EDITORIAL

Commercial Property Special Edition Guide to Ukrainian Real Estate Market 2021 Founder and Publisher: UCMGroup LLC Project Manager: Tetiana Antoniuk Commercial Director: Yulia Adeyeva, [email protected] Sales Department: Vitalii Sakhno, [email protected] Editorial materials: Tetiana Antoniuk, Oksana Babenko, Lucia Bondar, Victor Nahorskyi, Tetiana Khomiak, Maryna Paraliush For subscription contact us: [email protected]

Forward your press releases to: Dear Readers! [email protected] Forward your journalistic materials and propositions to: [email protected] Last year, the annual catalog from the publishing house CP PUBLISHING, Web-site: www.commercialproperty.ua “Guide to Ukrainian Real Estate Market”, was published before the pandemic in our country and the introduction of quarantine. Now, this edition, as well Legal support: Antika Law Firm as in 2020, comes out in the period of another tightening of restrictions. This year’s “Guide” is prepared in a slightly updated format. Unlike Editorial Address: previous issues, we changed the headings, grouping articles by the real 01030 Kyiv-30, Ukraine estate sectors. However, as before, the mission of the publication is to p/o box 94 become a valuable and most comprehensive source of information on the Cover: innovation park UNIT.City (Kyiv) situation in the Ukrainian commercial real estate market. It presents reviews Photo: Ivan Avdeenko of the offi ce, retail, hotel, and warehouse sectors of Kyiv and the largest and most active regional markets of Ukraine: Kharkiv, Dnipro, Odesa, Lviv. © UCMGroup LLC The editorial materials cover key trends, events, results of the last pandemic year, and forecasts for the near future from the market players, etc. Special emphasis is placed on investments, key legislative changes in urban © Guide to Ukrainian Real Estate Market is published yearly by UCMGroup LLC. planning, and the fi eld of architectural and design services. Although the Publisher tries to make The COVID-19 pandemic has shown how both global and narrow our an information as accurate as possible, world is. Global means how broad and fast the virus has spread, and he accepts no responsibility for any loss, injury or inconvenience sustained by any person narrow means the forced restrictions we all face: from closing borders to using this magazine. Views expressed in this isolation. In this unusual and diffi cult period, the real estate market players magazine do not necessarily reflect the opinion adapted to new conditions, continued to build, open, and plan new projects. of the Editorial Team or Publisher. No part Traditionally, the “Guide” contains two parts, which provide information of this publication may be reproduced, stored in a retrieval system or transmitted in any form about the companies working in the real estate sphere and their services, by any means without written permission of as well as about the market supply: fi nished and future real estate projects. the Publisher. Advertisers are solely responsible We are grateful for your cooperation and loyalty! We believe that new for all claims based on nonavailability or opportunities and prospects await us! nondelivery of merchandise appearing in this publication.

Tetiana Antoniuk, Project Manager

CONTENTS

8 ANALYTICS

8 INFOGRAPHIC

10 OFFICE REAL ESTATE 10 On the Way to Change 12 Offi ce Property in Kyiv: under Mild Stress 14 Kharkiv Offi ces: Using Old Resources 16 Dnipro Offi ce Real Estate Market Caught a Wave of Growth 18 Offi ce Real Estate in Lviv: Reality of 2020 and Expectations for 2021

20 RETAIL REAL ESTATE 20 Year of Restrictions 22 Kyiv Retail Property: to Withstand the Crisis 24 Retail Real Estate of Kharkiv: on the Threshold of Change 26 COVID Fluctuations: Review of the Dnipro Shopping Malls Market in 2020 28 Shopping Malls in Odesa: is the Market Put on Hold?

30 HOTEL REAL ESTATE 30 Fighting and Surviving 32 Kyiv Hotel Market: Super Complicated 2020 34 Hotel Market in Odesa: New Reality in Terms of Figures 36 Hotel Real Estate in Lviv: Results of 2020

38 WAREHOUSE AND LOGISTICS REAL ESTATE 38 Without Pandemic Fever 40 Warehouse Property Market in Kyiv and Kyiv Region: Results of 2020 42 Warehouses & Logistics: Lviv Region Market Review

44 INVESTMENTS Real Estate Investment in the Time of Coronavirus Article by Alexander Nosachenko, Managing Director of Colliers Ukraine

48 LEGAL Quarantine Year of Urban Planning Reform Article by Alexander Burtovoy, Partner, and Vasyl Sheretko, Senior Associate of Antika Law Firm

52 ARCHITECTURE & DESIGN Slava Balbek: “Architecture is Music, but Each Architectural Solution must be Logical” Interview of the Founder of balbek bureau

59 COMPANIES

81 PROJECTS / NEW SUPPLY

97 BUSINESS CARDS 8 INFOGRAPHIC KYIV REGION KYIV UKRAINE Source: StateStatisticsCommittee of Ukraine, allstatistics are for2020 116% UAH 97.8% UAH 104% UAH -4% UAH 12.6 42.87 199 4194.1

billion

billion

billion

billion Index ofexecuted constructionworks Volume ofexecuted constructionworks Index ofexecuted constructionworks Volume ofexecuted constructionworks Index ofexecuted constructionworks Volume ofexecuted constructionworks Real GDPfall Nominal GDP 9 INFOGRAPHIC

KHARKIV REGION

UAH14.35 billion Volume of executed construction works

92.2% Index of executed construction works

DNIPROPETROVSK REGION

UAH17.75 billion Volume of executed construction works

84.9% Index of executed construction works

ODESA REGION

UAH27.92 billion Volume of executed construction works

145.8% Index of executed construction works

LVIV REGION

UAH14.14 billion Volume of executed construction works

122.3% Index of executed construction works 10 ON THE WAY TO CHANGE New trends caused by the coronavirus pandemic, in particular the shift of some businesses to remote work, have changed the current situation in the offi ce property market and pushed this sector to some changes.

REORGANIZATION OF WORK decrease in rental activity was observed PROCESSES during the spring lockdown. It recovered Remote work format is the main trend partly with the easing of restrictions.

OFFICE REAL ESTATE in the offi ce property market, which was In general, as for the categories of tenants caused by COVID-19. Since the beginning that were the most active last year, this of quarantine, a lot of companies have was primarily the IT sector. adapted to work in the pandemic, setting up operational processes based on the DISCOUNT PERIOD new realities. Depending on the specifi cs The introduction of quarantine initiated of the activity and corporate policy of a dialogue between landlords and tenants each company, now, work schedules to ease the lease terms. Therefore, as of and fl ows are divided as follows. Some 2020 year-end, rental rates for offi ces tenants visit offi ces as usual as possible, in key property markets of Ukraine as they did before the pandemic. Others decreased by 10-15%. Business center implemented a hybrid work model. owners compromised, for example, Some companies operate almost entirely by deferring payments or providing remotely, and right this attracts the most discounts. The main period when attention as a trend that will lead to landlords made concessions was the fi rst changes in the offi ce property segment. spring lockdown. Some of them provided Market players are sure that it will be an discounts up to 70% depending on the incentive for further reorganization and contract terms, and some, conversely, did adaptation of work processes and offi ce not change the price. As for discounts, areas. For example, in big cities, the model landlords determined their size individually, is projected to grow in popularity with analyzing how much a particular business a smaller head offi ce and several satellite suff ered from the pandemic as well as offi ces near major residential centers. the business relationship with a partner, Demand for the hot-desking format, i.e. opportunities for further cooperation, the use of the same workplace by diff erent etc. These actions and loyal approach, employees at diff erent times, is also in general, allowed maintaining expected to increase. Also, the pandemic a signifi cant pool of tenants. Currently, has already resulted in the reformatting of the practice of discounts is almost non- large and open spaces to minimize staffi ng existent. As for the new agreements, and comply with the rules of social there are examples of contracts when the distancing. parties prescribe special conditions for the period of inability to use offi ce space. RENTAL ACTIVITY As was expected, in the current crisis, the NEW REQUIREMENTS main offi ce property markets in Ukraine Currently, there is a greater demand for suff er from an increase in vacancy. Trends smaller offi ces, fi nished premises, which that caused this were the launch of new require minimal additional investments from projects, the abandonment of leased tenants. They are also interested in safety premises or their reduction, in particular issues. Now, in particular, more attention due to the remote work format, reduction is being paid to air purifi cation, ventilation, of take-up of offi ce premises. Thus, in 2020, and air conditioning systems. Business given the instability and unpredictability of centers have already become accustomed the situation caused by the coronavirus, to such measures as thermometry and companies paused negotiations and enhanced antibacterial surface treatment, postponed lease plans. The strongest installation of contactless sanitizers. 11 OFFICE REAL ESTATE

In the photo: business center City Garden, Kyiv PROVIDED BY FORUM PHOTO 12 OFFICE PROPERTY IN KYIV: UNDER MILD STRESS 155,000 m2 of new supply that entered the Kyiv offi ce property market in 2020 led to an increase in the vacancy rate to 11.5%. It took place amid the decrease of take-up of such premises. But the players of this property sector believe that offi ces will be in demand with tenants despite the uncertainty that still prevails in the market due to the pandemic and the remote work as one of its consequences. OFFICE REAL ESTATE NEW SUPPLY Platforma (19,800 m2 GLA) on Korolenkivska Street, According to the consulting company Colliers Ukraine, Avenue53 (16,700 m2) on Peremohy Avenue, FORUM 16 business centers totaling 155,000 m2 GLA were put Infi nity (over 8,740 m2 GLA) on Saksahanskoho Street, and into operation in Kyiv in 2020 (in 2019: 104,000 m2). In others. particular, the A-class segment grew up by 28,000 m2, Interesting to mention that, according to consulting and the B-class sector – by 126,600 m2. As a result, the companies, about 230-250 thousand m2 of offi ce space total supply of professional offi ce premises reached was to open in Kyiv last year. Therefore, the full-year new 2,147,000 m2 (+7.7% in 2020) in the city. Among the supply was approximately 1.5 times less than announced. new additions were M8 Business Center (11,014 m2 GLA) located on Moskovska Street, GRAND (8,782 m2 VACANCY GLA) located on Velyka Vasylkivska Street, HILLFORT Changing workfl ows due to remote format has led to Business Mansion (8,550 m2 GLA) on Mykhailivska Street, a reduction by some companies of leased areas within their business centers, to a change of location, or abandoning the offi ce at all. However, this did not aff ect the vacancy in the Kyiv market, which increased above all due to the signifi cant volume of new supply. According to Colliers Ukraine, the total share of vacant premises in business centers of classes A and B increased from 7% in early 2020 to 11.5% at the year-end. In particular, vacancy in A-class business centers increased from 4.5% at the beginning of the year to 10.8% at the end of December 2020, and in B-class projects, it increased from 7.9% to 11.7%, respectively. Compared to other crises, for example, during the fi nancial crisis 12 years ago, the vacancy increased from 1% in 2007 to 17% in 2008, and with the beginning of Russian aggression, this index increased from 15% in 2013 to 20% in 2014. Regarding specifi c examples on the market, in the business center Gulliver, in particular, the vacancy rate stood at about 1% at the beginning of spring 2020, and it increased to 1.8% at the year-end. As the management company of this project informed, during the lockdown period only one tenant reduced the area it occupied, another did not renew the contract as a permanent physical offi ce was no longer required. In the projects of Araks Group, which manages two business centers in Kyiv, the vacancy rate did not change until November 2020 and stood at 1%, but in the last month of autumn, this fi gure undramatically increased to 4%. The company FORUM, which owns and operates 14 business centers in the capital, admitted that the share of vacant premises

PHOTO PROVIDED BY NEST PHOTO in its projects increased slightly, but did not exceed the In the photo: business center HILLFORT Business Mansion, Kyiv forecast level. 13

MAJOR BUSINESS CENTERS PLANNED FOR DELIVERY IN KYIV IN 2021 OFFICE REAL ESTATE

Name Address GLA, m2

MAG.NETT (1st phase) 137-139, Velyka Vasylkivska Str. 44,000

LUWR 2/10, Y. Illenka Str. 27,000

Business center on Olenivska Str. 23, Olenivska Str. 21,000

UNIT.City, campus B15 3, Dorohozhytska Str. 7,500

Source: Colliers Ukraine, CP

Class C suff ered the largest losses among offi ce Horizon Offi ce Towers were banks, large international projects of the NEST company. The occupancy rate of projects, funds, etc. In 2020, new contracts were signed such locations was 87% last year. The higher vacancy in in the business centers of Araks Group with the law this segment is explained by the fact that such business and insurance companies, metallurgical companies, centers had tenants that worked in the entertainment construction materials manufacturing companies, etc. industry, which reduced occupied areas more than others. Industrial and insurance companies, medical companies, B-class business centers were 95% full. And the A-class security systems developers joined the FORUM chain of business center HILLFORT Business Mansion, which the business centers. The company also noted that it attracted company launched last year, is 100% leased. IT players from Belarus as its tenants. Offi ce leasing activity decreased in 2020 in Kyiv. The strongest downfall was observed during the spring RENTAL RATES lockdown. In line with the easing of quarantine restrictions, The rental price for offi ce premises decreased in Kyiv in naturally, it recovered. The 2020 full-year take-up of 2020. According to Colliers Ukraine data, the maximum offi ce premises amounted to about 100,000 m2 (in 2019: base rate slid by 15% to US$26/m2/month (VAT and 131,000 m2). The market players admit that the spaces operating costs excluding). that required minimal additional investments into offi ce It should be noted that last year landlords provided fi t-out were more in demand with tenants. Interesting that temporary discounts to tenants or (very rarely) released they were also focused on large premises. Iryna Kruppa, them from paying rents. The main period when landlords General Director of the business center and shopping off ered concessions was the spring lockdown. Currently, mall Gulliver, confi rmed these trends: “Before the the discounts are almost non-existent. After all, if in introduction of quarantine restrictions, rental activity at March-May 2020 there were ‘levers’ to reduce the rental Gulliver was quite high. Often we could not satisfy the payments due to lockdown and its negative impact on a requests of potential partners because we did not have a large number of businesses, then with the weakening of suitable supply (companies were interested in 700+ m2 lots). quarantine such concessions were over. The number of inquiries and viewing appointments resumed at the end of September, and demand remained stable at the FUTURE SUPPLY end of December 2020, in particular for ‘turnkey’ offi ces.” Due to the still unstable situation caused by the coronavirus As for the categories of tenants that were the most pandemic, the Kyiv offi ce property market will suff er active, this was primarily the IT sphere. It had the largest from mild stress for some time, unless, of course, new share in the structure of total take-up in 2020, accounting unpredictable signifi cant factors arise. The development for 54%. For example, nine contracts for an area of more activity will decrease: some of the future offi ce centers will than 2,000 m2 were signed at the business center Gulliver be postponed, this primarily applies to projects with minimal last year, all of these deals were made with IT companies. readiness. However, the construction of the business centers Also, during the last year, several large lease announced for 2021 continues. In particular, according to agreements were concluded with companies in the energy Colliers Ukraine, the forecast new offi ce supply in 2021 sector, they accounted for 18% of the total take-up of offi ce amounts to approximately 200,000 m2; expected completions premises. As Colliers Ukraine informed, FMCG companies include MAG.NETT (1st phase) and LUWR business centers, and professional services providers, including coworking B15 campus in the UNIT.City innovation park, and some operators, were also active renters in 2020. others. In general, about 350,000 m2 of the offi ce property is However, these are not the only active sectors. For currently under construction with the prospect of putting it example, among the new tenants of the business center into operation over the course of the next few years. 14 KHARKIV OFFICES: USING OLD RESOURCES

Due to the diffi culties caused by the COVID-19 pandemic, the launch of part of the offi ce real estate projects that was planned in Kharkiv in 2020 was postponed. As a result, about 35,000 m2 of new supply was put into operation in the city last year. Although that volume can be called a record for the offi ce market in Kharkiv, which has shown a fairly low growth in recent years.

NEW SUPPLY average rental rate amounted to $12-13/m2/month as of In recent years, Kharkiv has shown relatively low volumes of the end of last year, while at the beginning of 2020, the 2

OFFICE REAL ESTATE new offi ce real estate supply. And many of the projects that price reached $16-17/m /month (VAT and operating costs have been opened are either small in size, or renovation of excluding). The only exception was the premises on the old buildings, or long-term construction. Reconstruction of ground fl oor of the building, which the company invariably old administrative and industrial facilities (administrative leased for $22/m2/month (VAT and operating costs institutions, former factories, plants) into offi ce projects is excluding) both before and after the lockdown. However, one of the main trends in this market, according to the during the spring hard quarantine period, the price didn’t consulting company Colliers Ukraine. It’s data state that go unnoticed: the rate for keeping tenants in this facility the total volume of professional premises in Kharkiv which was reduced by 50%. belong to classes A and B is about 167,000 m2. That is a And in the Home section of the IT-park Manufactura signifi cant contrast against the background of the fact project, for example, at the end of last year, offi ce spaces that the total supply of offi ce real estate in the city reaches could be rented for $16-20/m2/month (VAT including, almost 850,000 m2, according to the investment and operating costs excluding). “The section Home in the consulting company Proconsul. IT-park Manufactura was commissioned in early 2020. In 2020, the construction of four projects was The quarantine period went with the active phase of offi ce completed in Kharkiv. In particular, the Diamond City renovations, so we managed to keep the balance of rates A-class business center (24,700 m2 GBA, 17,750 m2 offi ce even during the crisis,” said Yehor Maslennikov, Founder GLA). Also, as stated by Proconsul, two new projects of B of Stroy City Development, which is the developer of this and B+ classes entered the market last year; they were project. respectively UM-INVEST (almost 7,900 m2 GBA, 5,900 m2 GLA), which was developed by the same name company VACANCY RATES UM-Invest, and the fi rst building of the IT-park Manufactura As expected, the share of vacant premises in the called Home (about 7,500 m2 GBA), developed by the Stroy office real estate market of Kharkiv increased during City Development company. Furthermore, Rotunda Hall the current crisis. In the time of the hard spring (4,950 m2 GBA, 4,240 m2 GLA), which belongs to A-class, quarantine in 2020, its level grew up from 2% to 10% according to its developer – the Rotunda Hall company, in business centers of A and B classes, as reported was put into operation in the city. by Proconsul. According to the company’s data, some However, Andrii Mochenkov, Commercial Real recovery in demand was observed in summer, but at Estate Investment Expert at Proconsul, says that the the end of the year, the vacancy increased again and pandemic has negatively aff ected the pace of construction reached 20% in some business centers in December. and commissioning of most of the facilities planned Meanwhile, the major centrally located office projects for 2020. Therefore, the launch of some of them was of Kharkiv had just 0-5% of vacant spaces, as reported postponed to 2021. by Colliers Ukraine. According to market players, last year, the RENTAL RATES representatives of small businesses and, of course, the According to Proconsul, last year, the average range of the IT sector, which remains the most active tenant of offi ce base rental rate in business centers of A and B classes spaces, showed interest in renting premises. Online in Kharkiv amounted to US$9-18/m2/month (VAT and retailers, clinics, laboratories, language schools, and operating costs excluding). In C-class facilities, this fi gure small service providers were also willing to take up such varied from US$6 to US$10/m2/month (VAT and operating spaces. costs excluding). As compared to the beginning of the year, the average rental price for the offi ces of A and B FUTURE OFFICE OPENINGS classes decreased by 12% as of the end of 2020. However, The future supply of offi ce real estate in the city is made there was no massive decline in this indicator, and in some of mainly ‘old resources’, i.e. projects the development of facilities, the level of rates remained unchanged. which lasts for years, which have been suspended and For example, in the business center Space Hall, the resumed. So, one can say that there are almost no new 15 OFFICE REAL ESTATE PHOTO: IS PHOTO: In the photo: business center Diamond City, Kharkiv

BUSINESS CENTERS PLANNED FOR DELIVERY IN KHARKIV IN 2021-2022

Name Address GBA/GLA, m2

Imperial Grand MUC Klochkivska Str./Kosmichna Str. 28,070/7,500 (office space)

Elysium Plaza SOC 24D, Haharina Ave. 18,000/15,000

Voomy IT-park 138A, Moskovskyi Ave. 11,000

Solomon BC 28, Marshala Bazhanova Str. 10,000/9,000

Matrytsia BC 4, Serpova Str. 7,600/5,160 (office space)

IT-park Manufactura block Next 14,665 13, Y. Chyhyryna Str. block Place 6,530 block Space 3,690

Source: Proconsul names in the market. In particular, as Proconsul informs, work, conference, and lounge zones within an area of the category of long-term construction includes Elysium 13,000 m2. In 2019, an IT factory, which is a reconstruction Plaza, Solomon, Imperial Grand (formerly known as of the exhibition center building and combines an IT- Kovcheh), Voomy IT-park, etc. school, co-working spaces, and club offi ces, was opened This year, Stroy City Development plans to put within UNIT.Kharkiv. into operation several more buildings of the IT-park The largest development project in the city is the Manufactura project, which will feature retail and B+ class redevelopment of the territory of the Kharkiv Tractor Plant, offi ce spaces. This project is just one of the new names in which was announced by the DCH group; that is where the market. the Ecopolis HTZ industrial park will be located. As part Also, the future supply in the city includes the UNIT.Kharkiv of it, it is planned to implement the Ukrainian Silicon Valley innovation park, which is developed by UDP, the company project, which will be based on a multifunctional business that stands behind the UNIT.City innovation park in Kyiv. park. However, specifi c data on the volume and timeline The Kharkiv project is planned to combine educational, of the construction have not yet been reported. 16 DNIPRO OFFICE REAL ESTATE MARKET CAUGHT A WAVE OF GROWTH In the coming years, the offi ce real estate segment of Dnipro may grow signifi cantly: currently, several business centers of diff erent scales are being built in the city. These modern projects will improve the quality of supply and change the balance of power in this market.

