Office segment became the leader on volume of investment transaction. So, in III quarter buy-in on sale by the Dutch developer «Gooioord B.V has taken place.» The portfolio (cumulative GBA ~ 14 000 sq.), consisting of a number of office centres possessed mainly in the central part of capital. The bargain on an asset swap with afterpay БЦ “Horizon Office Towers” (GLA - 13 000 sq.) on the land lot the area of 2 hectares in the central part of a city has been in parallel closed. Thus, in 2008 the total volume of investment transaction is evaluated (at the moment of the conclusion of bargains) approximately in $200 million, that is on $92 million is less, than a total volume of transaction in office segment for 2007.

n a segment of the trading real estate have found the buyers three metropolitan ТРЦ. So, the local company “Davento plc” had been acquired ТЦ “the Alto the Center” (GLA - 17 000 sq.), possessed around metro station “Petrovka”. The British investment foundation “Meyer Bergman European Retail Partners” became new holder ТРЦ “Aladdin” (GLA - 10 200 sq.), the Kiev possessed in a left-bank part in densely populated sleeping area “Poznyaks”. On the left coast of Kiev forward sale ТЦ “Square” on Balzac’s street (GLA ~ 2 800 sq.) where the Ukrainian companies became the buyer and the seller has taken place also. As a result for 2008 in a trading segment it is made investment transaction for the sum of an order $113 million For comparison, in 2007 only one similar bargain at a rate of $200 million has been made, - the British company “London&Regional Properties” has acquired in the middle Kiev ТРЦ “Globe”, the general rent area of an order of 18 600 sq. m.

In comparison with last year the volume of investment transaction in the warehouse real estate has considerably increased - the total volume of transactions in a warehouse segment for 2008 has constituted an order $85 million against $11 million in 2007. Against easing of interest to the Ukrainian market and care in IV quarter 2008 of some West European players (because of losses in the controlling companies connected with a world liquidity crisis) to Ukraine the so-called offshore investors which large part is necessary on Near-Eastern region and the CIS countries began to show practical interest.

Taking into consideration changes of the global economy, new players of the investment market are aimed at acquisition of high-quality assets with significant discount, and some of them are ready to make purchases, without waiting a price bottom, in view of limitation more or less qualitative assets in Ukraine. “Colliers International” - the international consulting company, rendering services in the field of the commercial real estate. Today the company “Colliers International” totals over 11 000 employees working at nearby 300 offices in more than 60 countries of the world, including in territory of the CIS and the Baltic States. In representation “Collіers Іnternatіonal” in Ukraine, based in 1997 in Kiev, works about 60 experts.

“First of all, we expect, sharp reduction of volumes of the perspective offer, because building of those projects that were at early stages of realisation will be suspended”, has declared Radomir Tsurkan, operating partner CB Richard Ellis in Ukraine.

As he said, developers will be focused on those projects which are at present already close to end and which commissioning is economically inexpedient to postpone. Besides, realisation of the future projects will occur in some stages as developers will take a waiting attitude, trying to minimise market risks.

Also the expert says that in the circumstances speculative development has lost the appeal: “In the conditions of struggle for leasers the risks connected with speculative devlopment, are considerably increased, and deficiency of a project financing and a loan capital seller’s price do these risks inadmissibly high”. At the same time, under forecasts CB Richard Ellis because of economic circumstances aggravation, building activity in the regional markets will be suspended.

To the middle of 2010 economic outlook do not instal special hopes, the further development of warehouse sector in regions will be postponed at least for 2009-2010, and the basic attention of developers will be concentrated in territory round Kiev.

Play here in a large way

The market of the country real estate as well as capital room, has not the best times. Actions could be seen that basically the large players moving not by banal six hundred parts, and tens hectares. Sales of small plots under building also are in the bulk made by secondhand dealers. Therefore earth cost, as well as earlier the price of the Kiev apartments, grows at the expense of speculative operations.
As buyers in these transactions end users, and secondhand dealers who try to discover sites with a successful arrangement (near to highways, a good automobile outcome, etc.), for the purpose of their purchase and resale under HUNDRED, warehouse, refuellings act not or division into sites it is less and sales already at retail. In the latter case the hundred part is bought by hectares under the price, for example, to $1000, and after dividing is on sale three times more expensively. But to get on this market, it is necessary to have the solid starting capital, estimated hundred thousand dollars.

