate, a Dnipropetrovsk-based property development company, will start construction of a shopping and business center called Brama and a multifunctional complex called Kaskad Plaza in Dnipropetrovsk in 2007.

The Kaskad Plaza complex is fundamentally a new facility for Dnipropetrovsk. The combination of style and comfort in it exceeds the standard requirements for the deluxe level.

The company plans to start construction of the 48-storey Brama shopping and business center with an area of 129,900 square meters and the Kaskad Plaza elite multifunctional complex with a total area of 64,515 square meters in downtown Dnipropetrovsk in 2007.

The first six floors of the Brama shopping and business centre will house shopping and parking space while the remaining floors will be residential space.

The Kaskad Plaza will be a 13-storey building plus three parallel 5-9 residential blocs will consist of a 4-storey platform (in which supermarkets, boutiques, restaurants, a casino, discotheques, and parking lots for the residents of the complex will be located).

The roof of the Kaskad Plaza will serve as a backyard of the residents of the complex.

Alef Estate also plans to start construction of a multifunctional complex with residential (7,423 square meters), shopping (190 square meters), and office (7,192 square meters) space plus a bank (2,960 square meters) on Shevchenko Street in 2007.

Construction of each of these facilities is expected to last three years.

The company plans to commission a 14-storey business center called Prizma (with a total area of 8,245 square meters), a 23-storey mega-complex called MOST City with a shopping and entertainment center, luxury apartments, and parking lots (a total area of about 116,000 square meters), and an automobile sales and service center called Drivers City (13,712 square meters) in 2007.

In 2005 and 2006, the company built and commissioned the Magnat shopping and business center with an area of 1,956 square meters, the Bosfor shopping and business center with an area of 14,128 square meters, a commercial complex an area of 2,960 square meters on Zaporizhia Highway with, and a complex with an area of 1,480 square meters on Myronova Street.

Alef Estate is one of the largest construction companies in Dnipropetrovsk.