MARKET INCREASE reached 404,000 m2 in Dnipro as of the beginning of 2021,

OFFICE REAL ESTATE Over the last two years, in 2019-2020, the Dnipro offi ce which corresponds to a market saturation of about real estate market became more active. During this 404 m2/1,000 citizens. Meanwhile, according to the time, several business centers were opened and even consulting company Colliers Ukraine, about a third of more future projects were announced. The new and the total supply, namely 124,000 m2, is represented by future supply covers both small and large-scale offi ce professional business centers of classes A and B. buildings for the city; some of them will replace obsolete constructions and enrich the architectural landscape of RENTAL RATES AND VACANCY Dnipro. According to the market players, there was a modest Comparing the last two years, 2019 was more increase in demand for A- and B-class offi ces in Dnipro 'productive' in terms of opening new offi ce projects than before the quarantine. “Tenants paid attention to the level 2020. Thus, the market added over 30,000 m2 of such of fi nishing materials, interior space design, infrastructure premises in 2019. The largest project was the shopping of a business center (related services), quality of a facility and offi ce center Kudashevskyi on Barykadna Street; in general. There was a stable demand for 100+ m2 offi ce it features 20,300 m2 GLA. Furthermore, several more spaces before the quarantine in March 2020,” says facilities were opened during this time, their area varying Arthur Vanian, General Manager at Joint Industrial approximately from 1,500 m2 to 3,500 m2. Park, which owns offi ce real estate of classes B and C in The volume of the new supply was lower in 2020. Dnipro, in particular the business centers Citadel-1 and According to the consulting company UTG, the major Citadel-2, the project of the business center FRANKLIN, offi ce projects that opened last year were FABRIKA other offi ce and administrative buildings, as well as offi ce (10,800 m2 GLA) located on Barykadna Street and spaces in the shopping and entertainment center Pixel Plaza (4,245 m2 GLA) located on Lyvarna Street. NEO PLAZA. Thus, as stated by UTG, the total offi ce leased area However, as in the other real estate markets

In the photo: business center FRANKLIN, Dnipro VISUALIZATION: JOINT INDUSTRIAL PARK VISUALIZATION: 17

MAJOR BUSINESS CENTERS COMPLETED OR PLANNED FOR DELIVERY IN DNIPRO IN 2021 OFFICE REAL ESTATE

Name Address GLA, m2

ARENA TOWER 4, Kostomarivska Str. 12,000

Comfort City P. Orlyka Ave. 7,075

MADISON 49, Shevchenka Str. 3,741

FRANKLIN 16, Stoliarova Str. 2,880

Source: ABV Estate, Joint Industrial Park, UTG in Ukraine, in Dnipro, the demand of tenants for offi ce period individual discounts were provided to tenants spaces has changed somewhat due to the pandemic. As who were forced to suspend activity amid the restrictive Arthur Vanian says: “Dnipro has tangibly responded to measures imposed by the government to prevent the the coronacrisis impact, if compared, for example, to Kyiv. spread of COVID-19. Now, fi nancial terms are more important for tenants. Smaller offi ces became more in demand when the FUTURE PROJECTS quarantine was introduced, and a certain percentage of Judging by the recently completed, current, and companies relocated to cheaper and smaller premises.” announced projects, the most active developers in For example, language and IT courses and coworkings the Dnipro offi ce real estate market are Alef Estate, were forced to signifi cantly reduce offi ces or temporarily Vertex Group, ABV Estate, etc. The development activity suspend activity. in this segment continued despite the diffi cult year However, the trends caused by the coronacrisis of 2020. At the beginning of this year, the business (e.g. distant work format) did not lead to dramatic center MADISON on Shevchenka Street entered consequences – the vacancy in the offi ce real estate the market. And now, according to Colliers Ukraine market in Dnipro was not critical. According to estimations, several projects with a total leasable area Colliers Ukraine, the share of vacant premises in A- and of about 50,000 m2 are under construction. In particular, B-class facilities did not exceed 10% as of the end of the development of the business center Comfort City Q3 2020. Joint Industrial Park, for example, was able to on P. Orlyka Avenue continues. Also, the future offi ce maintain the occupancy of its facilities over the past year real estate supply in Dnipro includes business centers through relocations, as well as new agreements with ARENA TOWER on Kostomarivska Street and PSHKN on those seeking to improve rental conditions. In general, Lypynskoho Street, the administrative and offi ce complex during the pandemic, it signed contracts with companies on 25, Naberezhna Peremohy Street. And Joint Industrial working in the retail, logistics, and IT sectors. The latter, Park is renovating a building on Stoliarova Street, which as stated by Colliers Ukraine, has been one of the leaders will become a business center called FRANKLIN when in terms of take-up of offi ce premises in Dnipro. Last year, the works are completed. most IT enterprises continued to rent offi ces, even though Alef Estate, a developer from Dnipro, will signifi cantly a certain percentage of employees worked remotely. "We expand its portfolio. Last year, the company, which owns can forecast that players in this sector will gradually several commercial facilities in the city, announced return to normal starting from March 2021, provided that two projects at once. So, in April 2020, it began the the pandemic situation stabilizes,” said Arthur Vanian. construction of the shopping and business center Regarding rental rates, in 2020, the premises Perekhrestia, which will become a part of the mixed-use in business centers of classes A and B in Dnipro were complex Brama in the future. The construction of this off ered in a fairly wide range – US$6-20/m2/month. The project was supposed to begin in 2008 but was postponed lower price, for example, was typical for those projects that due to the crisis. This complex provides for two 5- and were under construction. Joint Industrial Park, analyzing 17-storey buildings, their fi rst fl oors will be occupied the dynamics of rental rates in its projects in Dnipro last by retail premises, and the others will be allocated for year, noted that they did not change much. In particular, offi ces. Perekhrestia is announced to be completed in the pre-quarantine period at the beginning of 2020, the in 2023. Another project that Alef Estate launched last price averaged US$10/m2/month (VAT and operating costs year is the mixed-use complex Ermolaev Center. It will excluding) in B-class business centers, and at the end have three towers of diff erent heights, two of which of 2020 it decreased to US$9/m2/month. Besides, Joint will contain offi ce spaces. The completion of this project Industrial Park noted that during the severe quarantine is scheduled for 2024. 18 OFFICE REAL ESTATE IN LVIV: REALITY OF 2020 AND EXPECTATIONS FOR 2021 The players of the Lviv offi ce real estate market, who faced a growing vacancy due to the coronavirus pandemic, hope to see the recovering demand for such premises in 2021. However, the existing business centers are contesting for the tenants not only among themselves – new spaces for rent are to open in the city in the nearest future.

MARKET SIZE in general, 50% of companies continued offi ce operations

OFFICE REAL ESTATE High demand with a small amount of quality premises in the market. The quarantine has made many businesses provided favorable conditions for investors and developers realize that they can operate remotely, yet being just as of offi ce real estate in Lviv. Therefore, both new projects eff ective. Therefore, in this situation, some companies gave and the projects for reconstruction and expansion up leased offi ce space. Requests from potential tenants of existing buildings were scheduled in the market. also declined signifi cantly. 70-80% – this was the estimated However, over the past few years, this has not led to a decrease in demand according to Lesia Tychynska, Head signifi cant increase in supply. As of early 2021, according of Lease Department of OPTIMA-PLAZA. to the consulting company Cushman & Wakefi eld in Prior to quarantine and the negative trends caused Ukraine, the Lviv offi ce real estate fund was estimated by it, the vacancy in the Lviv offi ce real estate market at approximately 312,000 m2 of the total leasable area was extremely low. According to the consulting company or 414 m2/1,000 persons. If we consider the spaces CBRE Ukraine, in 2019, the share of prime vacant spaces built speculatively for further lease and/or marketed as was 2-3%. In 2020, the vacancy increased approximately business centers only, the total offi ce real estate market 3-5 times compared to the pre-quarantine numbers. is about 207,900 m2 GLA or 275 m2/1,000 persons of the “Even in the class A business centers off ering the best offi cial population. architectural solutions and engineering equipment, there In 2020, the new supply was about twice less than were vacant spaces,” Arman Sarkisian notes. expected. Thus, according to Cushman & Wakefi eld in As a result, the balance between landlords and tenants Ukraine, the company Intergal-Bud opened the shopping has changed, as it did in previous crisis periods. First and and offi ce center Semytsvit on Shevchenka Street and the foremost, it aff ected the rates. Most landlords off ered business center Bank of Business on Hnatiuka Street last concessions and discounts for a certain period of the year in Lviv, the cumulative leasable area of these facilities lease. According to Cushman & Wakefi eld in Ukraine, is approximately 9,300 m2. The business center Graphite the average discount ranged from 20% to 50%. Besides, with a rentable area of 8,370 m2 located on Zelena Street the company notes that achieved rental rates in Lviv are was also put in service. lower than the declared ones. Representatives of OPTIMA- Completion of some facilities has been rescheduled PLAZA confi rmed that they reduced the rent, however, for 2021. In particular, the completion of KIVSH, a mixed- on the condition of a gradual rise back to the base price. use creative space on Shevchenka Street. The opening Moreover, this business park even provided discounts of its fi rst phase with a total leasable area of 5,500 m2 is when concluding a long-term lease agreement. The retail scheduled for Q2 2021. KIVSH is a redevelopment project and offi ce center Intercity also reduced the rates, and of a former production area. this step, as well as a generally loyal approach, made it possible to keep a signifi cant pool of tenants. RENTAL RATES AND VACANCY In general, in the market, the average rental rate for New trends driven by the coronavirus pandemic have the offi ce spaces in 2020 varied between US$10-12/m2/ not amended the situation in the Lviv offi ce real estate month (VAT including, operating fees excluding), according market for landlords’ benefi t. Arman Sarkisian, Deputy to Cushman & Wakefi eld in Ukraine. Head of Offi ce Landlord Representation at Cushman & Wakefi eld in Ukraine, notes that last year this sector EXPECTED GROWTH was very unstable. The pandemic, lockdown, quarantine, “The offi ce real estate sector in Lviv is the second most and, as a result, the trend towards remote or variable work active after that of the capital and heads the list among of companies have produced a negative eff ect on business the regions in terms of activity,” the consulting company centers’ operation. For example, during the quarantine Colliers Ukraine describes the market. Its experts are period, the number of workers in the business park OPTIMA- convinced that this sector has potential and will be PLAZA decreased by approximately 60-70%. And according growing. Nataliia Kravets, Commercial Director for to estimates by Olena Khoverko, Commercial Real Estate Offi ce and Retail Real Estate at Dragon Capital Property Leasing Manager of the retail and offi ce center Intercity, Management, notes that there are almost no quality offi ce 19 premises off ered in Lviv. Therefore, Dragon Capital as an At the same time, the current crisis caused by the OFFICE REAL ESTATE investor sees potential in the development of this sector. coronavirus pandemic may force developers to reconsider Back in 2019, they built over 7,000 m2 of offi ce spaces in the their plans in terms of offi ce projects. shopping and entertainment center Victoria Gardens on Kulparkivska Street. Also, the portfolio of Dragon Capital CONTEMPLATION OF RECOVERY in Lviv includes the business center Viking with an area In Ukraine, the number of tenants that optimize the cost of 18,000 m2 on Zelena Street, which will be completed of renting offi ce space, who prefer hot-desking (a form in 2021. of work when an offi ce desk is shared by multiple In general, according to Cushman & Wakefi eld in employees) will grow in the near future. Olena Khoverko Ukraine, there are several offi ce projects in the city at also notes the changing demand for functionality and diff erent stages of development with a total leasable area organization of the workspace. According to her, it is of over 230,000 m2. Among them, there is the innovation focused on fl exible offi ces. As a result, an interest in park LvivTech.City on Stryiska Street which is developed coworking format is projected to grow. Although the by UDP. The fi rst of three business centers of this park of operators of such spaces are also going through diffi cult 18,800 m2 will be opened in 2021. At the same time, UDP times, several companies show strong interest in the does not change its strategic plans: the offi ce spaces of locations for opening fl exible projects. LvivTech.City with a total area of 60,000 m2 will be built by “The offi ce real estate market in Lviv showed a clear the end of 2023. growth trend in the dynamics of recent years. However, The future supply of the city, according to Cushman the lockdown switched most players to a ‘standby’ & Wakefi eld in Ukraine, consists of the following major mode or a state of risk-and-uncertainty balancing,” told projects (in addition to the ones mentioned above): Vitalii Melnyk, Vice President of UDP. According to • Innovation District IT Park on Stryiska Street; Lesia Tychynska, in 2021, the demand for offi ce space will • the business center PENTA on Khimichna Street; be restored, but given the very smooth return of employees • the business center Washington Tower on George to work and the trend to remote work, this will happen as Washington Street; early as at the end of Q1 2021. And the pre-quarantine • the business center Kristal Plaza on Panasa Myrnoho indicators of the offi ce real estate market will be reached Street, and others. again in a year or so. PHOTO PROVIDED BY DRAGON CAPITAL PHOTO In the photo: Victoria Gardens Offi ces, Lviv 20 YEAR OF RESTRICTIONS 2020 was a real challenge for shopping centers and the retail sector. Despite the unprecedented situation, both landlords and tenants have found compromises trying to minimize the negative eff ects of the pandemic and the crisis it has caused.

LOCKDOWNS TRAFFIC Since the pandemic in Ukraine and the introduction In 2020 after the spring lockdown immediately, there of quarantine, shopping malls and the retail sector was a decline in attendance rates, which in some survived three periods of nationwide severe projects could reach 40%. Gradually, consumers

RETAIL REAL ESTATE RETAIL restrictions: March-May 2020 – 2-2.5 months of returned to shopping and entertainment centers, lockdown, November 2020 – weekend lockdown, their traffi c increased, although not fully recovered. January 2021 – 3-week lockdown. It is worth With the start of the weekend lockdown, there was a noting that the local authorities could make their shift in consumer fl ows and an increase in attendance own decisions to strengthen or ease restrictions. in shopping centers on weekdays, which could reach Thus, for example, shopping and entertainment 20%. However, as of the 2020 year-end, the traffi c centers in Kyiv reopened later (at the end of May) did not recover. According to Watcom.Ukraine, the than in other cities in Ukraine. And in Lviv, malls average annual attendance rate of shopping centers were able to reopen on May 11, but clothing in 2020 decreased by 26.5% compared to 2019. and footwear retailers were an exception – they restarted operations on May 18, 2020. Besides, TURNOVER due to the adaptive quarantine model, diff erent After the spring lockdown, some consumers returned regions could set various restrictions depending to social life and to visiting shopping centers on the epidemic situation therein during other in particular. According to the market players – periods. Amid severe limitations, some retailers developers and managing companies – mall visits were allowed to operate. They were food retailers, became more targeted. As a result of the deferred drogerie stores, pharmacies, pet stores, etc. demand, there was an increase in conversion Considering this, shopping and entertainment and average check, a rise of turnover in certain centers were not completely closed during retail segments, including clothing and footwear, lockdowns, approximately from 10% to 40% of household goods, tech and electronics, sports goods, their tenants (% of the lease area) were open for etc. In some categories, the turnover exceeded the customers or worked like e-commerce stores or for results of 2019. At the same time, there was a decline delivery. in the turnover of some other operators, especially of food and entertainment spheres. In general, as RENTAL RATES of the 2020 year-end, despite all the unexpected Lockdown was kind of a ‘shock therapy’ for developments, the retail turnover in Ukraine was shopping centers and the retail sector. However, positive: it increased by 8.4% compared to 2019. despite the absence of conditions in the lease agreements that would provide for such a situation, VACANCY RATE landlords and tenants mainly reached a consensus. After the reopening after the fi rst severe lockdown, Shopping and entertainment centers canceled the the key shopping malls of Ukraine managed to keep rent payments for those retailers that didn’t have the pool of tenants; the vacancy increased in some an opportunity to work during the lockdown period, facilities insignifi cantly. Due to the coronavirus and after the reopening, they reduced rental rates, pandemic and the crisis caused by it, stores providing discounts that could be as much as 15%, were closed mainly by small and non-systematic and 50%, or more. Commercial conditions were companies that had no margin of safety. Some discussed with each tenant personally, paying operators optimized physical presence and closed attention to the operator’s sphere and the situation unprofi table locations. As a result of the crisis, some around, the relationship between the parties, the retailers paused the development plans and focused background and future of the partnership, the on maintaining the existing stores, while others dynamics of turnover, etc. Rental revenues of have exploited the situation for expansion following shopping centers from the entertainment sphere the increase in vacancy in high-quality shopping decreased the most: children centers and cinemas, and entertainment centers. Therefore, due to these as well as food services (food-courts), were the trends, the retail property market undergoes the segments that suff ered the most. gradual rotation of tenants. 21 RETAIL REAL ESTATE

In the photo: shopping and entertainment center Victoria Gardens, Lviv PROVIDED BY DRAGON CAPITAL PHOTO 22 KYIV RETAIL PROPERTY: TO WITHSTAND THE CRISIS

Shopping malls and retail sector are usually the fi rst to experience crisis trends but also the fi rst to show recovery. Of course, in the current realities and limitations, the market cannot return to the pre-quarantine indicators; but even the worst forecasts that were made during the fi rst lockdown in the spring of 2020 did not come true: there were no notorious store closures or signifi cant increase in shopping center vacancy in Kyiv. The exception is a decrease of rental rates. RETAIL REAL ESTATE RETAIL SHOPPING CENTERS OCCUPANCY brand InWear Matinique and the British Topshop left our After the spring lockdown of 2020, almost all tenants market last year. opened in Kyiv shopping and entertainment centers. The key retail projects retained their tenant pools, and the RENTAL RATES share of vacant spaces, although increased in some malls, According to the estimates of the Ukrainian Council of was insignifi cant. Interesting to admit that the average Shopping Centers, UAH2.5-3 billion of lease payments vacancy rate even decreased in 2020. Thus, according to were lost by the Kyiv shopping and entertainment centers the consulting company Colliers Ukraine, this indicator was during the spring lockdown period, which lasted from 11.9% at the beginning of the last year and fell to about mid-March till the end of May 2020. In such projects, the 10% as of the 2020 year-end. The reason for this was the retailers that were not allowed to work during the period of fact that the new projects that entered the market were severe restrictions were temporarily released from paying gradually leased by tenants. These are Blockbuster Mall, rent; later, after reopening of malls, landlords reduced which opened at the end of 2019, and the shopping rental rates providing discounts that could reach 15%, and and entertainment center RETROVILLE, which started 50%, and more, depending on the operator’s situation and operations in 2020. For example, when the quarantine was the relationship between the parties. implemented, Blockbuster Mall, the largest retail project in Therefore, the average rental price in the retail property Ukraine with 150,000 m2 GLA (1st and 2nd phases), had 10% market in Kyiv, which in 2020 survived one more lockdown of opened stores, and its occupancy rate increased to 36% in November, decreased. According to Colliers Ukraine, the in December 2020. prime rates in the best Kyiv malls for 100-200 m2 premises In general, based on trends, the retail property market stabilized at the level of US$60/m2/month, and on the in Kyiv follows the scenario of gradual rotation of tenants. main shopping streets – at the level of US$65/m2/month There were no mass closures of operators last year. (VAT and operating costs excluding). The percentage However, due to the coronavirus pandemic and the crisis reduction was 20-30% year-on-year at the end of 2020. caused by it, small and non-systemic companies that did For comparison: according to Colliers Ukraine, the prime not have a margin of safety closed their stores. Some retail rental rates in the best Kyiv malls for 100-200 m2 premises operators abandoned unprofi table locations, optimized reached US$80/m2/month, and on the main shopping offl ine presence, and revised expansion plans. streets – US$83/m2/month (VAT and operating costs At the same time, new stores were launched by stronger excluding) at the beginning of March 2020. players. For example, two retail projects of the group According to UTG, the fi xed rates for the fashion gallery Epicenter K entered the open market, i.e. the company premises with an area of 50-200 m2 in existing shopping began to locate its stores, which previously operated only and entertainment centers amounted to US$27.9/m2/ in the company’s own facilities, in other shopping centers. month as of 2020 year-end compared to US$33.8/m2/ This refers to the children’s stores E.PIC and decor galleries month (VAT, operating and utility costs, turnover % named Deko. At fi rst, they opened in Kyiv shopping centers excluding) at the beginning of the last year. in 2020. The group’s future plans are to expand these chains in shopping malls all over the country. TRAFFIC Also, as UTG informed, new brands entered our Just right after the spring lockdown of 2020, traffi c of market last year, among them were clothing brands shopping malls decreased, and in some projects the Miss Sixty (Italy), Karl Lagerfeld (Germany), Fransa and footfall was 35% lower compared to the pre-pandemic B.young (Denmark), as well as cosmetics retail chain period. Gradually, consumers returned to the malls, The Body Shop (UK), shoe retail chain FLO (Turkey), and traffi c grew up, although not fully recovered. During the some others. The fi rst IKEA store opened in February 2021 weekend lockdown, there was a redistribution of fl ows in Kyiv, before that the company operated in Ukraine in the and an increase in attendance on weekdays. In response, online format and had several pick-up points in the capital. some malls changed their schedules, extending opening However, it should be noted that the Danish clothing hours on weekdays. 23 RETAIL REAL ESTATE PHOTO: FACEBOOK.COM/BLOCKBUSTERMALL.UA PHOTO: In the photo: Blockbuster Mall, Kyiv

MAJOR SHOPPING MALLS SCHEDULED FOR OPENING IN KYIV IN 2021

Name Address GLA, m2

Respublika Park 1A, Ring Road 135,000

Ocean Mall 176, Antonovycha Str. 110,000

BalticSky 134/1, Peremohy Ave. 10,000

HIT Mall 23, Baltiiskyi Lane 13,500

Standard One 2, Akademika Hlushkova Ave. 2,500

Source: UTG

However, the pandemic has boosted the growth of welcomed visitors in May, and the second – in August. e-commerce and strengthened loyalty to online shopping; According to Colliers Ukraine, with the launch of the development of marketplaces and the expansion of RETROVILLE, the stock of the Kyiv retail property market demand for goods that were not previously popular online increased by 5.7% to 1,588,000 m2. were also observed. These trends as well as the desire Several retail projects are under construction in the city of consumers to reduce costs or to avoid public places/ now. And in general, as Colliers Ukraine informes, there transport has led them to visit retail projects less often. are currently 13 malls at diff erent stages of development, Therefore, according to UTG data, the traffi c in Kyiv malls scheduled for opening from 2021 to 2024. Their total area decreased signifi cantly as of the year-end. The average is about 770,000 m2; the launch of this supply is likely market rate dropped to 516 people/1,000 m2 as of January to last over a longer period of time. According to UTG, 2021, and that was about 40% less compared to 2019. in the nearest perspective, the following projects are expected to enter the market: Respublika Park on the Ring NEW AND FUTURE SUPPLY Road (its launch was planned in 2014, but the construction As it was mentioned, the shopping and entertainment was suspended in 2015), HIT Mall on Peremohy Avenue, center RETROVILLE opened in Kyiv in 2020 – it was the BalticSky on Baltiiskyi Lane, Standard One on Akademika only project that entered the capital retail property market Hlushkova Avenue. It was also announced that Ocean Mall last year. The mall’s GLA is approximately 86,300 m2. on Antonovycha Street, the launch of which was planned The opening of the project was phased: the fi rst phase for 2019, may be opened this year. 24 RETAIL REAL ESTATE OF KHARKIV: ON THE THRESHOLD OF CHANGE