The area dictates the price

Ground area cost directly depends on its arrangement. For example, the most expensive, Kievo-Svjatoshinskoe the direction is appreciated that here there is a convenient traffic intersection, beautiful enough nature, a quite good infrastructure. Earth cost here grows constantly though already and “reads off scale”.
And here the Borispolsky area though is in number of leaders under the prices, of such “bonuses” cannot brag. The only thing, than it “takes” the potential buyer, presence excellent бориспольской lines.
The rest it concedes in all to cheaper areas. To take at least the sites located beyond Borispol - journey to morning and evening hours through this city-companion turns to a nightmare of the motorist - stoppers here more rigidly, than in capital.
Under forecasts, the areas adjoining the future district road will grow in the near future in the price. After the announcement of its building of operation of purchase and sale here have grown in times. At what buy up as sites in garden co-operative societies adjoining a line, and ground shares. Under forecasts риелторов, the prices in areas adjoining a new circuitous route at least will not fall, and in separate areas will grow only.

Well and how it to buy?

To buy now the earth for the purpose of the subsequent resale at least it is inexpedient. For the first time for the last couple of years earth cost near Kiev has fallen (see the table). And though this falling is insignificant in comparison with the previous growth - it can become the first call to time stabilization of the price for the earth (and even to falling).
Therefore in any case earth purchase under personal use is better for postponing at least for half a year - for this time cost if will grow, not much more, and here if it falls (as the market of the capital real estate) it at least will be unpleasant.
But there is one more reason, on which ordinary Ukrainian, most likely, cannot buy the ground area in the near future - banks in large quantities reduce crediting volumes, increase interest rates - and it means, that earth purchase by installments becomes practically unreal.
According to deputy director of REA «AliansBrok» Sergey Podgornogo, banks which worked under the program of crediting of the earth, either have essentially reduced loans, or have refused them at all. As informs delo.ua, bankers explain reduction of this product of crediting by problems with reception of state certificates on the earth and risks of object.

Personal experience

There was a good auction
Irina Mykulenko, the businessman:
- In country co-operative society in Brovarsky area we have bought the site two years ago. All this time it stably grew in the price, and its cost has risen more than twice. Still one year ago anybody from participants of co-operative society did not sell the six hundred parts - all waited still more for growth. But now announcements of sale began to appear.
At what of the price about same, as well as last year. And if to consider that sellers also agree to bargain it is possible to draw a conclusion that sites stand today on pair thousand more cheaply, than one year ago. But, despite it. We to sell the plot we do not gather, because it is not known, that will be further with dollar and гривней, and the earth is the earth.

Indicators of the market of the earth in the Kiev area for the last week from 13.10.2008
From 6 on October, 12th cost of the ground areas under cottage building in 11 Kiev areas has decreased for the first time for last year, within 0,17 % ($11) to 6868 dollars for a hundred part

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Up to August, 1 Ukrainian company “Arnica”, which is partner of Alpine, will complete works from adaptation of project to the Ukrainian build norms and will pass it on examination in Ukrderzhekspertiza, MINISTRY of emergency measures, SES and other services. On the question of deputies, as examination can last long, the director of the Ukrainian representative office of “Alpine” Raynkhard Shtokinger pointed that, on the Ukrainian legislation, to 30-45 days, however much he noticed that on condition of maximal support from the side of government terms can it will be be reduced the twice.

Except for that, “part of conciliatory documents on building of stadium is already ready, and that is why in any case from middle of August it is possible to begin to open out a site area, and build works will begin in a month, - the city chairman of Lviv Andrey Sadoviy underlined.

Up to August, 31 Alpine plans also to conduct tenders on subcontractors on all construction-works. Except for that, director Alpine Ukraine of Raynkhard Shtokinger confirmed the term of completion of building - July, 2010. Meantime, to the end of 2008 year austrian builders plan to execute earthmovings and begin establishment of foundation.

Watch stadium vizualization here

This is the first shopping and entertainment complex in the Kvadrat chain that XXI Century is putting together in the regions. Kvadrat will be in the “hypermarket-gallery” format with a food supermarket, a gallery of shops and an entertainment area for both children and adults. The shopping gallery will contain around 70 shops offering goods for the entire family, personal services, bank branches and food court. 

The complex is conveniently located in a district close to the centre on a major road with high density traffic that links the downtown area with outlying residential districts.

Project participants: DTZ, A.Saveliev’s project bureau. (more…)