The retail real estate market has found itself in a diffi cult position due to the pandemic and the introduction of signifi cant restrictions. Against the background of uncertainty and the suspension of the development of many retailers, the situation in Kharkiv looks quite optimistic – two iconic projects, that will bring a lot of expected brands with them, are about to open in the city. This will lead to a change of consumer habits and the balance of power in the market. RETAIL REAL ESTATE RETAIL MARKET SUPPLY and shopping and entertainment centers in 2020 to be As of 2020 year-end, the supply of the retail real estate no higher than 6% (for comparison: at the end of 2019, market in Kharkiv remained unchanged – during this this average market index was 3.77%). And according period, no malls were opened in the city. Therefore, to Proconsul, the vacancy rate in malls with a 'well- according to the consulting company UTG, 3 regional, thought-out' concept did not exceed 3-5%, in others it 5 community, 28 neighborhood, and 17 specialized could reach as high as 20% or even 40%. shopping centers worked in the city as of the end of the Interesting dynamics were demonstrated by Nikolsky last year. The total area of retail projects, including more shopping and entertainment center, which is scheduled to than 20 stand-alone supermarkets and hypermarkets, open in the spring of 2021. By the end of 2020, its retail surpassed 474,520 m2, which corresponds to a saturation area was 95% leased (the project also features offi ce and rate of 328.6 m2/1,000 citizens. At the same time, about warehouse premises). Also, during the quarantine period, 139,000 m2 accounts for professional retail projects namely from March to December 2020, about half of its of the traditional format, as the consulting company 53,000 m2 GLA was leased to tenants. However, according Colliers Ukraine informed. And taking into account the to Budhouse Group, the developer of the project, many stores up to 3,000 m2, street retail, and markets, according pre-lease agreements have been re-signed because they to the assessment of the investment and consulting expired. company Proconsul, the volume of retail area in Kharkiv reaches about 1.5 million m2. RENTAL RATES The unfavorable state of aff airs aff ected the rental rates in VACANCY RATES the Kharkiv market. Players of the retail real estate sector In the main existing malls of the city, the occupancy updated the terms with tenants, regulated the payments did not change during the quarantine period. At least with individual discounts for a certain period while taking that’s what was observed in the malls Dafi and Karavan. into account diff erent factors, including the type of a “We do not have empty lots, because we have pre-signed retailer’s activity, as quarantine restrictions had diff erent contracts,” said Ihor Skliarenko, CEO of the Dafi chain eff ects depending on the industry. In general, according of malls (Kharkiv, Dnipro). During the quarantine and to Proconsul, the average rental rates in shopping and lockdowns in particular, despite the diffi cult situation, shopping and entertainment centers decreased by 15% the shopping and entertainment center Dafi did not feel in 2020. the outfl ow of tenants: its tenant-mix did not undergo The rates diff er signifi cantly depending on the format signifi cant changes. In both stable and crisis periods, the of a mall. For example, last year, the base rent for Kharkiv’s annual rotation rates in this project are the same – 5-7%. neighborhood shopping centers averaged US$7-18/m2/ The vacancy rate of the Kharkiv shopping and month (VAT and operating fees excluding). According to entertainment center Karavan was less than 0.6% the Ukrainian Council of Shopping Centers, 100-150 m2 in 2020. According to Iryna Povarchuk, CEO of premises could be rented at US$20 to US$100/m2/month DCH Infrastructure & Real Estate (the managing (VAT including). But this is not the highest price. For company of the Karavan chain of malls in Kyiv, Kharkiv, example, as Budhouse Group informed, the rental rate of and Dnipro), the performance of the project was stable some premises on the 1st and −1st levels in the Nikolsky and fl uctuated insignifi cantly at the 'technical' level: if mall reached $130/m2/month (VAT including). 2020 started with a vacancy of 0.4%, then at the end of the last year, it increased by only 0.2%. LONG-AWAITED ADDITION In general, according to Colliers Ukraine, the In the retail real estate sector of Kharkiv, one should expect average vacancy rate in the shopping and shopping and high-quality market growth in the near future. The most entertainment centers in Kharkiv was about 1%. But this promising malls in the city are Nikolsky (106,000 m2 applies to professional projects of the traditional format. GBA, 53,000 m2 GLA) and Planeta Mall (110,000 m2 UTG estimates the average vacancy in Kharkiv shopping GBA, 70,000 m2 GLA). Nikolsky will open in the spring. 25

SHOPPING MALLS PLANNED FOR DELIVERY IN KHARKIV IN 2021 RETAIL REAL ESTATE

Name Address GBA/GLA, m2

Planeta Mall 4А, Ring Road 110,000/70,000 (phases 1 and 2)

Nikolsky 2, Pushkinska Str. 106,000/53,000

Elysium Plaza 24D, Haharina Ave. 18,000/4,500 (retail area)

Source: Proconsul

The launch of Planeta Mall is scheduled for this year as for 40-50 stores (approximately 5,000 m2) near the metro well (it should be noted that it is the former Magelan station Heroiv Pratsi. shopping and entertainment center, which is being Also, according to the data provided by Colliers Ukraine, reconcepted and expanded now). two more shopping malls with 162,000 m2 of a total area Another source of growth of the retail real estate market may be developed in the city. in the city is the construction of shopping and shopping and “With the opening of new conceptual projects of the offi ce facilities as part of residential complexes. For example, regional format, the retail real estate market in Kharkiv according to Proconsul, the Manhattan mixed-use complex will inevitably face new challenges and changes,” said provides a 3-storey shopping center; in the residential Kostiantyn Oliinyk, Head of Strategic Consulting at UTG. complex on 144, Poltavskyi Shliakh Street, there will be Maksym Havriushyn, Head of the Ukrainian Council of about 3,000 m2 of retail spaces; and a 3-storey shopping and Shopping Centers and COO at Budhouse Group, shares offi ce center with a total area of about 2,000 m2 has been the same opinion. He characterizes Kharkiv as still one of designed in the Continental residential complex. the most 'empty' cities in terms of saturation with modern An increase in retail premises is also observed in retail real estate. The opening of new large malls will not places of concentration of passenger fl ows, namely near only restore the balance but will also lead to increased metro stations. According to Proconsul, the construction competition as the requirements of consumers and their of a neighborhood shopping center with 30-40 stores near preferences for visiting shopping malls will change. As a the metro station Peremoha (approximately 2,000 m2) is result, the projects that have been operating in the market currently being completed. At the stage of realization, for over 10 years will be forced to carry out reconstruction – there is another neighborhood shopping center project a trend that should be expected in the coming years. DCH INFRASTRUCTURE & REAL ESTATE DCH INFRASTRUCTURE & REAL ESTATE

In the photo: shopping and entertainment center Karavan, Kharkiv PHOTO PROVIDED BY PHOTO 26 COVID FLUCTUATIONS: REVIEW OF THE DNIPRO SHOPPING MALLS MARKET IN 2020 After fi ve years of stagnation, the Dnipro retail property market has entered a stage of qualitative changes. Some malls in the city have been renovated or expanded, improving their concept and tenant mix. However, in 2020, the coronavirus pandemic did not allow developers to convert investments into higher returns.

FAR FROM SATURATION completed in 2020; and DCH Infrastructure & Real Estate,

RETAIL REAL ESTATE RETAIL According to the analysis provided by the consulting which manages the Karavan chain of malls in Ukraine, company UTG, 46 retail projects, including 2 regional, is evaluating the experience of reconstructing of its project 6 community, 12 neighborhood, 17 specialized shopping in Kyiv and is at least thinking about renovating its facility centers, and 9 separate hypermarket buildings worked in in Dnipro – adds Dmytro Topolskov. Dnipro as of the end of 2020. Karavan (77,870 m2 GLA) and UTG notes that the new supply in the retail property MOST-city (33,000 m2 GLA) are the largest shopping and market of Dnipro was even more limited in the crisis year entertainment centers in the city. of 2020 compared to 2019. Thus, no large projects were Pursuant to the ICSC classifi cation, excluding small opened in the city last year. A two-storey 4,000 m2 GLA stores, street retail premises, markets, and separate shopping center was built in the Station Square; the fi rst supermarkets and hypermarkets, the total area of retail phase of the retail and exhibition complex with about premises exceeds 406,000 m2, which corresponds 10,000 m2 GLA was completed at the intersection of to 405.1 m2/1,000 inhabitants. Lamana and Kotsiubynskoho Streets; a small shopping and Slightly diff erent data on the market saturation are offi ce center Uspensky was put into operation in Uspenska provided by the Ukrainian Council of Shopping Centers Square. Several retail projects were closed at the same (UCSC), which was established on the basis of ICSC. time. In particular, the shopping centers Grand Plaza According to the UCSC, currently, Dnipro ranks seventh (9,000 m2 GLA) and Kubometer (2,900 m2 GLA) were closed among the regions of Ukraine in terms of saturation of retail and completely built down. areas in shopping centers with a rate of 344.3 m2/1,000 The largest volumes of new retail property supply in the inhabitants. “The retail property market in Dnipro had Dnipro market were provided by the second phase of the developed in the pre-war period. No shopping centers shopping and entertainment center APPOLO in 2020. were opened in the city for fi ve years (from 2014 to 2019). According to RDA, the GBA of this project grew up by 50% The situation began to change from 2019 – there was an after the opening, and its GLA reached 30,000 m2; it allowed increase in such premises. At the same time, the processes APPOLO to enter the top 3 largest malls in the city. that take place in Dnipro can be called rather qualitative changes of the market. The main trend is the renovation of STABLE VACANCY shopping centers,” says Dmytro Topolskov, Head of the Shopping malls succeeded in retaining most of the tenants UCSC Research Group. last year. For example, there was no outfl ow of retailers from Taisiia Lytovchenko, Director of the consulting NEO PLAZA; moreover, the number of new leases exceeded company Retail & Development Advisor (RDA), shares the number of outlets that were forced to close. Thus, only his viewpoint. As she says, despite some intensifi cation of one store shut down during the severe spring restrictions in development activity in recent years, new large malls, which this mall, and seven outlets closed in total during the period could boost competition on the retail property market, are from March to December 2020. The managing company almost not being built in Dnipro. In 2019-2020, the new signed contracts with 16 new tenants during this time. supply was provided mainly by small projects, as well as the Therefore, the occupancy of this mall grew throughout the renovation or expansion of existing shopping centers. year, and it had only 8.2% vacant spaces in December. DCH Infrastructure & Real Estate notes that its LIMITED SUPPLY projects reacted diff erently to force majeure caused by In 2004-2013, the Dnipro market was characterized by the coronavirus pandemic. “Unlike other projects, in the a period of rapid growth; and there was a period of Karavan mall in Dnipro, the share of tenants representing stagnation in 2014-2018; the qualitative stage of its small businesses is relatively high – up to 50%, so the development began in 2019 – as Dmytro Topolskov tells. risks for all parties were great because this market For example, the shopping and entertainment center segment is the most vulnerable to quarantine,” explains NEO PLAZA, which is a reconstruction project of the former Iryna Povarchuk, CEO of DCH Infrastructure & Real Materyk mall, opened at the end of 2019. The renovation Estate. As she said, the tenant mix slightly changed during of the shopping and entertainment center Dafi was the spring lockdown: about 10% of 'retail islands' and 27 RETAIL REAL ESTATE VISUALISATION: ALEF ESTATE VISUALISATION: In the photo: shopping and business center Perekhrestia, Dnipro kiosks left the mall, giving chance to more viable small- indexes in general and sometimes even incorrect, as all format operators. Also, the developer conducted several social behavior patterns changed signifi cantly during the rotations in the shopping galleries during this period, quarantine period, and this applied to both peak periods but the vacancy rate was not signifi cantly aff ected: it of seasonal demand and customer preferences. fl uctuated at the ‘technical’ level of 1.8% at the beginning “The overall situation with the coronavirus pandemic of 2020, and it was 1.5% in December. in Ukraine aff ects directly the performance of retailers and shopping centers. Prolonged quarantine and the ILLUSIVE PERSPECTIVES economic downturn may not only worsen the situation The competition in the retail property sector has of the existing players but also delay the entry of new intensifi ed under the current conditions. Because of the projects into the market,” warns Taisiia Lytovchenko. She existing restrictions, the market players cannot hold the noted that it was already clear that the opening of large usual mass events, so they are looking for alternative ways retail projects in Dnipro should not be expected in 2021. to restore traffi c and stimulate sales, which, in particular, And the projects that were previously planned for 2022 has aff ected the marketing policy. For example, the Dafi are likely to be postponed. In particular, the company mall has focused on local coalition promotional actions, Alef Estate has already announced the postponement of and Karavan has strengthened marketing initiatives in the shopping and business center Perekhrestia (35,000 m2 collaboration with tenants. GBA) commissioning for 2023. This project will feature a The market players hoped that the traditionally shopping area, which will become the second phase of successful December season would improve the situation, MOST-city, and a business center. but awaited anxiously the beginning of 2021 with the UTG and DC Evolution announced earlier their intention January lockdown. “The situation was more favorable to build the shopping and entertainment center Alfa Mall in December and the fi rst days of January; we reached (105,000 m2 GBA, 52,000 m2 GLA) in Dnipro. However, better results than expected, which were almost similar the launch of construction has not yet been announced. to the indicators in 2019,” said Iryna Povarchuk; but she Therefore, its implementation in the previously announced noted that it was diffi cult to draw parallels with last year timeline is extremely unlikely. 28 SHOPPING MALLS IN ODESA: IS THE MARKET PUT ON HOLD? 2-3 years ago, the retail property market in Odesa was expected to signifi cantly grow and even reach the saturation point due to the opening of some large malls. However, this did not come true – the projects announced before are now put on hold.

2020, the year of crisis, brought no replenishment of forced them to partially correct the terms of work with the retail property market in Odesa. If in 2019 it showed tenants, which were generally similar in malls in diff erent

RETAIL REAL ESTATE RETAIL a certain growth, specifi cally due to the opening of the regions of Ukraine. For instance, the shopping and neighborhood shopping center Perlyna 40/41 (Perlynna entertainment center Riviera confi rmed that certain of its Street, 4,000 m2 GLA) and extension of the shopping and retail operators were granted short-term discounts on an leisure center Gagarin Plaza (Genuezska Street, 6,000 m2 individual basis depending on their commodity lines and GLA), then in the last year there were no new malls in the the rates of sales turnover. city, as the consulting company UTG informed. In general, according to UTG, the retail property rental For this reason, the list of the market leaders remained rates in Odesa vary greatly depending on the format and unchanged. The largest shopping and entertainment location of a mall. Last year, 50-200 m2 fashion gallery center is still Riviera with its total area of 82,000 m2. premises were leased at the price US$30-60/m2/month It should be noted that last year it was decided to improve (VAT and maintenance payments excluding) in the most the use of premises in this property so that 1,760 m2 was successful properties, US$15-25/m2/month – such prices added to its gross leasable area that as a result made were typical for the shopping centers that used to be up 66,760 m2. The shopping and entertainment center successful in the past but now are out-of-date, $5-15/m2/ City Center ranks second in size with its gross leasable month – in the remote city districts, in morally obsolete area of 55,000 m2. FONTAN SKY center rounds out the top projects that have major conceptual defi ciencies. three, its gross leasing area being 30,000 m2. However, most of the factors historically inherent to the Diff erent experts give diff erent estimations of the size Odesa market supported the landlords in the tough time. of the market supply, and hence of its saturation as well. This is the place where commercial activity is traditionally According to the Ukrainian Council of Shopping Centers developed, as Odesa is the main commercial seaport of the (UCSC), there are 17 malls in the city (according to the ICSC country; this is the city, where the population is well-off classifi cation) with their gross leasing area being 392,800 m2. enough, the tourism potential is high, and sales drastically Odesa with a population of more than one million ranks grow in the holiday period. For this reason, this market in the top fi ve of the leaders among the regional centers was one of the leaders by popularity among retailers of Ukraine in terms of saturation of areas in shopping of all pricing tiers. Besides, a small supply of new retail malls per 1,000 residents. In spite of that, according to real estate projects provided for practically zero vacancy Dmytro Topolskov, Head of the UCSC Research Group, in most of the quality shopping malls. At the same time, retail facilities face no diffi culties with occupancy, this Kostiantyn Oliinyk, Head of Strategic Consulting of refers in particular to quality projects. According to UTG, the UTG, emphasizes that in spite of the stable situation cumulative area of the retail facilities of the city is 453,135 m2, typical for the leaders of the Odesa market, there was while the saturation is 447.6 m2/1,000 residents. This rate a gradual growth of vacancy in small community and covers 2 regional shopping centers, 10 community ones, neighborhood shopping centers that had a weak anchor 13 neighborhood ones, 7 specialized shopping centers, and component, a limited assortment of commodity lines, and 11 stand-alone buildings of hypermarkets. At the same time, no venues for leisure and entertainment activities. according to the consulting company Colliers Ukraine, the For example, within the year 2020, the shopping and total supply of quality retail property in Odesa is 236,000 m2. entertainment center Riviera maintained the vacancy So, the level of saturation with quality retail premises makes at the level of 1.7% and ‘entered’ into January 2021 233 m2/1,000 residents of the city. “The rate is almost twice with this rate. “The previous year was pretty successful lower than in Kyiv. However, the saturation level in Odesa is for us; we worked hard on involving international and the highest among other million-plus cities of the country,” Ukrainian operators. Of course, in the quarantine period, Colliers Ukraine comments. such negotiations take more eff ort than usual,” indicated Andrii Brynzylo, CEO of the shopping and entertainment RATES ARE UNDER PRESSURE, VACANCY IS STEADY center Riviera. Thus, last year, the managing company The year 2020 characterized by intermittent tightening signed several leasehold contracts for a total area up and easing of quarantine restrictions made signifi cant of almost 7,200 m2, particularly with two international pressure on companies that manage retail properties. This brands for a total area of 5,600 m2. This mall attracted 29 RETAIL REAL ESTATE PHOTO PROVIDED BY RIVIERA PHOTO In the photo: shopping and entertainment center Riviera, Odesa brands new for the city, namely Gap and Decathlon. opened in 2021. One of the examples is the shopping Besides, it is expected that due to the planned mall Mercury (Paliia Street), which is reformatted into an opening of two anchors in two diff erent segments the outlet center. According to UCSC, due to the renovation, traffi c of the shopping and entertainment center Riviera the gross leasable area of the property will grow up will grow. According to the results of Q4 2020, its footfall to 40,000 m2. Besides, in the current year, the second was reduced by only 5% as compared to the similar phase of the shopping and entertainment center Ostriv period of 2019. “I would like to emphasize that in Q4 2020 (Novoshchipnyi riad Street) is expected to open, the Riviera passed the test of ‘the red zone’ that made the gross leasable area of which after the extension will be work of the mall impossible, except the supermarket and 37,800 m2 (currently it is 15,727 m2). While the total area tenants off ering products allowable to sell. Moreover, the of this property will increase up to 70,100 m2, according weekend lockdown fell within this period, when apart to Cushman & Wakefi eld in Ukraine data. Apart from from the shopping gallery, the leisure and entertainment that, the construction of the project Aquarel is going zone, restaurants, and the movie theatre, in particular, on in the city, which is positioned as both a shopping stood idle; the children’s entertainment park was closed and a business center. And the real estate development because of a change of the tenant. For this reason, company Budhouse Group is planning to unfreeze the we consider this 5% drop of the traffi c in this period construction of the shopping and entertainment center absolutely insignifi cant as compared to the previous Yessa (39,000 m2 GLA) by the end of the year. “Also, we year,” said Andrii Brynzylo. should not ignore the fact that the regional shopping and entertainment centers of Odesa (Riviera and City Center) MARKET PROSPECTS have an opportunity to put into operation new phases Odesa is not only a tourist resort area in Ukraine but ranks in prospect, increasing their competitive stability at the 3 in such an important rate for the commercial activity market,” added Dmytro Topolskov. as population. However, as noted by Colliers Ukraine, Works on new projects in the city are in progress as within the recent fi ve years, no professional shopping well. According to Colliers Ukraine, last year four malls projects with an area of more than 30,000 m2 have been with a total area of more than 180,000 m2 were under put into operation here. “That’s why the market supply is conceptual development. represented mostly by properties opened in 2004-2014, At the same time, implementation and opening dates of which have already become obsolete and worn-out,” some of the projects announced before are rescheduled for stated Kostiantyn Oliinyk. an indefi nite period. These, in particular, are Odessa Mall However, despite a rather complicated previous (39,200 m2 GLA) and Ipodrom (62,500 m2 GLA). Further year, not all the construction sites of the city stopped or plans for the shopping and entertainment center Auchan slowed down their work. Several projects in Odesa are Les Vignes (40,000 m2 GLA) remain unclear as well, already in the fi nal stage, and they are most likely to be according to UTG. 30 FIGHTING AND SURVIVING Perhaps, the hotel industry is the one to have suff ered the most as compared to other commercial real estate sectors. The market players have to grapple with the lack of tourists, who are the main consumers of their services. As a result, in 2020, such facilities’ key performance indicators dropped signifi cantly compared to the pre-pandemic period.

SURVIVAL STRATEGY OCCUPANCY 2020 is now mentioned as the most diffi cult Closed borders due to the quarantine

HOTEL REAL ESTATE year in the history of tourism. Last year, the restrictions have become a major challenge amount of proceeds from the tourism industry for the hospitality industry and hotel sectors decreased by 70-85% compared to 2019 in in particular. The business has lost its main Ukraine. According to the estimates of the consumer – international travelers. Along State Agency for Tourism Development, with the ban on public events, this has led the losses in this industry amount to about to a signifi cant reduction in the occupancy UAH60 billion or over US$2 billion, where the rate. The degree of occupancy of hotels lion’s share is that of the hotel business. In in 2020 fell by about half. 2020, this segment operated in the context of Last year, there were temporary surges declining tourist traffi c, periodic tightening and in demand, and the industry operated due easing of quarantine restrictions, and with no to domestic tourism. During particular signifi cant support from the government. Last months, recreation areas enjoyed a better year, a positive step was taken – a law was position, like Odesa, which was especially adopted to reduce VAT for hotels from 20% popular in summer, and Lviv, which attracted to 7%, however, the reduction in taxes has travelers for the New Year holidays. The more become eff ective from January 1, 2021. or less successful peak months smoothed over During the strict quarantine period, Ukrainian the situation of 2020. However, they were hotels decided on their own whether to continue unable to eliminate the negative factors, such or suspend operations. The absence of clients as the lack of foreign tourism, the absence prompted them to temporarily close. Needless of the event market, and the general reduction to say, even under such conditions, hoteliers in numbers of Ukrainian travelers due have certain liabilities and expenditures. to decreasing solvency, etc. To mitigate the negative eff ect, they were forced to resort to some remedies: cost reduction, staff GAMBLING optimization (changes to the employees’ work Adoption of the Law of Ukraine ‘On State schedules according to the workload, unpaid Regulation of Activities Related to the leave, personnel reductions), renegotiation of Organisation and Conduct of Gambling terms of cooperation with partners, deferment Games’ is considered to be one of the of payments – these were the steps taken by positive events of 2020. According to the the market players. At the same time, they were law, casinos are allowed in Kyiv 5-star hotels trying to keep the business running in every with at least 150 rooms, and bookmakers possible way and stimulated the receipt of funds. and slot machine halls may be located in 3-, According to an online survey conducted 4- or 5-star projects with at least 50 rooms. by Horwath HTL and the Ukrainian Association As to the regional hotels, the requirements of Hotels and Resorts (UHRA) to study the are slightly different: casinos may be run in sentiments of hoteliers in Ukraine, about 27% 5-star 100-room facilities, and bookmakers of operators introduced additional services in and slot machine halls are allowed in 3-, their properties, including the lease of coworking 4- or 5-star hotels with at least 25 rooms. and offi ce spaces, and another 7% repurposed Hotels are expected to attract a broader some areas for gambling halls. Some market range of clients and, as a result, improve players brought down the prices to encourage occupancy and profitability on account travelers to come to their hotels, developed of gambling facilities. As of March 2021, special futures packages and promo certifi cates several accommodation facilities in different for future trips, asked bloggers and infl uencers cities of Ukraine received permits to open for support, and more. gambling halls. 31 HOTEL REAL ESTATE

In the photo: travelers’ hub Globe Runner Hotel & Hostel, Kyiv PROVIDED BY DEOL PARTNERS PHOTO 32 KYIV HOTEL MARKET: SUPER COMPLICATED 2020

In 2020, the performance of the hotel market in Kyiv decreased. Occupancy, for example, almost halved. According to optimistic forecasts, at the end of 2021, this sector may approach the levels of 2019, and a full return of the market indicators is possible in 2022, provided that the business environment is gradually recovered and no hard lockdowns are introduced.

OCCUPANCY RESQUE DOMESTIC TOURISM

HOTEL REAL ESTATE 2020 started quite successfully. According to EY in Ukraine, In response to limited international travel, Ukrainian hotels the occupancy of Kyiv’s upper-priced hotels was about have changed their focus to domestic tourists. So, if earlier 38% in January-February 2020, which was 6 p.p. higher many of them targeted foreign guests, the industry worked compared to January-February 2019. thanks to local tourism in 2020. Subsequent quarantine restrictions imposed in mid- However, the situation in each project may be diff erent. March and onwards, their periodic easing or tightening For example, last year, the number of foreign clients in the led, among other things, to the forced temporary closure President Hotel decreased signifi cantly, now 80-90% of its of a large number of hotels, and occupancy in the Kyiv market guests are Ukrainians. Before 2020, the share of foreign halved in 2020. Note that in 2019, 5-star hotels were 45% residents reached 70% in some facilities in the chain occupied, and 4- and 3-star projects were 55-65% occupied. Premier; but last year, due to reduced international tourist According to the consulting company Colliers Ukraine, last fl ows, hotels lost up to 50% of income from this segment of year, the higher-priced hotels were fi lled by 22%, and the quests. Ramada Encore Kyiv attracted Ukrainian audiences medium-priced projects – by 23-25%. earlier, so despite the general decline in occupancy, the Over 2020, some months were more successful for ratio of Ukrainian to foreign tourists remained unchanged: hotels, and some were less productive. it was 77% in 2020, while it reached 78% in 2019. As Irantha Duwage, CEO of DBI Hotel Management, The chain of Senator Hotels and Apartments welcomed informed, in the hotel Ramada Encore Kyiv, which is managed more foreign guests (70%) than Ukrainian (30%) from June by the company, there were two best months during the to October of the last year. However, due to a series of pandemic period – August and November, when occupancy lockdowns, constant fl uctuations from the ‘yellow’ to the reached almost 35% and 23%, respectively. As for another ‘orange’ quarantine zone, cancellation of fl ights, etc., the Kyiv hotel of DBI Hotel Management – Number 21 by DBI, fl ow of foreign tourists decreased signifi cantly, and those the best months after the announcement of the pandemic residents who stayed in these apart-hotels canceled were October and December. In October, the occupancy rate their bookings and left Ukraine. Therefore, in November- reached almost 34%, and it exceeded 29% in December. In December 2020, the company-operator of the chain general, the occupancy of Ramada Encore Kyiv decreased to focused on domestic tourists. Another DEOL Partners’ 21% in 2020 compared to 52% in 2019, and the occupancy project – Globe Runner Hotel & Hostel, which was of Number 21 by DBI was 27% last year compared to 54% launched in early 2020, attracted a Ukrainian audience in 2019. mainly. For the hotel chain Premier, which operates 16 facilities The market players expect that in the short-term in Ukraine, including one 5-star and two 3-star hotels in period this situation will be the same: in 2021, even if the Kyiv, the best months during the quarantine period were international travel restrictions are weakened, domestic July and August. In general, the hotels of this chain tourism will still support the hotel sector of Ukraine. fi nished 2020 with occupancy rates that were 10-55% lower compared to 2019. Meanwhile, Kyiv was one of the ADR cities that showed the biggest decline. The quarantine, decline of foreign tourist fl ows, and the In Kyiv’s President Hotel, which is managed by Vertex inability to hold large-scale events led to a 50% drop in hotel Hotel Group, the autumn months were the most successful revenues in 2020. According to Colliers Ukraine, last year the due to the growth of business activity. average daily rate (ADR) in the Kyiv higher-priced segment And for DEOL Partners, the developer and operator of was €130 compared to €150 in 2019. And in the middle- the 11 Mirrors Design Hotel, the chain Senator Hotels and priced hotels, the ADR decreased to €40-55 compared to Apartments, and the travelers' hub Globe Runner Hotel €89 in 2019. Interesting that in the chain Premier, the 5-star & Hostel, the most eff ective months during the pandemic segment showed the smallest changes: as the company were August and October. The average occupancy rate informed, the ADR remained at the level of 2019, but this of the 11 Mirrors Design Hotel and Senator Hotels and indicator decreased by 10-30% in the operator’s 3-4-star Apartments was 50-70% last year. hotels. In the 4-star President Hotel, the fall of ADR did not 33 HOTEL REAL ESTATE VISUALIZATION: RADISSON HOTEL GROUP RADISSON HOTEL VISUALIZATION: In the photo: Radisson Hotel Pechersk Park Kiev, Ukraine exceed 15% last year. And the average daily rate decreased the brand Swissotel Living. However, the COVID-19 crisis by 15-20% in 11 Mirrors Design Hotel and in the chain will likely adjust the plans of developers, because the hotel Senator Hotels and Apartments. sector suff ered more than other segments of commercial real estate. However, Ruslan Oleksenko, Founder and MARKET SUPPLY Managing Partner at DEOL Partners, notes that this The hotel market of Kyiv was expected to grow in 2020. year one can still expect the opening of new hotels or the The prospective supply included the hotel ibis with reconstruction of old ones. He believes that this segment 150 rooms and apart-hotel Adagio with 100 rooms. remains attractive for investors. “The most important Sheraton Kyiv Olimpiyskiy with 208 rooms was also thing is to choose or create a fl exible real estate project expected to open. However, these projects were not (for example, apart-hotels with elements of a coworking launched last year. Instead, the market added another space), which can be easily adapted to the demands location: in February, before the quarantine, the hub of the present and trends of the future,” commented Globe Runner Hotel & Hostel, developed and operated by Ruslan Oleksenko. DEOL Partners, was launched in Kyiv. The project combines the features of a hostel and a hotel: it off ers 17 private FORECASTS rooms and family suites as well as 21 dormitories. Among The forecasts of most market players for the current year the results of 2020 in the Kyiv market, the completion of are quite restrained. Colliers Ukraine does not expect the reconstruction of the hotel Number 21 with 18 rooms, signifi cant growth in 2021, assuming that in autumn, managed by DBI, and Bratislava Hotel Kyiv with 335 rooms hoteliers will reach 70-80% of profi tability compared is worth noting. to 2019. A full return to the pre-quarantine level is Last year, a new project by the international chain possible in 2022, provided that the business environment Radisson Hotel Group was added to the list of the future is gradually recovered and no hard lockdowns are supply of the Kyiv market: it announced the construction introduced. of the 167-room Radisson Hotel Pechersk Park Kiev, But Irantha Duwage was quite optimistic about the Ukraine. Its launch is scheduled for 2022. Even before prospects of 2021. He forecasted that Q1 market indicators the quarantine, several hotels were announced to be would be close to the results of Q4 2020. Hotel market developed and opened in Kyiv in 2021-2022, among them measures are expected to grow in Q2 2021, but, for example, were the 300-room Slavutych and 146-room St. Petersburg the average occupancy will not exceed 50%. In Q3 and (both after reconstruction), and 58-room apart-hotel under Q4 2021, the indicators will be close to the level of 2019. 34 HOTEL MARKET IN ODESA: NEW REALITY IN TERMS OF FIGURES After the period of absolute lockdown in spring 2020, hoteliers of the Odesa region partially managed to make up for the lost time during summer vacations. Although having no tourists from abroad, they gained an advantage over hotel operators in the capital, which to a greater extent depend on business activity.

SUMMER MOOD summer month was rather wait-and-see both for hoteliers

HOTEL REAL ESTATE During the strict spring quarantine of 2020, in spite of and travelers who kept a low profi le as for planning their the fact that hotels were allowed to work in Odesa, most vacations, because they did not understand in which way operators closed their whole room stock or a part of it. For the situation would evolve with the quarantine restrictions example, Mozart Hotel Group (its portfolio includes such and transportation in particular. hotels as Mozart, OK Odessa, Arcadia, and Tsentralna) Contrasted with other regions of the country, Odesa was to temporarily suspended the work of three of the four and did have higher demand as an available seaside summer properties. The management company Ribas Hotels holiday destination in the season of 2020 for Ukrainians. At the Group (its portfolio includes eight sites in the Odesa same time, there was a range of factors, in view of which the region) decided to put on hold all the four hotels in Odesa, hotels found themselves far from their results of 2019. That was, while its seasonal locations in the Odesa region had namely, an absence of international tourism and a limited event not been opened yet before the quarantine began. The market. “We saw an increased demand for Odesa and even same happened to Premier Geneva Hotel of the Premier feverish booms in the periods of long-term holidays. But this did network, it closed its doors in March and was standing idle not turn out to be enough to compensate for the total lack of up to May 12, 2020. clients from abroad as well as earnings from mass-attendance Traditionally, the holiday season in Odesa opens in May; events. Consequently, the initial basic prerequisites made up however, in 2020, it started 1.5-2 months later because the a reduced pattern of demand,” the hotel operator Premier quarantine restrictions were extended from time to time. commented on the situation. After the restrictions were eased, starting from June 1, all accommodation facilities were gradually reopened. IN TERMS OF FIGURES It should be noted that according to Hotel Matrix, as of Last year, the average monthly occupancy rate of hotels 2020, there were 255 hotels with a total room stock of more in Odesa ranged from 20% to 68%. According to the than 6,570 rooms operating in Odesa. Early in the season, research data of Hotel Matrix that covered 3-, 4-, and their occupancy rate was not high: about 20-30%. The fi rst 5-star properties with the cumulative room stock of more PHOTO: HOTEL DE PARIS ODESSA MGALLERY DE PARIS HOTEL PHOTO: In the photo: Hotel De Paris Odessa MGallery, Odesa 35 HOTEL REAL ESTATE PHOTO PROVIDED BY MOZART HOTELS GROUP HOTELS PROVIDED BY MOZART PHOTO In the photo: hotel OK Odessa, Odesa

than 1,700 rooms or 26% of the total room stock of the city, down to 2 million people, of which 13% were foreigners, the highest rate – 68% – was recorded in August. At the while the rest were Ukrainian citizens from other regions. same time, the hotels in the downtown of Odesa reached These data were provided by the Department of Culture 70% occupancy, while those located in health-resort zones and Tourism of the Odesa City Council. To compare, were 65% occupied. According to Hotel Matrix, in this 3.3 million tourists visited the city in 2019. peak month of the previous year, the average daily rate Yet, in spite of the complicated year of 2020 and (ADR) was UAH2,300 (about €70). At the same time, the cautious forecasts, the hotel market in the Odesa region average daily rate (ADR) of the hotels located by the keeps developing and expanding. For example, last year, sea amounted to UAH2,919 (about €88), and that of the the company Premier, which manages Premier Geneva properties in the downtown area was UAH1,700 (about Hotel, opened the 5-star 200-room Premier Hotel Odesa €50). The revenue per available room (RevPAR) ranged after its reconstruction. Despite the tough conditions, from UAH1,068 to UAH1,478 (about €32-44) depending on in August of the last year, it managed to almost reach the location. the average market occupancy rates in the competitive It is worth mentioning that last year the occupancy rates environment of the property, while in the period of the of lower-priced resort hotels were better, since they are more Independence Day celebration it was 100% ‘sold out’. focused on domestic travelers than higher-priced locations. Besides, the 25-room hotel Brik became operational in For example, in peak months, some of the properties of Odesa last year. And the international managing company Ribas Hotels Group worked at the level of 2019 or even Radisson Hotel Group announced the plans to open its fi rst higher than it had been planned. However, this referred to property under the brand of Radisson in Odesa – Radisson seasonal properties. At the same time, the situation was Hotel City Centre Odessa. This is actually a project of worse in the city hotels of Ribas Hotels Group. For instance, rebranding and reconstruction of the 90-room Milano in summer they were 20-25% occupied. Hotel. In 2021, it is planned to complete this work and to commission the renewed property with its room stock REVIVAL AND GROWTH OF THE MARKET increased by 37 rooms. Operators expect that there will be a revival in 2021, while Last year, Ribas Hotels Group invested in the network of the rates of the hotels will have returned to the level of glamping sites – this is a type of camping sites combined 2019 by 2022 at the earliest. The way the situation will with comfortable accommodation similar to that in a hotel. evolve depends on a range of factors, namely on opening The fi rst property of the network named Mandra was the borders, recovery of international and event tourism, opened in the Odesa region. Also last year, the operator etc. It should be noted that in 2020 as compared to 2019, was engaged in a dialog about buying a franchise for the the tourist fl ow to Odesa was more than 30% reduced – construction of an apart-hotel for 400 rooms in Odesa. 36 HOTEL REAL ESTATE PHOTO PROVIDED BY !FEST HOLDING OF EMOTIONS PHOTO In the photo: !FEST Hotel, Lviv

HOTEL REAL ESTATE IN LVIV: RESULTS OF 2020

Lviv is a city that has always attracted travelers; and in recent years, it welcomed more foreigners than Ukrainians. In 2019, for example, the structure of the tourist fl ow consisted of 65% of foreign guests vs 35% of Ukrainians. In total, 2.5 million people visited the city in 2019. For that reason, the closure of borders as one of the restrictive quarantine measures has become a signifi cant challenge for the hospitality industry and the hotel sector in particular, as the business has lost its main consumer. In 2020, Lviv was visited by 70% fewer travelers than in 2019, which was 750,000 people; 66% of them were Ukrainians.

DRAMATIC DECLINE restrictions on the entry of foreign travelers, and a sharp During the period of severe spring quarantine in 2020, decline in tourist fl ows led to a signifi cant reduction in Lviv hotels independently decided whether to continue or hotel market occupancy. Last year, occupancy in Lviv suspend operations. A lack of guests, of course, resulted in hotels varied between 20-34% depending on the month. a temporary closure of such facilities. For example, during Considering the quarantine restrictions in Ukraine and the the lockdown period, it was decided to suspend ibis Styles world, operators did not expect to resume occupancy to Lviv Center’s operations, because, as its management the level of 2019, when it reached 65%. Falling occupancy, explained, it was more fi nancially feasible. Premier Hotel as well as discounts on the accommodation provided Dnister was closed during this period. But BANKHOTEL did by hotels to stimulate domestic tourism, reduced the not stop activities for a single day. profi tability of this business. In the peak month of the The deteriorating epidemiological situation in Ukraine, quarantine 2020, December, the ADR, according to 37

Hotel Matrix, was UAH1,978 (about €60), and RevPAR was rate will reach 60% in 2021. The hotel sector will be HOTEL REAL ESTATE UAH669 (about €20). positively aff ected by the main offl ine events in Lviv; for BANKHOTEL shared its results for 2020. So, last year, example, Leopolis Jazz Fest, IT Arena, and Lviv Mozart are its average annual occupancy rate was 31%, ADR was planned for the current year in the city. “The market will UAH2,241 (about €68), and RevPAR amounted to UAH703 rely mainly on domestic tourists. At the same time, we (about €21). Compared to 2019, the occupancy in 2020 hope to see some recovery in international tourism in the was twice lower, and the price policy was reduced summer and in H2 2020. Of course, everything will depend by 15%. “2020 was not the same as all previous years on the pandemic situation,” commented Daniel Mlcousek, and was diffi cult for the tourism industry. The situation General Manager of ibis Styles Lviv Center. was changing dynamically and required to adapt to new realities and develop a new strategy. The income rate of THE MARKET WILL GROW UP the hotel was directly proportional to the epidemiological The hotel market supply in Lviv remained almost unchanged situation and the quarantine restrictions adopted by the compared to 2019. Only one project opened last year – government. The percentage of profi ts began to grow in the 69-room !FEST Hotel, which was launched in January August. The removal of restrictions on diff erent events and 2020. The developer of the project is !FEST Holding of conferences had a positive eff ect, as a result, this indicator Emotions. In general, according to the data provided by increased signifi cantly in September compared to previous Hotel Matrix, last year, this market off ered 107 2-5-star months. It is clear that during the weekend quarantine hotels with almost 3,530 rooms in total. in November, the number of guests decreased, which Despite the fact that even before the quarantine, signifi cantly aff ected the situation in the city. Instead, according to some experts, the hotel property market in domestic tourism was actively developed in December, Lviv exceeded the level of saturation, the supply in the when a lot of tourists chose Lviv to celebrate instead of medium- and higher-priced sectors exceeded demand, and traveling abroad,” BANKHOTEL describes the situation. competition between the players sometimes escalated into Another market player, ibis Styles Lviv Center, reached price wars, it did not stop investors’ interest in this sector. In 30% of occupancy in 2020, while this rate was 80% in March 2021, the 56-room Reikartz Mural Lviv was opened. 2019. Last year, the hotel’s ADR fell by 18% and RevPAR In the current year, the launch of Best Western Plus Lviv by 65%. The best results for 2020 were in July when the Market Square is expected; and ibis Lviv, Novotel Lviv, hotel reached 40% of occupancy (this was due to the and some other projects are planned to open in the next completion of the lockdown) and in December when it two years. Besides, in 2019-2021, the Lviv City Council was 50% occupied (high domestic demand during the approved several decisions on the implementation of new Christmas and New Year holidays). hotel projects. For example, on December 27, 2019, the Council’s executive committee allowed the construction of EXPECTATION OF RECOVERY a 6-storey hotel on Heroiv UPA Street near the business The current situation remains unfavorable for the hotel center Business-City Technopark. Also in 2019, it was industry in Lviv. Further recovery in demand in this market announced about the intention to build a mixed-use will depend on external factors, including decisions to complex with event areas, offi ces, and a 200-300-room ease quarantine restrictions not only in Ukraine but also hotel near the Lviv airport. In 2020, the Lviv City Council in neighboring countries, as before the pandemic the provided city planning conditions and restrictions for the number of foreign tourists in the city exceeded the number construction of a conference hotel on Shevchenka Street. of domestic. Also last year, the winner of the architectural competition So, until the epidemiological situation stabilizes, for the development of a hotel and shopping complex on borders open, and regular international air travel resumes, Doroshenka Street was chosen. Besides, the City Council Lviv hoteliers will depend on domestic tourists. At the provided city planning conditions and restrictions for the same time, the hotel market players in the city expect reconstruction of a building on Zaliznychna Street near a gradual recovery in demand from H2 2021 onwards, the main railway station, which is to be redeveloped providing the absence of new shocks. into a hotel, as well as for the construction of a hotel on “We are optimistic. We hope that all the planned and Shchyretska Street. In 2021, the city planning conditions postponed events will be held this year, and we hope for and restrictions for designing a hotel with administrative improving the epidemiological situation in the city and the and retail premises in Mickiewicz Square and an offi ce country as a whole, which will have a positive impact on and hotel project on B. Khmelnytskoho Street were the occupancy of the hotel industry. But, being realistic, at approved. And these are not all the projects that have the same time, we are working on creating and generating been considered by the City Council over the last two new ideas to attract a new segment that we have not years. However, their implementation is not a matter of worked with before,” was remarked by BANKHOTEL. tomorrow; besides, market conditions, as always, adjust ibis Styles Lviv Center forecasts that the occupancy the plans of investors. 38 WITHOUT PANDEMIC FEVER The warehousing and logistics sector was found to be the most persistent to the challenges of 2020. However, it was not immune to the general negative trends caused by the coronavirus crisis.

STEADY POSITIONS 100,000 m2 in the Lviv region. The facilities In times of crisis, the warehouse and that were put into operation in 2020 − logistics sector reacts the slowest to beginning of 2021 were almost completely negative trends, but it also takes longer leased out. That is, even after their opening, than other segments of commercial the vacancy in the segment of warehouse real estate to recover. No downfall was and logistics real estate remained relatively observed in this market, which proved to low. Demand in the market is driven, be the most persistent to the challenges fi rst of all, by the development of trade, associated with the pandemic, fi rst of all, delivery services, and certain sectors of the due to slow growth (recent years were not economy, in particular pharmaceuticals. too abundant in terms of new openings The retail sector is one of the main tenants of warehouse and logistics complexes) of warehouse and logistics centers. Thus, and mainly stable demand. It is worth during the strict quarantine, the retailers mentioning that in general in Ukraine, the which could not operate in physical warehousing and logistics sector develops stores began to launch an online format.

WAREHOUSE AND LOGISTICS REAL ESTATE predominantly in the Kyiv region, which is Accordingly, they needed additional the largest in the volume of such supply, premises, since e-commerce, according and to a lesser extent in cities such as to some sources, requires three times as Dnipro, Odesa, and Lviv. The proportion many warehouses as offl ine business. At the of class A warehouses between Kyiv and same time, the operators which already had other cities is around 80% to 20%. The such a format of business could require high-quality facilities in the regions are in more space to serve the growing demand. short supply. However, amid the positive dynamics of take-up, there were other trends: SEARCH FOR COMPROMISE the rotation increased, some of tenants Last year, the main players in the planned to expand and rent additional warehouse and logistics sector managed to space but were not able to do this, some keep their tenants, of course, they had to postponed the conclusion of transactions; look for compromise commercial solutions. there was a decrease in leased space During the period of strict quarantine, or withdrawal from the lease relationship. many tenants initiated negotiations with landlords to reduce monthly payments. PROSPECTIVE FORMAT What is meant here is an appeal to reduce It is expected that the retail sector, the payment in part or in full, to defer particularly e-commerce, will support payments, or to provide other individual demand for warehouses, which were concessions for the period of restrictive the least aff ected during the pandemic. measures and the like. The landlords, even Besides, online retail will not only be a if they made concessions, it was on a case- catalyst for take-up but will also lead by-case basis, by analyzing, for example, to certain changes in this real estate how much the tenant’s business suff ered market. In particular, it is setting the during the strict quarantine period, what trend for the format of small logistics- share of the company’s expenses was warehouse facilities within the city limits, attributable to storage space, and so on. the so-called in-city warehouses or urban Arrangements during this period were warehouses. Growth of demand specifi cally regarded as temporary measures. for such premises is observed both in Kyiv and in regional cities. Over the medium OCCUPANCY term, given the rapid development of A total of about 200,000 m2 of warehouses e-commerce, one can expect growth of this were built in Ukraine last year, including real estate format. 39 WAREHOUSE AND LOGISTICS REAL ESTATE

In the photo: Fozzy Group’s distribution center (based at the logistics

center Protec Zymna Voda), Lviv region PROVIDED BY FOZZY GROUP’S PRESS SERVICE PHOTO 40 WAREHOUSE PROPERTY MARKET IN KYIV AND KYIV REGION: RESULTS OF 2020 The warehouse and logistics sector of Kyiv and Kyiv region was the least aff ected by the negative trends caused by the coronavirus pandemic compared to other segments of commercial real estate. It ‘entered’ the crisis with a shortage of available supply and low vacancy. The fact that the sector was not ‘overheated’ became a stabilizing factor for it.

NEW SUPPLY VACANCY AND RENTAL RATES DYNAMICS According to the consulting company CBRE Ukraine, The dynamics of demand on the warehouse and logistics the new supply of warehouse premises on the market real estate market of Kyiv and Kyiv region mainly of Kyiv and Kyiv region amounted to 78,000 m2 in 2020 remained high during 2020. According to CBRE Ukraine, and signifi cantly exceeded the volume in 2019 when positive leasing activity contributed to the conclusion only 22,000 m2 were launched. Last year, the main stock of 16 agreements last year, and the total volume of gross was provided by the 53,000 m2 (GBA) second phase take-up grew up by 20% y-o-y and amounted to about of the warehouse complex Amtel (Bilohorodka village, 166,000 m2. The stable demand was primarily driven by the Kyiv egion), developed by Amtel Properties. development of the e-commerce and grocery retail sectors. The warehouse and logistics property sector has also Particularly, wholesalers and retailers accounted for the grown due to the entry into the speculative market of the largest share in the take-up structure – 48%, and logistics Falbi complex with approximately 11,000 m2 of warehouse operators accounted for almost 29% of all new lease

WAREHOUSE AND LOGISTICS REAL ESTATE area after the change of ownership of this facility – agreements in 2020. it was bought by Dragon Capital, and it became a major The rental activity contributed to the fairly low investment deal of the last year. vacancy in the warehouses that entered the market last Furthermore, as CBRE Ukraine informed, there year. For example, the warehouse complex Amtel had was a change in the intended end-use of Epicenter K, 15% of vacant spaces at the moment of commissioning located on Viscozna Street in Kyiv, from retail to in October 2020. That is, 85% of its premises were leased logistics, that added about 20,000 m2 to the total market at the construction phase. The vacancy rate of its second supply. Therefore, the total stock of the warehouse phase decreased to 10% as of the beginning of 2021. and logistics premises in Kyiv and Kyiv region grew However, contrasted with the positive dynamics up to 1.52 million m2 last year. of take-up, there were other trends in the market: rotation

In the photo: warehouse complex MLP-Chaika, Kyiv region PHOTO PROVIDED BY MLP-CHAIKA PHOTO 41

MAJOR WAREHOUSE AND LOGISTICS PROJECTS PLANNED TO OPEN KYIV PROPERTY MARKET WAREHOUSE AND LOGISTICS REAL ESTATE IN KYIV AND KYIV REGION IN 2021

Name Location GLA, m2

Makarivskyi logistics complex (2nd phase) М-06, Е40 40,000

SAN Factory logistics complex (2nd phase) Kyiv 23,400

Mirage warehouse complex (3rd phase) Hostomel, Kyiv region 9,000

Source: CBRE Ukraine grew up, some of the tenants planned to expand and lease despite the expectations of experts and their hopes that additional areas and could not, some of the companies demand will create the conditions for a breakthrough. postponed the conclusion of new agreements, also, Therefore, in recent years, there has been no boom similar there was a reduction of leased areas or termination to 2008, when over 400,000 m2 entered the market. from a lease. This was especially observed in H1 2020. Moreover, the commissioning of part of the new supply As a result, as CBRE Ukraine informed, it led to a slight was periodically postponed. increase in the average vacancy rate on the warehouse Currently, several projects are planned to be opened in and logistics real estate market in Kyiv and Kyiv region 2021: according to CBRE Ukraine, the new supply should by 0.4 p.p. y-o-y to 2.9% as of the 2020 year-end. reach about 72,000 m2 this year. Also, as stated by the Also, with the beginning of quarantine, a lot of tenants company, several built-to-suit projects will be announced initiated negotiations with landlords, which aff ected this this year, too. business by way of postponement of payments, temporary Furthermore, as Nataliia Sokyrko, Head of Logistics reduction of payments, and other individual concessional and Warehouse Property Department at CBRE Ukraine, terms for the period of restrictive measures. However, it did notes, there is now a rapid growth in demand for inner-city not aff ect the nominal rental rates for warehouse premises logistics by online retailers. “As during the last ten years, in Kyiv and Kyiv region, which remained generally stable. e-commerce will once again become a catalyst for demand According to CBRE Ukraine, they were denominated and lead to shifts and changes in the warehouse property in UAH last year. Declared rental rates varied from UAH133 market in the next economic cycle, which will further help to UAH159/m2/month (VAT and operating costs excluding), attract investment in this segment,” she said. According which was equivalent to US$4.7-5.6/m2/month – that was to Vitalii Kashchenko, CEO of the warehouse complex the price for premises in A-class dry warehouses (in 2019: MLP-Chaika (Chaika village, Kyiv region), Kyiv needs at UAH125-150). The rent of the same premises, however, least 100,000 m2 of such warehouses, and the current stock in the B-class projects varied in the range of UAH95-100/ is about 25-30 thousand m2. “Another 100,000 m2 more – m2/month (VAT and operating costs excluding), which was and the market will take it up,” he says. However, it is not so equivalent to US$3.4-3.9/m2/month (in 2019: UAH75-110). easy to develop such projects within the city. “I was looking And the declared rental rates for cold storage facilities for a land plot for such a project. Frankly speaking, within were UAH300-360/m2/month (VAT and operating costs six months, I didn’t fi nd anything which would meet the excluding) or US$10.6-12.7/m2/month as of the 2020 year- necessary requirements,” said Vitalii Kashchenko. end (in 2019: UAH250-300). In the long-term perspective, the warehouse real estate As CBRE Ukraine forecasts, the gradual recovery of the market in Kyiv and Kyiv region may grow up, in particular economy and rise of consumer spending and e-commerce due to E40 Industrial Park, which is to be developed will contribute to further rental activity in the warehouse by Dragon Capital in Kolonshchyna village. The company and logistics real estate market. Therefore, the vacancy plans to start the construction of the fi rst phase of the rate is expected to decrease to 2.6% by the end of 2021. project in 2021. According to the concept, the total area of Concerning rental rates, a moderate increase and return the industrial park premises will be 200,000 m2, which will to indexation in the US$ are possible. include class A production and storage facilities, cross- docking terminals, offi ce, household, and infrastructure WAITING FOR GROWTH facilities. And Amtel Properties plans to explore the Possibilities for the warehouse and logistics real estate multi-temperature warehouse market and the availability segment in Ukraine, in particular in Kyiv and Kyiv region, of interesting land plots soon. The developer also informed are highly valued; fi rst of all, due to the quite active lease that it could begin designing the third phase of the of such premises. However, there are still more deterrents warehouse complex Amtel. 42 WAREHOUSES & LOGISTICS: LVIV REGION MARKET REVIEW

At the beginning of 2021, a 73,000 m2 logistics center was commissioned in the Lviv region. This facility increased the market supply by 34%, which amounted to 187,000 m2 before. It is expected that another 200,000 m2 of warehouse and logistics premises will be built in this region in 2021-2022.

MARKET SUPPLY The new supply was to exceed 100,000 m2 in 2020. According to the consulting company Cushman Thus, last year, the fi rst phase of the logistics center & Wakefi eld in Ukraine, as of 2020 year-end, the total Ecobusiness-Lviv (33,000 m2) was launched near Lviv, supply in the warehouse real estate market in Lviv and and the fi rst phase of Protec Zymna Voda, the largest Lviv region, which can be classifi ed as a relatively high- logistics center in Western Ukraine, was expected to be quality stock, amounted to approximately 187,000 m2. commissioned. According to the offi cial website of the For comparison, according to diff erent consulting project, its total area reaches 73,000 m2, 63,000 m2 is companies, the cumulative area of warehouses and allocated for warehouses, another 10,000 m2 is created logistics complexes in Kyiv and Kyiv region amounts for offi ces. This project will exceed 100,000 m2 after the to 1.5-2 million m2. That is, the total quality stock of the completion of all construction phases. As Cushman warehouse property market in Lviv and Lviv region was & Wakefi eld in Ukraine informed, the project was 8-10 times smaller than in the capital. commissioned in early 2021.

WAREHOUSE AND LOGISTICS REAL ESTATE In recent years, there were not many openings of new According to the development and managing company warehouses and logistics facilities in Lviv and Lviv region. Alterra Group, 200,000 m2 of new warehouse and logistics According to the consulting company CBRE Ukraine, premises are to be built in Lviv and Lviv region in 2021- two projects were launched in the city in 2019, and both 2022. Among the future projects in this region are the were developed for the customers’ needs. For example, extension of the logistics center Protec Zymna Voda (about the group of companies Nova Poshta built a 15,000 m2 40,000 m2 GBA), and the construction of the logistics innovative terminal named LEO, and the national complex Galileo Logistic (45,000 m2 GBA) and PORT Lviv distributor BERTA Group completed the fi rst phase of the Logistic Center (approximately 35,000 m2 of warehouse logistics center UB1 with an area of 43,000 m2. and production facilities), etc. 43

And according to Cushman & Wakefield in Ukraine, 120/m2/month. The company admits that the rental prices WAREHOUSE AND LOGISTICS REAL ESTATE new warehouses totaling approximately 300,000 m2 are are likely to increase by 10% in 2021. being developed or planned in Lviv and its outskirts. Additionally, at the end of 2020, Epicenter K announced TOO MANY CHALLENGES the plans to build a 230,000 m2 shopping and logistics The warehouse and logistics property market is poorly center. “The new supply, which is being developed in developed in the regions of Ukraine, in particular in Lviv and its outskirts, may partly meet the growing Lviv, where there is a shortage, often acute, of quality demand for quality premises and increase competition facilities. This segment has potential for development in the segment,” said Dmytro Pasenkov, Head in the Western region, but there are a lot of risks for of Warehouse and Industrial Property Department developers and investors. These are primarily the at Cushman & Wakefield in Ukraine. However, he factors such as economic instability, uncertain and pays attention to the fact that the development activity insuffi cient demand, lack of project fi nancing, and low in some cases consists only in the acquisition of land and volatile rental rates. Thus, experts do not observe plots and creation of project concepts, but investors signifi cant demand in the warehouse segment in Lviv are ready to start construction only at the request region, compared to Kyiv, even though it is located of tenants. near the European border. Nataliia Sokyrko, Head of the Warehouse and Logistics Property Department RENTAL PRICE at CBRE Ukraine, considers that the market was even As of the end of 2020 – beginning of 2021, the asking a little ‘overheated’ by high expectations due to the rental rates for premises in high-quality dry warehouses proximity to the border and potential activity of both in Lviv and its outskirts were in the range of UAH140- Ukrainian and foreign companies. 200/m2/month (equivalent to US$4.9-7.1/m2/month at On the other hand, the fact that Dragon Capital bought the exchange rate UAH28.3/US$1) including VAT and the project of the industrial park Riasne-2 in Lviv from operating costs – as Cushman & Wakefi eld in Ukraine the company CTP, one of the largest industrial developers informed. in Europe, shows the potential of the warehouse and According to the group of logistics companies logistics property segment of this region. According to ZAMMLER, the rental rates for A-class warehouses in the the current concept, the development of six warehouses region reached UAH145-165/m2/month, including VAT and production facilities totaling 140,000 m2 is planned (in Lviv due to a smaller supply – UAH190-200/m2/month), on the territory of the industrial park. “We believe in the for B-class – UAH145-120/m2/month, for C-class – UAH80- viability of the industrial and logistics real estate sector, and this acquisition is in line with our strategic vision,” commented Tomas Fiala, CEO of Dragon Capital. It should be noted that over the past four years, the company has acquired 11 logistics complexes totaling 330,000 m2 and is ready to start construction of new class A facilities in its industrial parks. Some other factors testify to the good prospects of the warehouse and logistics property in Lviv and Lviv region. In particular, according to Cushman & Wakefi eld in Ukraine, further changes in logistics fl ows and the creation of new distribution chains with an emphasis on the Western region may have a positive impact on the development of this real estate sector. Besides, Lviv, like Kyiv, has a high potential for the warehouse facilities of the urban logistics format, focused on meeting the growing needs of e-commerce and other categories of tenants who need quality, compact, and effi cient warehouses within the city with good access to residential complexes and key transport arteries. Among the projects of the urban logistics format in Lviv Cushman & Wakefi eld highlights the following complexes: logistics-trade-offi ce complex on Luhanska Street, its fi rst phase is approximately 15,000 m2; logistics and offi ce complex Lemberg Logistic (26,000 m2) on B. Khmelnytskoho Street; warehouse complex near In the photo: logistics complex Galileo Logistic, Lviv Horodotska Street (approximately 18,000 m2). VISUALIZATION: CUSHMAN & WAKEFIELD, VR GROUP CUSHMAN & WAKEFIELD, VISUALIZATION: 44 INVESTMENTS is stilloneofthemainareas for investment. New York (USA)andLondon(UK). Commercial real estate sector attractive inthemajorcommercial hubssuchas early asthefi rst quarter of2021. of thoseintheU.S.are planningtheirnextinvestment as 67% ofsurvey respondents intheEMEAregion and88% 60% lookingtoexpandby more than10%.Furthermore, regions aimtoexpand theirportfolios, withapproximately Markets 2021Investor Outlook,98%ofinvestors across all gradual recovery. According tothe Colliers GlobalCapital Managing Director ofColliers Ukraine Alexander Nosachenko, decreased inthesecondhalfof2020to2.40pointsout5possible. of theCOVID-19 crisis.Ingeneral,theInvestment Attractiveness Index ofourcountry noted thatallrealestatesegmentsinUkrainehave moreorlessfelt thenegative impacts Commercial realestateisstilloneofthemainareasfor investment. H OF CORONAVIRUS REAL ESTATE INVESTMENTINTHETIME and market players may notbeabletoimmediatelyand impacts oftheCOVID-19 crisis.Even thoughmostinvestors segments inUkraine have more orlessfelt thenegative which saw adrop of43%. decreased by 53%(year-on-year), inparticularEurope, investment inreal estateinthefirst three quarters of2020 and forced investors toreconsider theirstrategies. Global accelerated afurtherdeclineintheindicators in2020 recession aff States andChina,expectationsofaglobaleconomic Brexit uncertainty, thetrade war between theUnited estate market begantoslow down. Backin2019,the After several years ofgrowth, theglobalcommercial real However, Investors with internationalcapitalstillfi nd theoffi However, ected theinvestment climate.The pandemic 2021 isgenerallyexpectedtobeayearof it shouldbenotedthatallreal estate

PHOTO: COLLIERS UKRAINE ce for 2020–about230,000m commissioning ofasignifi cant amountofnew supply fl ippedtothetenant's side. demand, itputpressure onrental rates, andthemarket spread andquarantine measures triggered adeclinein relatively stablepositions.H limited new supply. The market entered the crisiswith rates, increased demandfor high-qualityproperty, and market has gradually recovered, given thelow vacancy relatively stablefor investment. of commercial real estatebutinthelongtermremains The offi OFFICE SEGMENT exceed thesellingpriceofDnipro hotel. from thesaleofany oneofthose assetscouldsignificantly Kyiv machine-buildingplant).Ifdone President Hotel,andtheBilshovyk plantinKyiv (JSCFirst real estateobjects.Amongthemare theUkraine Hotel,the State Property Fundispreparing tosellseveral otherlarge of 2020theDnipro hotelinKyiv for UAH1.1 billion,the assets. Afterthesuccessfulauctionsaleinsummer boosted by theprivatization of theStateProperty Fund e-services. land market liberalization, and theintroduction ofstate the simplifi cation offoreign exchange operations, the a lowering ofinterest rates, astableexchangerate, the lockdown-induced recession, controlled infl ation, acknowledged arelatively rapid economicrecovery after this regime isunlikely tocontinueinthelongterm, asit signifiimp cant sentiment, comparable to2013estimates. These results show anunprecedented declineinCEO in thecountrydecreased to2.40pointsoutof5possible. second halfof2020,theInvestment Attractiveness Index Association survey ofinvestor sentimentinUkraine, inthe of thecrisis.Besides,according totheEuropean Business objectively evaluate thefullextentofconsequences supply in2020was justslightly over 150,000m postponed to2021-2022.Infact, theactuallevel ofnew some oftheprojects were notcommissioned,withmany At theendof2019,developers hadannouncedthe Over thelastfew years, theKyiv offi Investment activityinUkraine, inparticular, was In 2020,remotework becamethe Although businessleaders have notnoticed ce market isthemostcapital-intensive segment rovements owever, it owever, it in thelastsixmonths, 2 . But,asinprevious years, owever, should be new normal.H properly, as thepandemic e el estate real ce the rev 2 . they have owever, enue 45 INVESTMENTS VISUALIZATION: KOVALSKA ICG KOVALSKA VISUALIZATION: In the photo: NUVO Business Park, Kyiv

makes many business processes signifi cantly less effi cient. Presumably, the new supply will be commissioned in The offi ce remains the primary place for collaboration, relatively small ‘portions’, which will be taken up gradually whilst business success continues to depend greatly on by the market throughout the economic recovery. And personal interaction, collaboration, and the exchange of predictably, systematic clients will prioritize high-quality ideas. Nevertheless, there is a noticeable shift towards premises, thereby contributing towards an outfl ow of greater adoption of the hot desk system, which will lead companies to new and high-quality projects with attractive to a reduction in the number of workstations in offi ces in concepts. general and, therefore, a decrease in staff seating density, Incidentally, new players entered the offi ce real tending towards respecting broad social distancing estate market in 2020. Mixed-use properties and guidelines. As a result, the focus when creating new offi ce business parks were the most attractive for investment. spaces will shift towards increasing public zones, meeting Kovalska Group, for example, has started the construction areas, and conference facilities. The offi ce segment will of fi ve business campuses in UNIT.City with a total continue to develop, and offi ce space is highly unlikely to area of 70,000 m2. The investment into these projects shrink, but rather to transform itself, and there will still be exceeds US$70 million. Kovalska, with the development a signifi cant demand for it. company KDD Engineering, also started working on the The vacancy rate and rental rates will directly depend fi rst business park in Kyiv’s central business district. on the pace of the economic recovery. The health of this NUVO Business Park is a complex of seven properties, segment will be greatly aff ected by the results of the fi ght which will include Grade A offi ce buildings and several against the pandemic and the speed of decision-making infrastructure buildings, notably residential. The by global corporations about investing in offi ce space. total commercial area of this business park exceeds The market is expected to level out, but in the 88,000 m2, and the expected project cost stands at more near future it will continue to favour the tenants’ side. than US$90 million. 46

RETAIL SEGMENT of their investments is to complete the construction and According to Colliers ExCEEding Borders research, launch the facility. when comparing the COVID-19 crisis to the recession Most likely, there will be no large purchase transactions following the global fi nancial crisis of 2007-2008, retail of functioning shopping malls at this stage. Potential sales in Central and Eastern Europe have seen a robust buyers, considering all the risks, will expect a sizeable V-shaped recovery in a lot of cases. Labour markets in the discount. Whilst potential sellers, estimating that this CEE region as well as purchasing power seem to be in crisis is short-term, that the situation will soon stabilize,

INVESTMENTS much better shape this time around than a decade ago. and that the object will rebound to its pre quarantine The overwhelming shift towards e-commerce has led to a indicators, are not ready to reduce the price and sell below transformation in the retail segment. the construction cost. Building on the experience of previous crises, landlords in Ukraine have outdone themselves to keep tenants. WAREHOUSE SEGMENT Both sides have learned to fi nd compromises, realizing Warehouses have become the most stable segment in the that open communication is crucial to a market rebound, current crisis. Even before the quarantine, e-commerce provided the purchasing power recovers. was a driver of demand for such premises, but the However, at the end of 2020, the enduring pandemic lockdown signifi cantly amplifi ed this trend. The vacancy still led to store closures and tenant rotation, causing a rate remains at the level of 1-3%. The growth in demand moderate fl uctuation in the vacancy rate in key shopping and rental rates is raising interest in this segment among malls. Retail operators are reviewing plans to open developers and investors alike. new locations and are more conservative about their The most active player on the market is development prospects. The exception is the supermarket Dragon Capital, which during 2020 acquired the logistics segment, which continues to actively develop and complex Falbi (13,800 m2), announced the construction of implement new formats. In recent months, there has been the E40 Industrial Park (200,000 m2) and the sale of the a noticeable growth in this sector. logistics complex Omega-2 (both in the Kyiv region), and Among the major events in the retail segment was also purchased the project of the industrial park Riasne-2 the acquisition of Billa supermarkets by the grocery (in Lviv). retailer NOVUS at the end of 2020 and the beginning of the consolidation of these two chains. HOTEL SEGMENT As for the Kyiv retail segment, it grew in 2020 The hotel segment suff ered the most due to the pandemic. by only one object – RETROVILLE, with a GLA In the new environment, this sector has become the of approximately 86,300 m2. Its first phase was most diffi cult to manage and generate any profi ts. When commissioned in May, and the second in August. calculating net operating profi t and capitalization rates, it With the launch of RETROVILLE, the total stock of becomes clear that the real value of such objects on the the Kyiv retail real estate market increased by 5.7% market has dropped. Owners are not ready to sell such to almost 1.6 million m2. The project, which previously real estate at a price signifi cantly lower than the cost of attracted a loan of €41.1 million from the Polish State construction. Bank Gospodarstwa Krajowego, became the only Hoteliers have learned to respond faster to crisis shopping center in Kyiv that opened its doors during situations, mainly by optimizing operating costs, but hotel the quarantine period in 2020. Colliers Ukraine was profi tability has plummeted nevertheless. The legalization responsible for its tenant-mix. At the beginning of of casinos in Ukraine may become the much-anticipated 2021, RETROVILLE’s occupancy rate was about 80% lifeline for the hotel segment. when just counting opened stores, but a higher 91.6% when considering signed lease agreements. FORECASTS The construction of large shopping and entertainment Unsurprisingly, the market will be quite complex in centers in Kyiv and in Ukraine in general has not halted the near future. But when making strategic decisions completely, particularly for projects which were at an about entering a particular project, investors do not take advanced stage of construction. Almost all of those a short-term one-year outlook but rather focus on long- objects are fi nanced by Ukrainian companies whose term developments with an outlook of at least the next revenue streams come from other sectors. Provided that 5-10 years. the overall structure of profi ts in their other businesses Market players expect the beginning of a gradual does not deteriorate, companies are inclined to fi nish recovery of the market, which should accelerate after the the construction of the shopping malls already under start of mass vaccinations, and provided that no further construction in order to avoid seeing their capital strict lockdowns are introduced and that businesses return investments freeze up. The only way towards a return to their usual mode of operation.

48 QUARANTINE YEAR OF URBAN PLANNING REFORM Summing up the results of 2020, we assumed that the past year may surpass the previous LEGAL one in terms of the activity of the legislator in the industry. The quarantine imposed in Ukraine in connection with the spread of COVID-19 has had an unpredictable and long-lasting economic eff ect on construction market participants. But did the pandemic quell the state’s intentions to correct the infamous state of aff airs in the fi eld of urban planning? PHOTO: ANTIKA LAW FIRM ANTIKA LAW PHOTO: FIRM ANTIKA LAW PHOTO: Alexander Burtovoy, Vasyl Sheretko, Partner of Antika Law Firm Senior Associate of Antika Law Firm

To answer the question of whether the pandemic quelled also the implementation of licensing in construction. the country’s intentions to correct the state of aff airs in This approach to governance has created opportunities the fi eld of urban planning, it is enough to turn to the for large-scale abuses and widespread use of corruption chronology of legal novelties of 2020, which eloquently schemes. The Government abolished the DABI and testifi es not only to the attempt to destroy the former created instead of the latter three bodies, among which it regime of management of the industry but also causes distributed the broad functionality of the DABI: persistent feelings of incompleteness and surprise. • State Service for Urban Development of Ukraine Note that this review is limited to organizational, (hereinafter – DSSM), which is designed to perform managerial, and procedural innovations that relate permitting and registration functions within the state exclusively to the construction of facilities. We did not architectural and construction control and supervision, touch on changes in legislation that also indirectly aff ect in particular, to issue permits for construction works as the urban planning industry (land, tax, environmental, well as to commission completed facilities. etc.). • The State Inspectorate for Urban Development of Ukraine (hereinafter – DIM) as the main body of state NEW MANAGEMENT SYSTEM IN THE FIELD architectural and construction control and supervision, OF URBAN PLANNING which will conduct inspections and issue mandatory On March 13, 2020, the Government adopted the instructions. Resolution “On Liquidation of the State Architectural • State Agency for Technical Regulation in Urban and Construction Inspectorate and Amendments Development of Ukraine (hereinafter – DATR), which to Certain Resolutions of the Cabinet of Ministers will implement the state policy on technical regulation of Ukraine” #218 (hereinafter – Resolution #218) and in the fi eld of urban planning. the Resolution “On Optimization of State Architectural How was the new construction management and Construction Control and Supervision Bodies” #219 organization implemented during 2020? Initially, the (hereinafter – Resolution #219), which entered into force steps of the legislator were quite consistent. It should be on March 18, 2020. recalled that Resolution #218 provided for the continuation These decisions terminated the ‘sole management’ of the DABI’s performance of its powers and functions of the industry by the State Architectural and Construction until the completion of the establishment of the DSSM. Inspectorate (hereinafter – DABI), which meant the On May 27, 2020, the Cabinet of Ministers adopted the implementation by a single body not only control, Resolution “Some Issues of Functioning of Architectural supervision, permitting, and registration functions and and Construction Control and Supervision Bodies” #422, 49 which liquidated the territorial bodies of the DABI and approved the Procedure for state architectural and LEGAL provided for the establishment of 8 interregional territorial construction control (hereinafter – the Procedure #553)*. bodies of the DIM. The regulations on the relevant bodies of the DIM were approved by the order of the CHANGES IN THE PERMITTING PROCEDURE Ministry for Communities and Territories Development of Resolution #218 signifi cantly changed the “Procedure for Ukraine (hereinafter – Minregion) #147 dated 25.06.2020. the Performance of Pre-construction and Construction Subsequently, on September 9, 2020, the Government Works”, which was approved by the Resolution of the adopted the Resolution “Some Issues of Functioning Cabinet of Ministers #466 dated 13.04.2011 (hereinafter – of Central Executive Bodies in the Field of Urban the Procedure #466). Planning” #806, which provided for the establishment of Among the key novelties should be noted: 24 territorial bodies of the DSSM. • updating the list of documents attached to the However, at the end of the year, there was a ‘surprise’. application for a permit; In the light of the Government Resolution of 23.12.2020 • introduction of checklists for acceptance of documents “Some Issues of Functioning of Architectural and in the center of administrative services for obtaining a Construction Control and Supervision Bodies” #1340, permit to start construction works for new construction, which entered into force on December 30, 2020 reconstruction, and overhaul of the construction object (hereinafter – Resolution #1340), most of the novelties as well as a permit to start construction works for on the new management system suddenly lost their restoration objects; relevance. Pursuant to Resolution #1340, the Government • introduction of checklists for inspection by a DSSM liquidated the DIM and DSSM and established a new offi cer of documents for obtaining a permit to body, the State Inspectorate for Architecture and Urban start construction works for new construction, Planning of Ukraine (DIAM), to which it regained the reconstruction, and overhaul of a construction object broad competence that previously belonged to the DABI. as well as a permit to start construction works for At the same time, the provision of Resolution #219, which restoration objects; provided for the establishment of DATR, was also excluded. • reduction of the term for the decision of the state An important feature of the transition period of the architectural and construction control body on granting governance reform is the abolition of bylaws governing a permit or refusal to issue it (5 working days instead licensing in the fi eld of architecture and construction. of 10 working days); At the same time, DABI was excluded from the list of • reduction of the list of grounds for a refusal to issue licensing bodies, which was approved by the Cabinet of a permit; Ministers Resolution #609 dated 05.08.2015. As a result, • the possibility for Minregion to consider the decision from March 18, 2020, new licenses cannot be issued, and to issue or revoke a construction permit in an Minregion is responsible for making decisions to suspend administrative manner. licenses. The proposed changes should also be refl ected in the It should be remembered that in accordance with sub- Law #3038-VI, but this did not happen. As a result, at the clause 3 of clause 2 of the Final Provisions of the Law of moment there is a discrepancy between the current version Ukraine #530-IX “On Amendments to Certain Legislative of Art. 37 of the Law #3038-VI as a norm of supreme legal Acts of Ukraine Aimed at Preventing the Occurrence and force, which regulates various procedural issues regarding Spread of Coronavirus (COVID-19)” dated 17.03.2020, the issuance of a construction permit, and a new version the period for application for administrative and other of the Procedure #466. It is hoped that this discrepancy services and the terms of these services specifi ed by law between the bylaw and the law will be resolved soon. are suspended for the period of quarantine or restrictive measures related to the spread of coronavirus disease ELECTRONIC SYSTEM IN THE FIELD (COVID-19) starting from the date of quarantine. Taking OF CONSTRUCTION into account this provision of the Law #530-IX as well as It should be recalled that the introduction of a unifi ed state the ten-day period for issuing a permit for construction electronic system (USES) is provided by the Law of Ukraine works, which is established by the Law of Ukraine “On “On Amendments to Certain Legislative Acts of Ukraine Regulation of Urban Development” #3038-VI dated on Improving the Procedure for Providing Administrative 17.02.2011 (hereinafter – the Law #3038-VI), DABI could legally issue building permits only until 30.03.2020. An important innovation of Resolution #219 was also *One more ‘surprise’ was the renewal by the the introduction of a moratorium on inspections of the Government the Procedure #553 according to DABI before the start of the functions and powers of the the Resolution #1339, which was adopted by the DIM. This governmental act suspended the resolution of Government on December 16 and came into force the Cabinet of Ministers #553 dated 23.05.2011, which on December 30, 2020. 50

Services in Construction and Creating a Unifi ed State • From July 1, 2020, during the provision of Electronic System in Construction” #199-I dated urban-planning conditions and restrictions, and 17.10.2019, which entered into force on December 1, 2019 construction passport of the land plot, the authorized

LEGAL (hereinafter – Law #199-IX). In 2020, several important body of urban-planning and architecture shall upload steps were taken towards the establishment of the to the Register of construction activities graphic USES. Thus, Resolution #219 amended the Regulation materials in the form of an extract from urban- on the Minregion, approved by the Resolution of the planning documentation (main drawing) and copying Cabinet of Ministers #197 dated 30.04.2014 in terms of with a map key. This procedure of upload confi rms determining the competence of the Minregion to ensure the compliance of construction intentions with the the functioning of USES. Minregion is authorized to carry functional purpose of the territories in accordance out all organizational measures to ensure the functioning with the urban-planning documentation and the of the USES, including the control over its functioning. copying from the topographic and geodetic plan On May 20, 2020, the Cabinet of Ministers approved 1:2000, provided by the customer. At the same time, the “Plan of Measures for the Establishment and the specifi ed graphic materials are not a component Implementation of the USES” by Order #565-р, and on of urban-planning conditions and restrictions or the July 1, 2020, in pursuance of this Plan of Measures, construction passport of the land plot. adopted the Resolution “On the Implementation of a Pilot Resolution #559 also amended the Procedure #466 Project for the Introduction of the First Stage of the Unifi ed related to the implementation of the USES. In particular, State Electronic System in the Field of Construction” the implementation of the functions of the electronic #559 (hereinafter – Resolution #559), which approved cabinet provided for in Procedure #466 is entrusted to the Procedure for conducting a pilot project for the the electronic cabinet of the user of the Unifi ed State implementation of the fi rst stage of USES (hereinafter – Web Portal of Electronic Services ‘Portal Diia’, which is the Procedure for conducting a pilot project) and the integrated with the fi rst stage of USES. On July 17, 2020, Procedure for conducting the fi rst stage of USES during the Ministry of Finance announced the launch of the the implementation of the pilot project (hereinafter – the Register of Construction Activities and the Public Portal of Procedure for conducting the fi rst stage). the USES, and on December 2, the Minregion published a The Procedure for conducting the fi rst stage defi nes notice on the expansion of the functionality of the USES. the mechanisms of operation of the fi rst stage of USES in It is expected that the work of specialists and experts in order to ensure the creation, review, sending, receiving, geodesy and energy effi ciency, addressing bodies, and collecting, depositing, accumulating, processing, bodies on technical inspection of buildings and structures using, reviewing, storing, protecting, accounting, and will also take place in electronic format. providing information in construction as well as electronic interaction mechanism between individuals and legal OTHER LEGISLATIVE NOVELTIES entities, state bodies, and local governments in order to Summing up the review of legislative changes in 2020, obtain the construction services specifi ed in the Procedure we can name a few more interesting innovations for conducting the fi rst stage during the period of that will have an impact on urban planning. First of implementation of the pilot project for the introduction of all, it is appropriate to pay attention to the renewal the fi rst stage of USES. The fi rst stage procedure applies of a significant number of DBNs**, in particular, the to the activities of economic entities in the event that they entry into force of the new DBN "High-rise buildings" have notifi ed the Minregion of the voluntary use of USES. (DBN B.2.2-41:2019) from 01.01.2020 as well as Change An important and long-awaited appendix to the Procedure #1 to DBN B.2.5-20:2018 "Gas supply" from 01.06.2020, of the fi rst stage is the “Table of the ratio of classifi ers of which allows the installation of gas-using equipment special purpose, lists of functional zoning of territories, for apartment heating and hot water supply as well as and the classifi er of buildings and structures.” household stoves in apartment buildings above 3 floors. The Procedure for conducting the pilot project The novelties introduced by the Law #199-IX should establishes the following important requirements to also be borne in mind. Thus, to obtain urban-planning ensure the start of work of the USES: conditions and restrictions from March 1, 2020, it is • Creation and introduction of information on documents not necessary to submit an extract from the State entitling to the performance of preparatory and construction Land Cadastre as well as copies of title documents to works, documents certifying the commissioning of land and real estate located on the land, if they are completed facilities, on the change, refusal to issue, registered in the State Register of Property Rights to suspension, cancellation, and annulment of such Immovable Property. documents are carried out exclusively using the Register of construction activities of the fi rst stage of the USES and are mandatory from July 6, 2020 to March 31, 2021. **State building standards.

52 ARCHITECTURE & DESIGN Slava Balbek Interviewer: LuciaBondar industry iscurrentlyintransition,andtheinertiaofpandemicwillfullyaff whose projects ofoffi and transformations, suchasduringthepandemic.Slava Balbek,theFounderofbalbekbureau, in particularthecommercialone.Together withit,thisareagoesthrough diffi The sphereofarchitecturalanddesignservicesdevelops togetherwiththerealestatemarket, MUST BELOGICAL” BUT EACHARCHITECTURALSOLUTION SLAVA BALBEK: “ARCHITECTUREISMUSIC, result stepby step. the staff stagnation, nohorizon. We grew upconstantly, increased moment we are now hasbeenquiteorganic. We hadno way offormation from the momentwe started tothe any bonusesoradditionalinvestments. Ithinkthatour Nobody taughtusrestructuring. We didnotreceive it asa separate episode,becausewe went ourown way. were added,andlateroffi doing earlier. For example,apartments. Then restaurants for allspheres. There isjustsomethingthatwe started the typology. We have always beenuniversal, designed not aff turn intobalbekbureau andbogdanova bureau. This did by thestagewhen we decidedtowork separately and Olha Bohdanova andcreated 2b.group. This was followed stages. There was astagewhenwe startedworking with to design.Naturally, ourhistoryisdivided intosome company’s history, for example,itsstructure orapproach have any key episodesthatwould radically changethe The development ofourbureau isorganic. We didnot the development ofyour bureau? company couldyou mention?How didthey aff What main episodesinthehistoryof the of architectural anddesignservicesfor13 years. Your bureau hasbeenworking inthemarket ect thedevelopment, thecases,order method, , changedthetypeof team,andcametothis ces, hotels,restaurants,etc.areknown notonlyinUkraine,believes thatthe ces. Iwould notlike todetach

PHOTO: YEVHENII AVRAMENKO ect the middle a completely diff entered the market, and,like us inourtime,they have The purpose ofthebusiness hasalsochanged. that spacewhere they live, work, andspendtime. become atoppriority. People begantotake more seriously The personal health and thehealthofteamhave company inparticular, how diffi in general? Andhow hasthepandemicaff of architectural anddesignservicesitsplayers How hasthepandemicaff have ‘taken players onthemarket, there are onlyafew ofthemor they players worked inthisindustry. Now, there are noprevious changed becausewe startedwhencompletelydiff architectural anddesignservicesinUkraine has of is bolder, withaslightromanticism. everything isclearandobvious. Conceptual design approach meansthateverything isinplace, a functional ideas,and means thedevelopment ofdesign basedon are basedonaconceptualapproach todesign.Conceptual satisfying purely functionalneedstoaestheticones,which changed completely. The client’srequest hasgonefrom architectural solutions. development ofmodernstyle indesignandbolder own. This, ofcourse, hadapositive infl uence onthe access toinvestments, they managefi their nances on Our clienthasbecomeyounger. People aged23-35have his requests andpreferences changed? of Ukraine changedduringthisperiod?How has aclient, How hasthemarket ofarchitectural anddesignservices of our bureau isbasedonthemethodoftrialanderror. is thegreatest responsibility and challenge.The structure balbek bureau hasthemostvalue, anditsdevelopment specialists we needandatwhatbenchmark.The teamat the The mostdiffi diffi During these13years, whatwas themost cult and why? It isdiffi Over thelast10years, themoderndesignmarket has wave now, a backseat’.We werea cult tocommentonhow themarket cult thingfor uswas tounderstand what erent approach. because newprof cult times ect itduringtheyear. ected themarket cult theyear 2020 was? new wave.We are ected your essionals h erent ave 53 ARCHITECTURE & DESIGN PHOTOS: ANDRII BEZUHLOV, YEVHENII AVRAMENKO ANDRII BEZUHLOV, PHOTOS: Grammarly’s offi ce, Kyiv 54 ARCHITECTURE & DESIGN Bar-bistro Zweig, Kyiv prefer nottowork athome. at home,love athome,raise children athome, butyou for a secluded, free placesomewhere outside.You canlive more comfortable working outofthehome.They willlook to make aworkroom betterthanitwas. People are still segment. Within that5%,there was norequest like chosen aglobalvector ofdevelopment inthecommercial of orders for apartments(about5%)becausewe have housing projects. We have agreatly reduced category years, andgive atechnicaltaskgiven thepandemic. that thinkaboutthecurrent situation,make plansfor three of boththeclientandarchitect. There are companies rules diff in diff during theyear. Itisonlyatransitional periodnow when fully aff per person –this isanew reality. the air, work tablesandroom planning withatleast1.5m quality ventilation systemswiththeabilitytofi lter and purify than tactility. Contactlessdooropening,investment inhigh- places andoffi New planningsolutionsare being implementedin public In my opinion,the pandemichadtheleastimpacton In general, Ithinkthattheinertiaofpandemicwill erent countrieseveryone isobligedtousethese ect themarket ofarchitectural anddesignservices erently dependingonthesocialunderstanding ces. Distancehasbecomemore important opportunities. on theother– diversifi cation ofstrategy andspace about focusing onthedirect functionofthebusiness, and business modelsandwork formats. Ontheonehand,itis possibletobemore fl it exible by combiningseveral modules. and alsothe street, indoor, small, andlarge individual work rooms for diff pandemic includeseparate videorooms, separate meeting Trends thatare becomingmore popularduringthe the pandemic? have emergedinarchitecture anddesignduring What trends have intensified andwhatnew trends we managedto expandthenumberofregional requests. and prompt interaction withaclient.Ontheotherhand, of Ukraine. On the onehand,itgives usmore fl exibility to tryattract specialiststotheteamindiff geography oftheteam.We work remotely, sowe decided States. Ourworkshop hasexpandedthestaff China, startedwork ontwo hotel projects intheUnited We have completedcorporate projectsbalbek bureau. in The trend hasspread tohybrid spaces.They make It was aninteresting andproductive year for the erent numbers ofpeopleatasafe distance, erent cities erent and

PHOTO: YEVHENII AVRAMENKO 55

How would you describe the competition more for the services of a local architectural studio. Here, ARCHITECTURE & DESIGN in the Ukrainian market? How to become a relevant perhaps, we are talking about some cultural features. and in-demand designer? Even more, it is a matter of legality, barriers, formality. The demand for design services is so high that we don’t One needs to have a bank account, own offi ce, and a feel competition. The requests do not meet with the license. That is, at this stage of development we are talking requests of our competitors-friends. Restaurants, new about requirements that not everyone can meet, given the offi ces, and companies will always open and grow. organization, budget, etc. Still, the architectural business And someone, on the contrary, closes. I would call it is very shaky in terms of profi tability. Not many studios an architectural community, not a competition. Any reach economic heights. To have the ability and capacity experienced, expensive, or budget architect will fi nd his to enter the international market, a good commercial stock client. You just need to fi nd your niche and work in it. is needed. Someone is more famous, someone is less. Someone creates fast and budget but not thought-out projects. Tell us about the projects you have recently completed. The wider scope of a studio – the more requests it How many projects are currently in progress? has. The more precisely the company presents itself We have recently fi nished working on such projects in Kyiv on the Ukrainian market, the more focused it pearls as bar-restaurant Brik in Odesa, bar-bistro Zweig which off these issues. If the studio shows that it only makes is close to Kyiv Food Market, cafe Dyletant, the new offi ce black apartments, it will not get orders to create white for IT company Grammarly on the 12th fl oor of the business restaurants. But if it can make a project in any style center Gulliver, the Korean restaurant Kim Kimchi, as well and of any size, then it will have a steady demand as on the architectural and interior design of a private for its services. And the studio will have the ability house in Kozyn (construction lasted during three years), to choose which projects it wants to work with. There cafe Hooks in Kharkiv, and several other projects of offi ces, is competition here, but it is healthy. I don’t feel that which are still under NDA. it aff ects the relationship in the architectural community. We currently have about 35 projects in progress, two To be relevant, you need to stay tuned and be able to use of them, in particular, in the United States. The total design information. For me, in general, the word ‘relevant’ is close area of all the facilities is about 20,000 m2. to the word ‘trend’. I don’t like the last word, because it is short-term and limiting. For example, the trend of the year, In one of your interviews, you said that even small the trend of the season, the trend of triennial. What is projects need to be approached to create a work of art. relevant now will be irrelevant in a year. If we want to leave What do you insert in this concept? How to make behind an architectural physical trace, we must strive not a project so that it becomes an artwork? for relevance but for things beyond time. When we learn to There are no specifi c instructions on how to make the do useful, reliable things that are not subject to trends, they interior a work of art. Rather, it is the communication will be as interesting in 10 years too. between a client and an architect, their views on a project, Being a sought-after specialist is a request for service on its requests. It’s about details and approach. If each and personal features of an architect. It doesn’t always decision has its philosophy, logic, and arguments for its depend on style and budget. If your personality features defense, it is much easier to present a project, to build a are of a high level, then you will always be in demand. You so-called legend. Here, we have not to forget that every will have a fl ow of clients who will continue to trust you architectural solution must be logical. Architecture, though and return to you. not mathematics, is music but has to explain everything.

How popular are Ukrainian architects and designers What inspires you to work, where do you get your abroad, for example, in Europe and the United States? ideas from? What exactly is their advantage compared to foreign I am inspired by the success of my colleagues. When I see specialists? my architect friends or my team come up with a good The Ukrainian architects and designers occupy high idea, fi nish the project, it inspires me. This is about the positions at the world level, but the services of our domestic market, not the global. I am not so interested specialists cost much less compared to American or in the success of architects abroad. However, I am always European ones. Ukrainian design has an objectively high interested in rejoicing and being inspired by the success level, as it wins international competitions along with of the Ukrainian architectural and design community. other world studios. However, there are some barriers to development Apart from the architectural and design bureau, abroad. If you are from Ukraine and want to compete on you have some other businesses: a furniture brand, equal terms, then you need to have your representative. educational direction, and a restaurant. When Americans, for example, sometimes fi nd it safer to pay and why did you decide to expand your activity? 56 ARCHITECTURE & DESIGN and technology parkDarron, Qingdao,China Marketing exhibitioncenter ofthescience expand intheUnitedStatesandChina.Inbothof have abigdevelopment mapinallsectors ofouractivity. We setgoalsfor amaximumoffour weeks. Andwe don’t changes thathappenevery second, every week, every month. no matterwhatstrategy you build, you mustbeready for are allquiteunstable.Besides,thesituationhasshown that strategy for otherbusinesses.Because they a development Apart from thearchitectural workshop, we donothave Tell usaboutyour plansfor2021. And Idomy At least,thesebusinessdirections are interesting for me. schedule. Somethingisabusinessandsomethingnot. to simplifysomeprocesses. Itjusthappensonaclear attitude totheteambasedonhumanqualities–ithelps of management, coordination oftasks,andIhave aformed everything littleby little.Iusethesameprinciple It isimportanttofi nd abalanceandspare timefor directions? How doyou managetocombinethesefourbusiness a mountain river andspread indiff want tobelike adead-water,I don’t Iwant tomove like always dothesame,you canturnintoonebiglake. constantly moving forward. Itseemstomethatifyou It’s aboutcuriosity, testingyourself for strength, and gain new experience,grow steady, expandmy worldview. specialist inonefield. Ilike tochangedirections ofactivity, I want todevelop comprehensively, nottobeanarrow As for thearchitectural business,we have aplanto fav orite thing. erent directions. and consulting. in product design,architecture, restaurant business, independent. be supportedandcared for. Itdidn’tmake memore to theMaldives, andjustreceive dividends.Itshould constantly. This isnotabusinessonecouldlaunch,move to dealwithitevery day andmonitoritsdynamics isnotabusiness,it’sdailyrisk.One needs a restaurant products willbemanufactured. Kyiv. Now, we have acomprehensive placewhere allour that, we were housedinvarious locationsthroughout assembly facility for ourfurniture brand propro. Before we don’t.This year, we are launchingourproduction and When we can’tdomore soasnottocompromise quality, We understand thatwe have cut-off steps. We trytostrive for qualityrather thanquantity. just like that. diff Do somethingfor free, notfor profi t.This has a completely everything. You can’tjusttake, you have togive something. methods ofreturning tothedirection from whichwe draw methodsofexternalcommunicationandoneof the of the team tosocialprojects (SIDAA). For us,itisalsoone contribution. We distributesomeoftheworkload ofour social Also, there isanideatopay more attentionto in takingthegeography ofourfi eld ofactivityabroad. countries, we have ourcurrent projects. We are interested erent attitudeandphilosophy. something Iwant to do In thefi eld ofeducation,we plantolaunchacourse As for Dyletant(Slava Balbek’sown cafe – In allothersectors, we are expanding,moving insmall s andlimitsofquantity. ed. ):

PHOTOS: JIN ZHANG, MARIAN BERESH

COMPANIES

“A. Pashenko” Architecture Workshop ...... 60 Advansys Group ...... 61 Alef Estate ...... 62 Antika Law Firm ...... 63 APLEONA HSG ...... 64 Colliers International ...... 65 Denza Construction ...... 66 Design Hub International ...... 67 Design Prof ...... 68 Expomedia ...... 69 IQ SERVICE ...... 70 MANEZH ...... 71 MCL ...... 72 MDT Group ...... 73 MG Management ...... 74 Moss Decor ...... 75 Pro-Consulting ...... 76 Schüco ...... 77 UBI Conference Hall ...... 78 Vertex Hotel Group ...... 79 60 COMPANIES Innovation DistrictITPark, Lviv IQBusinessCenter, Toronto Business • Offi OceanPlaza,Magelan,HARTZ (allin Shoppingmallsandentertainment • The mainprojects ofthecompany are: of Ukraine. masterplans, etc.inKyiv andothercities commercial, residential, civicbuildings, large numberofalready builthigh-profi le a widerange ofprograms includinga developments; theirportfolio covers in large-scale private andpublic Today, “A.Pashenko” teamspecializes Offi and requires acreative individualstrategy. workshop designapproach. The architectsbelieve thateachschemeisunique of the city, sustainabilityandrationalityaretheessentialcomponentsof“A. Pashenko” Innovative integrateddesignsolutions,sensitivitytoculturalandphysical context “A. PASHENKO” ARCHITECTURALWORKSHOP ce Center, Kyiv Kyiv), Nikolsky (Kharkiv),etc. centers: ces andbusinesscenters: Novopecherski Lypky, CrystalPark, • Residential developments: Holiday InnKyiv, Leipzig,Radisson • Hotels: Street, Kyiv Mixed-Use Complexon1,Ivana Mazepy MG, etc. Varshavskyi, Montreal, Kvartal-Aley, Hoff Riviera Riverside, Tetris Hall,Zarichnyi, Blu HotelKyiv (Kyiv), Campanile,etc. etc. (Kyiv), Innovation DistrictIT Park (Lviv), Hill, Inkom offi Center, Innovation technoparkBIONIC mann Haus,Frantsuzkyi kvartal 2, ce andretail center Tetris HallResidential Complex,Kyiv Hoff mann HausResidential Complex,Kyiv www.pashenko.com.ua offi +380 (44)2336098 +380 (44)2497115 +380 (44)2497121 Kyiv 01135,Ukraine offi 34, Zlatoustivska Str. [email protected] ce 276 61 COMPANIES ce centers Astarta, 1, Starosilska Str. 1, Starosilska 02125, Ukraine Kyiv +380 (44) 540 03 34 [email protected] advansys.ua advisorscada.com Ocean Plaza; offi networks Breeze; Silver Senator, Parus, Planet McDonald’s, Kino, Sport Life, BMW, Bentley, auto centers Group; Fozzy plant Huhtamaki, Land Rover; Jaguar, complexes Procter warehouse ZAP, SPP, Mondelez, Glencore, & Gamble; LG, GlobalLogic, BIC, Colgate, Adidas, and others. many ective ective ectively ectively ectively ectively controlling modeling of future real estate objects estate objects real modeling of future in the early stages of design. estate objects in themodeling of real documentation. of project development management of construction projects management of construction projects using the modern methodology for management. high-quality project estate automation and dispatching to eff you systems. Allows estate objects. real operate be desirable it would Separately of the company’s professionalism The • Building Information Modeling –• Building Information Management – eff • Project • Management System – real Building of unique development to note new service – Advisor SCADA Group Advansys estate management of real remote for an opportunity to heads of objects. It gives costs operating estate to reduce the real 10%, eff at least by of energy and indicators parameters key consumption. Management happens panel of the user web via the control and the system of analytics interface service has the set of the of data. The equipment and a possibility of wireless connection of the equipment of third- of automation systems. party producers industrial, centers, applied in business It is buildings. and residential commercial, of and the reliability services, the quality, by highly appreciated were partnerships industrial and major developers, investors, Among the clients of the sectors. retail Mall, Retroville, SEC River are company industrial real estate. cient commercial and cient real estate for estate for cient real of expert engineers of expert engineers cient operation of real estate of real cient operation Advansys Group has over 10 years 10 years has over Group Advansys services in provides Group Advansys engineering solutions. dispatching systems. effi objects. the business. Lighting TM for plants TM Greenlogic. power as a leader in the Group, Advansys cient buildings, Advansys Group Group buildings, Advansys cient ADVANSYS GROUP ADVANSYS Advansys Group is an innovative engineering and construction group of companies of companies group and construction engineering is an innovative Group Advansys of the effi for the construction business in Ukraine, is constantly actively is constantly actively business in Ukraine, the and has introduced innovating innovations: following Modeling – energy • Building Energy The range of services provided by by of services provided range The support for includes the company at all stages of the construction projects an optimal cycle, creating life project from facility: engineering concept of the the investor’s the implementation of commissioning initial idea to the the property. and maintenance of By introducing to create expert solutions effi expenses the client’s capital reduces on construction and the client’s expenses management. on property of of experience in the implementation estate, more real engineering systems for than 100 successfully completed projects, as staff as well for managers and experienced project managing complex construction projects. technological cycle used in the The complies with the international company rm the quality system ISO 9001, numerous confi cates of conformity certifi cations of the organization’s qualifi specialists. areas: the following • Consulting & Modeling. Energy • Implementation of complex Design of engineering solutions. • • support. Construction projects • Implementation of automation and • the for of services Development • service. Service and warranty • YASA of lighting products Production • solar Construction of commercial construction of effi 62 COMPANIES modernity. That is why the ideaofacombination ofhistoryand At theheartofarchitect’s concept lies example ofaheritageassetreconstruction. Troitskyi ResidentialComplexisasuccessful • Complex. of MOST-city ShoppingandEntertainment signifi cantly expandthetarget audience fashion zone. The 19-storey offi MOST-city willgettheadditional3-storey the heartofcity. The secondpartofthe recreate thegenuineshoppingquarterin as well astheskyway inbetween, willhelp density development ofbothcomplexes, shopping complex,MOST-city. The high- part willextendthecity’smostknown and thebusinessone.The shopping theshoppingone will consistof2 parts: Perekhrestia, was started.The complex shopping andbusinesscenter, In 2020,theconstructionofanew and Business Center • Perekhrestia Shopping their work andleisure atoneplace. business people,enablingthemtocombine modern premium complexisintendedfor Dnipro multistorey automatedcarpark.This complex, arecreation area, andthefi rst in It comprisesabusinesscenter, aresidential most long-expectedproject ofthecompany. Ermolaev CenterMixed-UseComplexisthe • Heading for a‘cityquarter’ development The projects underconstruction: with themostexactingoutlookonlife. and intendedfor thehigh-profi le clientele of upscaleobjects,unifi ed by asingleconcept Alef Estateiscommittedtotheconstruction landmarks for Dnipro andthewholecountry. boulevard anditsextension,allbecoming residential complexes,apedestrian 4 11 shoppingcenters, 5businesscenters, To date,thecompany hasimplemented Plans andnew objects Alef Estatetoday: shopping andentertainmentcenters, residentialcomplexes, mixed-use complexes, andsoon. concept development, design,construction,andcommissioningofA-classbusinesscenters, has two decadesofexperience inrealestatemanagementthrough thesystemapproach: the leading companiesinthefi Alef EstatehasbeenestablishedontheUkrainianmarket since2001andisnow among ALEF ESTATE Troitskyi ResidentialComplex Ermolaev CenterMixed-Use Complex this former ce part will revenue revenue eldofresidentialandcommercialrealestate.The company Dnipro Port CityApartment Complex, Ermolaev CenterMixed-UseComplex,Dnipro and historicalbuildings. The latterwillbe will beacombination ofcontemporary historical values inmodernlife. ARTEL gives aleadinpreserving the Alef Estate historical sight.For onemore time, being anationally-renowned reconstructed will comprise2buildings,oneofthose center, ARTEL, iscurrently underway. It This unusualfor Dnipro commercial • ARTEL Commercial Center picturesque embankmentofDnipro. multi-riseblocksandislocatedatthe 3 nice views. The Complexcomprises in harmony withnature andlove enjoying for thosepeopleactually–whoseektolive Apartment Complexisintended Port City landscapes andbeautifulscenery. Every urbancitizen missesnatural • Port CityApartmentComplex modern multistorey partadjacenttoit. eclectic moderndetailsandwillhave a house isgoingtobecomplementedwith Dnipro Perekhrestia ShoppingandBusinessCenter, of thecity. Alef Estate:Changingtheappearance on thereal estatemarket ofUkraine. make Dnipro even amore competitive player under construction.Eventually, they will Alef Estatehaseven more new projects quarter neartherailway station. shopping complextoform alarge shopping combined withtheadjacentreconstructed www.alef-estate.com [email protected] +380 (562)388 Dnipro 49000,Ukraine 7, HlinkyStr. 63 COMPANIES fl oor fl nd [email protected] Antika is a member of the Ukrainian Antika is a member of the Ukrainian 12, Khreshchatyk Str., 2 Str., 12, Khreshchatyk Kyiv 01001, Ukraine Kyiv +380 (44) 390 09 20/21 offi www.antikalaw.com.ua in Ukraine (USAID Project). The Firm also Firm The (USAID Project). in Ukraine Bank, the European advises the World Reconstruction and Development, Bank for TACIS. the and Industry, Chamber of Commerce and Industry, Chamber of Commerce Kyiv the American Chamber of Commerce Business the European in Ukraine, Chamber Association, the Canada-Ukraine of lawyers Club. The Energy of Commerce, of the Ukrainian the members are the Firm National Bar Association, the Ukrainian Bar Association, the International Bar Association. Antika's main principles are high Antika's main principles are Ukrainian are Clients of the Firm The Vasyl Sheretko, Vasyl Senior Associate well-known on the market: they have over over have they on the market: well-known legal experience in providing 20 years’ consulting. quality and timely legal services, strict to approach and a bespoke dentiality, confi client's project. every and international companies doing and and abroad, business in Ukraine industries including in various working chemical, telecommunications, heavy, industries, subsoil and automotive food, estate and real use, complex development, media construction, wholesale and retail, services nancial and sports, banks and fi Clients are representative The market. Group, ViDi Bavaria, AWT the following: of Companies, MF Telecom, Ibis Group of International Association Nadra Ukrayny, (AsMAP), of Ukraine Carriers Automobile Henkel Ukraine, IC PERSHA, Henkel Chornomornaftogaz, Bautechnik Ukraine, Ukrnafta, NPC Energobank, Ukrenergo, Deposit Guarantee The FC Dnipro, Shell, Fund (DGF), Cadogan Petroleum, s., Esan Eczacibasi Enesa a. Cargill, Materials, Ghelamco, Industrial Raw Group, Heitman, International Resources Lantmannen Axa, Imperial Tobacco, (The Group International Resources Project Reform USAID Municipal Energy rms in Ukraine. ovoy was ciency, ciency, and ovoy, The Firm received Legal Award Legal Award received Firm The Alexander Burt Partner Antika's team includes 15 highly- energy-saving. energy-saving. – a Firm 2012 in the nomination "Law is the Firm The of the Year". Breakthrough eld 2013 in the fi of the Legal Award Finalist of Antitrust, Litigation and Real Estate, in eld of Energy. 2014-2019 – in the fi The domestic and international professional domestic and international professional The Antika in the areas community recommends corporate of antitrust, dispute resolution, nance fi project banking law, law/M&A, estate, land law, real and capital markets, effi subsoil use, energy energy, ANTIKA LAW FIRM LAW ANTIKA named as the best lawyer in Ukraine in the in Ukraine named as the best lawyer to the International eld according fi Energy Legal 500 assessment The EMEA – 2020 Edition. of Antika Managing Partner got Kot Alexey Doctor of Law Firm, Law eld the fi in of the Year” the title “Lawyer The to the results of litigation according 2020. He was in Ukraine Best Lawyers in Best Lawyer as The also recognized 2015 Legal Awards by Competition Law and The Praktika) (Yuridicheskaya Best of the Scientist in the framework – 2017” of the Year Competition “Lawyer Association. Advocates' Ukrainian by cant signifi who have ed lawyers, qualifi elds of legal fi experience in various are of the Firm partners The practice. Antika Law Firm provides legal services to corporate and private clients since 2010. During this time, During this time, clients since 2010. to corporate and private legal services Firm provides Antika Law reputable by has been recognized market, in a legal advantage a competitive achieved the Firm has Europe, Global, Chambers Chambers Legal 500 EMEA, such as The and Ukrainian guides international Ukrainian Law Lawyers, and Corporate, Best IFLR1000 Financial and Infrastructure, IFLR1000 Energy Market The in Ukraine, 100 Best Lawyers Top Choice. The Firms of Ukraine, Client Law Firms, 50 Top fi of law Ranking Leaders. Partner Alexander Burt 64 COMPANIES malls, retail andentertainmentcenters, diff client withthemaximumpossiblevalue. purposefully combinedtoprovide our as well asconsultingservicesare commercial managementoffacilities client. Technical, infrastructural and approach inclosecooperation withthe company appliesacomprehensive commercial property activities.The Energy Management andConsulting. - • Energy Management: - Sensitive Environments. - Process Optimization; - Maintenance; Production andProcesses: • - FM-consulting. - Commercial Management; - Infrastructure Management; - Technical Management; • Integrated Management: Main areas ofactivity: processes. optimization ofreal estatemanagement Bilfi ngerHSGFacility Management. it was alsoknown asHSGZanderUKRand since2005.Duringitsactivity, in Ukraine companies inEurope. one oftheleadingfacility management international company APLEONAHSG– APLEONA HSGLLC isapartofthe Serhii Dmytruk, Director APLEONA HSG APLEONA HSGLLCiseff infrastructure, andcommercialproject managementandconsulting. erent typesof buildings(shopping Having extensive experiencewith Apleona isaleaderinoperating Our mainserviceistheoperation and The company hasbeenworking ective managementandserviceinthefi • Available confiOur advantages: rmed certifi ed Product innovations tosupportthe • Digitalsolutionsfor clients. • Improved andstandardized working • Ourbusinessmodelisfocused on • Highlevel oftechnicalexpertiseand • European platform andinternational • Apleona isalready awell-known • What makes usdiff facility. phase ofconstructionandoperation ofthe give professional recommendations atany logistics centers, etc.),ourexpertscan branched-net operators (communications), mixed-use complexes,businesscenters, Retroville, Kyiv Shopping andentertainment center to ISO 9001 (Quality), ISO 14001 9001(Quality),ISO 14001 to ISO management systems according processes. management, aswell astooptimize service andreception ofvisitors) orin core business(for example,insecurity procedures, reporting. clients andconsideringallfactors. always basedontheneedsofour a long-term relationship withclients – internal activities. borders. high-quality standards across national organizations thatprovide consistently business structure andmanagement net withperfect well-established providers. largest European real estateservices company intheworld andoneofthe erent? eldoftechnical, • IT tools. Transparency ofourservicesandtheir • Liabilityinsurance onbothlocaland • Multipleawards ‘IndustryLeader’. • Ocean Plaza,Kyiv Shopping andentertainment center www.hsg.apleona.com [email protected] +380 (44)5036329 Kyiv 04073,Ukraine 24V, StepanaBanderyAve. introduction ofnew contracts models). side, compliancewiththeSLA/KPIand customer offi eff global levels. (GEFMA-160). the SustainabilityinFMcertifi cate ISO50001(Energy), aswell as and ISO 45001(LaborProtection), (Environment), ISO27001(Compliance), ectiveness (for example,through ces for control ofclient’s 65 COMPANIES etc. eisen Bank Aval, +380 (44) 499 00 00 [email protected] colliers.com ArcellorMittal, Ukrtelecom. ArcellorMittal, Ukreximbank, UniCreditBank, Alfa-Bank, Raiff Respublika Park, Kyiv Respublika Park, Kyiv Retroville, Mall, Kyiv River The portfolio of current leading Kyiv retail retail leading Kyiv of current portfolio The comprises: projects Blockbuster Mall, Kyiv • Oschadbank, NBU, PrivatBank, PUMB, Oschadbank, NBU, PrivatBank, • DCH, ce Towers, ravan, an, Mandarin Plaza, Illinsky, Senator, UNIT.City, UNIT.City, Senator, Illinsky, (business centers, Kyiv): Kyiv): (business centers, ce Sky Mall, Karav ATB, Cola, ОSCЕ, UN, VS Energy, EBRD, Good Wine, METRO, VARUS, Dragon Capital, ESTA Holding, Ceetrus, Amtel Properties, Arricano Group, Stolitsa Group, Ka Piramida, Magelan, Livoberezhnyi, 4Room, Magelan, Livoberezhnyi, Piramida, Prospekt, Blockbuster, Alta Center, RayON, Art Mall; Gorodok, Aladdin, Ukraina, Gardens; Victoria AVE Plaza; NUVO is the fi park in the center business rst NUVO is the fi developed concept was project The of Kyiv. experts. Ukraine Colliers by City Garden, West Side, Infi nity, Park Tower, Park Tower, nity, Side, Infi West City Garden, Palace, Mikom Business City, Park, Victoria Astarta Breeze, Silver Nivki City, Organic, Placet, BC at Fabula Eleven, Europassage, BC at 35V Borychiv Tik Str., Str., 29 Kovpaka etc. BC at 22/24 Gogolivska Str., AND OUR CLIENTS IN VALUATION SERVICES: ADVISORY Ocean Plaza, Coca- Retroville, • • Cherkasy: Cherkasy Mall; Cherkasy: • Leopolis, King Cross Lviv, Forum Lviv: • Panorama; Sky, Odesa: Fontan • ; Dafi Vavilon, Passage, Dnipro: • Boulevard, , Frantsuzkyi Dafi Kharkiv: • City Center; Mykolayiv: • Zaporizhzhia: City Mall; • Plaza; Victory Kryvyi Rih: Sun Gallery, • Global UA. Zhytomyr: • Offi NUVO MAG.NETT, Business Park, IQ Business Center, Venetsiansky, M8, 101 Tower, SP Hall, Grand, Eurasia, LAVRSKIY, MERX, Dynasty, Gulliver, Toronto-Kyiv, Horizon Park, Prime, Podil Plaza, Leonardo, Prestige Offi Horizon Center, 2 enue $3.3B liates. Established in 67 countries Comprised of 18,000+ professionals 54,000 lease / sale transactions Annual rev Managing 186 mln m ce Retroville, River Retroville, Globus, Gulliver, Mall, – Landlord Representation – Landlord Representation – Tenant and include affi KEY PROJECTS: Retail: Blockbuster Mall, Respublika Park, Kyiv: • • Corporate • Corporate Solutions Services • Investment Services • Valuation • Advisory Services Building Advisory Green • OF COMMERCIAL CORE SECTORS REAL ESTATE: • Offi • Retail • Hotel • Industrial / Logistics • Mixed-Use CORE SERVICES: and Agency: Brokerage • All statistics are for 2020, are in U.S. dollars Global leader in real estate services and investment management. management. and investment in real estate services Global leader Ukraine since 1997. in Kyiv, operates Company COLLIERS INTERNATIONAL COLLIERS Alexander Nosachenko, Managing Director of Colliers Ukraine 66 COMPANIES 40,000 m premises withatotalarea ofmore than can easilymake fi nishing works for such staff the helpofprofessionals. The permanent impossible for themtodothiswithout to move toanew offi solution’. When large companiesdecide of alltypesandlevels asa‘turnkey is thedesignandconstructionofoffi • • • • • • • company: time andproject pricefor ourcustomers. can significantly reduce theimplementation design department andarchitectural bureau experience inconstruction,andourown commercial premises. We have ahuge engineering works for alltypesof We designandcarryoutfi t-out and Managing Partner Pavlo Podtopta, works inoffi Denza Constructionperforms afullrangeofdesignwork, fi DENZA CONSTRUCTION of professionals ofourcompany One ofthekey areas ofourbusiness object ontime. general cleaningandhandover ofan or trade equipment; design andmanufacture offurniture partitions inafacility; production andinstallation ofglass complexity; fi t-out andengineeringworks ofany from localandforeign manufacturers; construction andfi nishing materials ordering anddelivering all networks; documentation ofengineering development ofaworking development ofdesignprojects; The mainservicesprovided by our 2 at thesametime. ces andothertypesofcommercial premises. ce, itlooksalmost ces with thetotalarea more than11,000 m and fi nishing works intheoffi which we madethefullcomplexoffit-out Fozzy-Food (theretail chainSilpo),for of thesecustomers was thecompany Ukrainian andglobalcompanies.One 4 months. The project scope: designproject design project. looks exactlylike thevisualizations inthe new offi carried outfi t-out works andcreated the of homecomfort. (indoor plantscaping) gave anatmosphere furniture withsoftelements, andplants and materials suchascarpettiles, metal elements gave thisspaceastyle, design project. Decorative bricksand in Kyiv (photos2),we created aunique it excellently turnedout.” you want tocomethere. And,Imustsay, ‘mood’: theoffi wishes, themostimportant was the of theoffi Volodymyr Savenkov: “Asfor thedesign co-founder oftheVOKI Gamesstudio VOKI Games.The direct speechofthe quality (photos1). the budget,deadlines,andhighest the Client’s expectations, including all in strictdeadlinesandaccording to Our clients are industryleaders in Duration oftheproject for VOKI Games: Keeping inlinewiththebudget,we For thenew offi Another ofourlatest projects is ce for the company, whichnow ce, apartfrom thetechnical ce shouldbetheonethat ce ofVOKI Games t-out, andengineering ce in Kyiv in ce 2

• • • • • • materials. engineeringsystems,supplyofthe the fi t-out andfi documentation, thewholescopeof nishing works including executive documentation, development of working development, development of www.denza.com.ua [email protected] fax: +380(44)379 36 08 tel.: +380(44)379 36 07 Kyiv 03150,Ukraine 86B, Kazymyra Malevycha Str. relocation assistance. offi structures; service maintenance ofbuildingsand obtaining permits; warranty andafterwarranty service; maintaining ofconstructionprojects; We alsoadditionally provide: ce furniture rental; 67 COMPANIES development feasibility studies. feasibility development and tender acquisition, procurement supervision. t-out support, fi process development. the project services. development fee handbook development. 18V, Mykhailivska Str. Mykhailivska 18V, 01001, Ukraine Kyiv +380 (44) 379 48 95 [email protected] www.dhi-architecture.com Residential complex, Kyiv Residential AL Maktoum International Airport, Dubai, UAE AL Maktoum International • Master planning and urban planning. • and master planning, analysis Best-use • Landscaping. design. • Interior • nding design and graphics. and equipmentxtures, Wayfi • fi Furniture, • Building consultancy at all stages of • services and project EPCM contracting and tenant coordination Tenant • cient architectural solutions. solutions. architectural cient The founder of the company, of the company, founder The portfolio: personal Among the founder’s to delivery. initial concepts through with internationalin collaboration to the localconsultants according requirements. market Retroville shopping center, Kyiv shopping center, Retroville Residential complex, Odesa Residential the right vector of development at the very of development the right vector which project, early stage of a development costs in the our clients to reduce allows t. maximum profi and receive future Andrey Deakin from graduated Yatsentuk, he 10 years, over For (Australia). University in Ukrainian, on projects has been working of various CIS, and international markets conditions. scale and programmatic Mall, Lavina Department Store, Central Kyiv Blockbuster Mall, Ocean Mall (all in Kyiv), Alexander Plaza (Zaporizhzhia), ATRIUM Belarus), mixed-use complex (Mogilev, includes DHI’s portfolio others. and many Mall’s new as Sky such landmark projects and Inn Hotel renovation, extension, Park the only shopping center opened in 2020 in the capital – Retroville. scope of services of the company The includes and not limited to: • services from Full scope of architectural • Adaptation and concept development • Engineering concept development.

2 Thanks to Thanks When working When We are willing are We Providing consulting Providing We reduce our costs reduce We Our company provides consulting provides Our company ective Consulting. ective services for the concept development of the concept development services for estate real and other commercial retail analysis starting with marketing projects concept design and up to architectural help to choose nancial analysis. We and fi services, we take responsibility for the for responsibility take services, we to act ready are We of our work. result on further stages of the project as a partner team and design development as a core contractor. as a general Project Cost Reduction. Project Eff the foreign partner network, we have have we partner network, the foreign leading globalthe opportunity to attract companies to our projects. architectural the reduce we architects, with European part delivering by the project nal cost of fi our local team. by produced of the work International Experience. by inviting only the necessary specialists inviting by to the scale and complexity ofaccording needs. and its real the project Smart Management. or as a share in the business.or as a share Andrey Yatsentuk, Andrey Founder to co-investors, the risks, become share in m up to 50% of the payment and receive Flexible Partnership. The main advantages of working with us of working main advantages The We are architects, engineers, urbanists, and designers with international experience in commercial in commercial with international experience urbanists, and designers engineers, We are architects, and the end interests of business in which the projects develop We real estate design. and residential one another. and strengthen each other but complement do not compete with consumer Design Hub International is a team of experts in creating effi in creating of experts International is a team Design Hub DESIGN HUB INTERNATIONAL HUB INTERNATIONAL DESIGN 68 COMPANIES business processes. for creating ideasandbuildingeffi • WE TRANSFORM construction work. architectural, engineering,structural, and on allissuesrelated totheprovision of to achieve highresults andhelpourclients • WE CREATE project. participate inallstagesofwork onthe to develop integrated solutionsand backgrounds, whichmakes itpossible • WE UNITE of the environment thatwe create. at aperson who,asaresult, willbeauser thiscase,eachofourprojects isaimed In ensure maximumreturn oninvestments. should beeff segment, we are well aware thatinvestments Focusing onthecommercial real estate implementation ofprojects withintheminimumperiodoftimeas a partagreedbudget. has beencreatingspacefor work andlife since2012.The Company’s work isaimedathigh-quality Design Prof specializesindesign,integratedproject management,andturnkey construction;the Company DESIGN PROF TEVA offi EPAM Systemsoffi rented spaceintoanenvironment high-quality projects where we want specialists withawidevariety of e yvCetv ure ookn,Ki SERVIER offi Creative Quartercoworking, Kyiv ce, Kyiv ective, and our main goal is to ective, andourmaingoalisto ce, Kyiv cient

PHOTO: SERGIY KADULIN and engineeringequipment ofinternal dismantling, construction, decoration, Integrated construction works • limited resources. conditions ofinformation variability and refurbishment, ornew construction)under developer’s fi nish, fullrepair, modernization, successful designimplementation(standard The integrated approach isthebasisof and control work withintheproject. • Project Management corporate policy, andwishes oftheclient. will correspond tothecurrent trends, interior designfor offi specialists willcreate theoptimal and thenumberoffl oors, DesignProf • Design Main services: own commercial space. quickly adjustbusinessspaceinrented or • WE HELP We provide apackageofserviceson We undertake toplan,coordinate, Regardless ofthearea ofthepremises companies ofallsizes toorganize or

PHOTO: SERGIY KADULIN ce premises which premises ce Business centerArtGarmat,Kyiv

VISUALIZATION: DESIGN PROF PERFECT SPACE. DESIGN PROF:WEWILLCREATE YOUR and theUSA. from producers locatedinEurope, Asia, both ofUkrainian production anddirectly installation offurniture andaccessories concept ofthedesignproject. requirements oftheclientandgeneral and fi nd modelsthatperfectly meetthe • Interior decoration premises ofcommercial real estate. www.designprof.com.ua [email protected] +380 (96)7598208 +380 (44)5866324 Kyiv 03067, Ukraine 4, HarmatnaStr. We willselect,arrange thesupplyand We work individuallywith eachclient ce, Kyiv

VISUALIZATION: DESIGN PROF VISUALIZATION: DESIGN PROF 69 COMPANIES er er LED screens are Expomedia. are LED screens 84А, Peremohy Ave. 84А, Peremohy 03190, Ukraine Kyiv +380 (44) 502 39 87 [email protected] expomedia.com.ua we do our best to develop in this fi eld, eld, in this fi do our best to develop we off We attention. without distracting conditions to any individual partnership eld of LED screens. customer in the fi er our er indoor er Every order is unique for us, and it is unique for order Every of our company second direction The to is welcome enterprise Every has certain features that should be paid that has certain features exhibition example, for to. For attention off we stands and conferences ne bits, with fi special screens customers the observation reducing which allow the increases This distance to 1-2 meters. of comfort. level viewing of and maintenance is sale, installation, maximally committed are and we screens, can easily to this task. In Expomedia, you stands, advertising media facades, order off and LED signs. We billboards, a salon, own So if you as well. screens it’s highly or a shopping center, store, will become our company that probably partner. reliable your in specialize and develop us. We contact day, Every is, screens. that one direction,

owever, ifowever, If you just want just want If you roved partners. partners. roved The company has 2 directions: rent rent has 2 directions: company The So how did we manage to achieve manage to achieve did we So how in our work? The answer to this question answer The in our work? only: in 2 words can be expressed VJs experience and team. Professional than 10 years more and technicians have experience in our company of work all the details of equipment and know We and setup perfectly. installation and level of any to events screens provide both on work regularly We complexity. Ukraine Palace the Kyiv’s sites, like large open air of Sports, large and the Palace events. and small corporate festivals, used actively are our screens Moreover, perfectly are because they on television, lming. TV fi suitable for Over the long time of its work, Expomedia Expomedia the long time of its work, Over experience in the invaluable accumulated A events. various for screens providing – festival party or a large small company our team will get the things that be sure done. and sale of LED screens. to rent a screen, of course, our company our company of course, a screen, to rent H this possibility. you will give technical need the comprehensive you came to you of the event, maintenance Expomedia will place as well. the right light, with all the required you provide audio, video, and stage equipment, the app involving and nature of the event Independently technical support be sure: complexity, will be on the highest level. price-quality trade-off value the excellent Being present on the LED screen market for over 16 years, Expomedia Expomedia 16 years, over for market on the LED screen Being present countries. and in foreign both in Ukraine the tremendous experience accumulated EXPOMEDIA Yurii Trofymov, Director Trofymov, Yurii 70 COMPANIES We demonstrate indisputable indicators • We chooseinnovations. • We value partnership. • We actaccording toclearinternal • We are lookingfor anhonestfeedback • We consider thecustomer’sneedasour • We are guidedonlyby thehighest • OUR BASIC PRINCIPLES: in Ukraine andintheworld. andotherleadingcompanies Novo Nordisk, BAT, OLX,IDSBorjomi,PUMA,Regus, center there are suchcompaniesasJDE, Estate Project Awards 2015. results oftheEasternEurope and Asia Real Offi Real EstateAward CPAWARDS 2017and the A BusinessCenteraccording totheNational IQ SERVICE was recognized astheBestClass explosives techniciansandcynologists. with unmannedsystemsandinspectionof cleaning accompaniment,securityservice accounting, marketing, administrative and been perfectly honed:legal,engineering, activity, allareas ofIQSERVICE have Over theyears ofprofessional management Director Victoriia Fedo includes theclassA+IQBusinessCenterlocatedinKyiv. employee’s experience ismorethanadecadeintherealestateindustry. The company’s portfolio Since 2014,IQSERVICE hasbeenproviding afullrangeofrealestatemanagementservices,andeach IQ SERVICE ce Project oftheYear according tothe of financial success. protocols. from residents. top priority. standards. Among theresidents ofthebusiness IQ BusinessCentermanagedby rova, produce new meanings. Universe inwhichpeoplewant tolive and eff space for bigbusiness. ective management,we buildaholistic We donotjustrent spaceandprovide OUR MISSION is to create a model istocreate amodel iqbc.ua fedo +380 (66)8125530 Kyiv 01014,Ukraine 13-15, Bolsunovska Str. [email protected] 71 COMPANIES Domosfera Shopping Mall Domosfera Highway 101, Stolychne 03031, Ukraine Kyiv +380 (50) 414 40 71 146, Zalizniaka Str. Cherkasy 18028, Ukraine +380 (50) 414 40 71 www.manezh.ua We love what we create. we what love We than our product... more are We − it's special... world our own create We you... to open it for ready are And we KAN Development, UDP, UDP, KAN Development, Alef Estate, SAGA Development, KADORR Group. Renault. Mercedes-Benz, on JZL, Veranda is Pivbar, Grill, This ZUMA, M1 Club Hotel. Mr. the river, Wargaming. MacPaw, Design YOD YoDezeen, Architects, Makhno Sergey Lab, balbek bureau, SBM Studio. Architects, ARSO facade system, private object system, private ARSO facade M-Ocean pergola, This is Pivbar This M-Ocean pergola, • Development companies: • Development • Volkswagen, BMW, Car dealerships: • Argentina Citronelle, Restaurants: • IT companies: Сiklum, SoftServe, • studios: JK Lab Architectural ciency; ciency, turquoise turquoise ciency, approvals; 2015; CE); 12 years; for 12 patents and 4 TMs; supervision; outdoor and high-altitude work; effi energy and made in Ukraine organizations, trends; principles, KAIZEN partners; management, sales, and personnel training; culture corporate Morris Space’. ‘Irrational Glusco, SOCAR. Dnipro. Bank Credit Bank Vostok, Maryna Diachenko, СЕО Maryna Diachenko, MANEZH today is: MANEZH today • (ISO 9001- manufacturer Ukrainian • system implementing of the KAIZEN • solutions, of own developer • line of M-Ocean pergolas; • solutions LITE; line of typical terrace • systems ARSO; line of facade • consultations, service, installation, • REVIT; in 3D programs, work • effi calculation of energy • the right to perform license for • safety • and abroad; Ukraine all over work • 7,500 implemented projects; over • friendliness, environmental follow we • installation for projects training • project educational and cultural are: customers Our key • WOG, OKKO, Gas station networks: • Bank, Oschadbank, Banks: Universal MANEZH MANEZH is the manufacturer and developer of sun protection systems on the Ukrainian systems on the Ukrainian of sun protection developer and the manufacturer MANEZH is holds the leading MANEZH in August 1995. Nowadays, founded was company The market. systems production, of terrace and facade in the sphere the Ukrainian market position in and textiles. systems sun protection as indoor as well 72 COMPANIES certification for residential buildings, the company’s specialistscarry out several objectssimultaneously. Now, real estate;thisallows certificationof commercial, residential, andindustrial of experienceincertification accredited assessors with15years standards. The company has three with BREEAM,LEED,andWELL and ‘healthy buildings’inaccordance company ofcertificationgreen technologies andmaterials. and confi rmation oftheusesafe of ecologicalconstruction–aguarantee project, includingthrough thecertifi cation of asquare meterandthecostof positive eff operational waste management. fi nishing materials,andconstruction procurement control ofconstructionand water-effi that signifi cantly consumeenergy, useof for equipmentorengineeringsystems practice istheinstallationofsub-meters sustainable construction.Onesuch in thefi eld ofenergy effi and applybestinternationalpractices encourage more developers toobserve responsible useofnatural resources Modern trends intherational and Founder andCEO Mykola Gerasymenko, and renewable energyinEurope. both from largeUkrainiancompaniesintherealestatemarket and from developers ofgreen areas development ofrenewable energy, andgreencertifi the well-known inUkraineasetof‘air-waste-subsoil use’butalsothetraditionalecology–surveys, MCL provides environmental andengineeringservices.Underecology, MCLmeansnot only MCL MCL isalicensedassessor As aresult for developers, thishasa cient fi ttings, grey orrainwater, ect onimproving thequality iny and ciency In-Use International scheme. and BCHorizon Park undertheBREEAM International New Constructionscheme the Interimcertifi cate undertheBREEAM residential development DIADANS with BREEAM. In2020,MCLcertifi ed the of residential buildingsaccording to weightings for theassessmentcategories standard, determinedand the authorandoperator oftheBREEAM in closecollaboration withBREGlobal, and optimizationofitsoperating costs. impact ofabuildingontheenvironment represents thereduction ofnegative of highstandard andquality, which on thereal estatemarket asanobject certifi cate istopromote theproject and obtainingaprestigious international plant, andaninnovative businesspark. offices, ashoppingmall,anindustrial Residential Residential development UNIT.Home, Kyiv In 2019,theMCLworking group The mainpurposeofcertifi cation development cation.References ofthecompany areavailable DAAS yvBusinesscenter HorizonPark, Kyiv DIADANS, Kyiv approv ed the www.mcl.kiev.ua [email protected] +380 (66)1368933 +380 (44)2904359 04053 Kyiv, Ukraine 77, Sichovykh Striltsiv Str., offi ce 300 73 COMPANIES ce 18 ce erent erent textures, eliable materials. Modern Corporate credo Corporate that modern believes MDT Kyiv 03039, Ukraine Kyiv +380 (44) 388 37 00 [email protected] mdtgroup.com.ua 13, Demiivska Str., section 2, offi Str., 13, Demiivska technologies allow creating beautiful, creating technologies allow however r can create facilities manufacturing that imitate diff products and can oors, fl or concrete aged trees like individual designs. By placing also create a huge step to make with us, you an order idea and design. implementing almost any erent erent segments, a complex approach ers

erent materials for interiors. The company has been company The interiors. erent materials for ces and data centers; Products of MDT Group have been have Group of MDT Products Services off Group MDT • raised fl oors; fl • raised • acoustic panels and modules; • aluminum and glass partitions; • ceilings. used in diff now and are such as: • offi • hotels; • gyms; showrooms; • automobile areas; • residential • shops; • showrooms; centers; • medical • cinemas; • salons. and restaurants; cafes • beauty to working with clients. It includes to working installation and support services during and accurate of work, the whole process nished projects. fi already for guarantees post- can also provide Group MDT support to its clients. guarantee of 2 erent erent cial distributor of diff Products quality is product Group, MDT For Basic materials: and tile carpets, PVC and broadloom ooring, and dust fl linoleum, entrance systems; control MDT GROUP MDT working since 2012. MDT Group’s activity is based on innovative products for commercial areas. commercial for products innovative activity is based on Group’s 2012. MDT since working MDT Group is an offi Group MDT the main priority. All of the materials the main priority. with ecological and correspond are including green international standards, LEED and BREEAM. building standards chooses only modern company The with a wide selection of diff products commercial areas were equipped thanks to were areas commercial is only a part of projects This Group. MDT which has the company, completed by clients such as Novus,thousands of happy KAN Development, Samsung, Ferrero, DTEK, OLX. Jaguar, PrivatBank, Makhno Architects, designs. tiles LVT, vinyl oor coverings: fl • Today, MDT Group is ranked among the top is ranked Group MDT Today, ooring, suspended in fl companies specialized and acoustic ceilings, glass partitions, and withsound-isolating panels. It cooperates For factories. 40 leading European around than 100,000 m more the last 9 years, 74 COMPANIES f130 m of 1,300 the project team,theproject withanarea aspartof colleagues ofMG Management project managerSerhiiHaponiukandother to thefulldedicationofresponsible implemented in2020Kharkiv. Thanks the ITindustryofUkraine, whichwas theleadingcompaniesin of oneof very creative andmodernoffi the few years. Amongthem,there isa complexandinteresting projects over of team was abletoimplementalot management methods,MGManagement’s management andapplicationofmodern achievements. Thanks totheskillful have experienceandmany signifi cant results. Despitetheirage,they already who prove The teamconsistsofyoung professionals full-cycle servicesincommercialconstructionandimplementationofturnkey projects. MG ManagementistheUkrainianbuilt-to-suit company, founded in2016,whichprovides MG MANAGEMENT the assigned tasks but is focused on mutual the assignedtasksbut isfocused onmutual • offi procurement andinstallationof facilities • manufacture andinstallationofindividual • procurement offactory furniture; • • manufacture, procurement, and installationoflow-current SCS,ACMS, • installationoflightingandpower • fi• alldisassemblyandassemblyworks; nishing • works; executionofdesignworks (architecture, • general • contract; package of turnkey services,including: The company performed afull 3.5 months. MG Management does not just carry out MG Managementdoes notjustcarryout and equipment; cabinet andupholstered furniture; installation ofglasspanels; system; Evoko conference hallreservation CCTV systemsandinstallationofthe supply systems; engineering decisions); ce decoration. 2 it every day with their iteverydaywiththeir was fully commissioned in was fullycommissionedin ce project project ce We provide warranty andfullsupport • Systematicselectionofmaterialsfor a • • Compliance withtherequired Competentapproach withcustomers. • due to: the company’s teamhasimplemented. many examplesof‘turnkey’ projects that Managementportfolio, you willfiMG nd by theirletters ofthanks.Inthe implemented projects, asevidenced repeatedly beensatisfi ed withthe with highquality. Ourcustomers have is thatwe perform ourresponsibilities to commissioningofthecompletedproject. that includeallstagesofwork –from design provide individualbutfullpackageservices strive todevelopandimp understanding withtheclient.Ourspecialists Playrix offi completion. during operation afterproject party andthetotalproject budget. specifi c designbasedonthefi nance ergonomic characteristics. requirements ofsafety andoperation, furnishing ofpremises concerningall standards. We carryoutdesigningand full reporting. as well asanimplementationplanand concepts, detailedbudgetcalculation, suggest arange ofalternative design We evaluate thegoalsandtasks, The company standsoutinthemarket The bestachievement ofourcompany ce project, Kharkiv rove. We do not do not their timeandprefer togetaqualityresult. the responsibility ofMGManagement, others. These companiesappreciate and Clinic,Vigo Group, Everad, Axel ED&F Man−Ukraine, Perrigo Ukraine, Asters, EPAM, Cropio, Codeminders, and reputable companiessuchasPlayrix, collaborated withwell-known brands cooperate withandtrustMGManagement. organizations andinternationalresellers digital sector, CPA chains,aswell aslegal IT industry, pharmaceuticalindustry, www.mgmanagement.com.ua [email protected] +380 (44)3387114 Kyiv 03022,Ukraine 1, SumskaStr. City ZENPark BC MG Managementhasrepeatedly A lotofleadingcompaniesfrom the 75 COMPANIES 9B, Pushkinska Str. 01034, Ukraine Kyiv +380 (67) 502 81 22 [email protected] mossdecor.com.ua all during any Promotional preserved moss gifts. preserved Promotional Such gifts will be automatically favored above campaign and may promotional friendly highlight the environmental product. of your nature and solutions 'living' products Green ered by Moss Decor will be of by ered immediate interest to both private clients to both private immediate interest and big companies. • off

Walls of preserved moss of preserved Walls Vertical garden of preserved moss of preserved garden Vertical and plants. Moss logos and installations may the attentionbe designed to attract positive of guests and clients, evoke emotions among employees, and highlight the environmental present. you friendliness of the product Moss Decor is a Ukrainian company company Moss Decor is a Ukrainian care; any and plants do not require easily installed and need no are they decorated walls The supply. water with moss needs no additional light you or maintenance, or fertilizers; in any garden install a vertical may with including premises premises, the lack of light, which constitutes ordinary over another advantage plants. moss logos and signs. Preserved The Company’s services: Company’s The • Our company began to manufacture moss began to manufacture Our company positive With rst. among the fi products clients, Moss from feedback Decor experience and started to acquired of imported range with a broader work variety a greater created materials, having moss and plants. of preserved thanks to a tightly that has made progress knit team who has little changed since Moss Decor Gradually, its formation. has examined the opportunities to make to use in the materials available natural of manufacturing. process • MOSS DECOR MOSS Moss Decor is a leading company in the production of green panels, preserved green panels, preserved of in the production is a leading company Moss Decor and exterior. interior elements for and natural decorative moss products, Ihor Avramenko, Founder 76 COMPANIES development. the constant search for new areas of the usageofinn clients. help toimp into dynamicallydeveloping businessesand support inyour businessdevelopment. of investment holdingPro CapitalGroup. economic sectors. The company isthepart for over 1,000clients from diff researches, over 500investment documents 1,900 analyticalreports andmarketing During thistimewe have conductedover Pro-Consulting was establishedin2004. research, analysisofcommodity, andfi Pro-Consulting isoneofthemajorplayers inUkrainianconsultingservicesmarket inmarketing PRO-CONSULTING CEO Aleksandr Sokolov, develop marketing strategy • determinegrowth directions; • clearupcurrent andexpectedmarket • • analyze prices,products, and identify competitors’ strengths and • defi netarget audience; • determinethenicheonmarket; • With ourhelp you willbeable to: contributing toourclients’ prosperity. strategy, andfi services inmarket research, marketing nancial consulting, Our Our Our Pro-Consulting off trends; placement ofproducts onthemarket; weaknesses; Strategy Mission Aim rove rove isthedynamicgrowth with the fi nancial welfare ofour istoattract investments isproviding highquality ovative technologies, es professional ers . erent economic sectors. contains over 60,000 reports onall from over 2,000 open sources. It information collectedby ourspecialists selection ofstatistical andanalytical Analysis’ product – We alsoprovide the unique analytical markets). Export consulting(entryonforeign analysisandmarketing strategy of • consultingonfranchise creation and • analyticsandconsultingfor franchise • • franchising consulting; • providing conceptofthemost investment risksanalysis; • • investment analysisofmarket Investment analysis: • predictive dialingandvoicemail contact database update; • • mystery phonesurveys (CATI);calling; • Call Center: • digital analysis,onlinestrategy • media strategy implementation coordination; planning; • • brandbook development; • marketing audit; • marketing strategy development, Marketing strategy planning: analysisofenterprises’ activitiesand • • market passport; marketing research (surveys, focus • analyticalmarket report; • Analysis andmarket research: OUR SERVICES nancialmarkets aswell asstrategicplanning. franchise. development; purchase; eff sectors; sending. development. implementation, andmaintenance; databases provision. online surveys); groups (withtheequippedroom), ective assetuse; . This isthestructured online database‘Market Shell andothers. Lubricants Ukraine, Johnson&Johnson, Medical, Agroholding Avangard, Lukoil Alliance, Paul Hartmann,Mercator Arzinger, McDonald’sUkraine Ltd,Milk Corporation, NestleUkraine, Roshen, Oschadbank, L’oreal Ukraine, Hyundai (BNP Paribas Group), Alfa-Bank Ukraine, Our majorclientsinclude: servicesandother. • transportation andlogistics; • • telecommunications; • real estate; • construction machineryandautomotive goods; materials; • • consumer goods; • industrial retail andHoReCa; goods; • bankingandfi nancialsectors; • • food processing; • metallurgy; chemicalandpetrochemical industry; • medicineandpharmaceutics; • • agriculture; Our clientsare theleaders intheareas: www.pro-consulting.ua [email protected] +380 (44)3708710 Kyiv 01133,Ukraine 1, Laboratornyi Lane,sections3and4 UkrSibbank UkrSibbank 77 COMPANIES [email protected] 15A, Leiptsyzka Str. 01015, Ukraine Kyiv +380 (44) 490 68 37 offi www.schueco.ua On January 18, 2021, Schüco turned 70! ovative ovative opened 2 ce. 2016 – complex investment 2016 – complex investment In 2017, Schüco presented inn Schüco presented In 2017, expanded In 2018, the company 2013 – Schüco introduced the 2013 – Schüco introduced in Bielefeld. The construction started in Bielefeld. expanded followed was logistics center offi the construction of a new by products and services at the leading BAU the leading BAU and services at products exhibition. international cally, specifi More range. its product Sälzer GmbH, an expert it acquired AG, in security systems, and Soreg of high-end sliding a manufacturer systems. head. The company focused on two key key on two focused company head. The namely metal and PVC. areas, tting generation. concept and the new Parametric SimplySmart fi In December 2013, an exhibition of 800 m with an area pavilion more than 80 countries. in ces can be found ce buildings. In 1951, Heinz Schürmann founded founded In 1951, Heinz Schürmann started 1970s – the company The the 1980s – Schüco entered The and 1990s – East Germany The 2000s – Schüco expanded its The 2005 – the Schüco Technology Engelhardt In 2012, Andreas Schüco develops and supplies system solutions aimed to manufacture windows, windows, to manufacture solutions aimed and supplies system Schüco develops systems. and sun protection sliding structures, security facades, doors, offi representative The company’s More than 5,500 Schüco employees Schüco employees than 5,500 More to retain day every work the world around today in technology and services leadership this goal in mind, it With and in the future. all on customer needs at focuses invariably thefrom stages of the construction process: idea and design to therst implementation fi and offi and use of residential What was Schüco’s path and what formed and what Schüco’s path was What its success story? in Porta Heinz Schürmann & Co Germany. in northwestern Westfalica he made the help of six employees, With and protective awnings, shop windows, of his house. in the backyard screens of the manufacture supplying systems for It set up and doors. aluminum windows and Germany throughout branches new expanded its sales network. rapidly thanks of Europe markets international It also began to its licensed partners. and PVC market a promising to develop range. expanded its product need to a heavy faced Eastern Europe buildings using environmentally renovate Schüco friendly building materials. and set up a new trend that anticipated systems. namely solar energy direction, a turnover reached In 1990, the company thanks to the of 1 Deutschmarks a year construction boom. South activities in the United States, metal areas: America, and China in three PVC, and solar systems. structures, became a top expert company The in sustainable solutions environmentally building envelopes applied to arrange fashion. in an integrated became an Germany in Bielefeld, Center for ed laboratory and certifi independent and facades. doors, testing windows, assumed the position of the company SCHÜCO 78 COMPANIES a comfortable working place,ameeting movable partition-walls allow organizing considering theCO-WORKING venue. The exhibition objectsinthe location designallows organizers toplace for organizing exhibitionsandfairs. The welcome upto500people. and openarea, whichallows you to advantage ofSPACE isaloft-style design into several more “chamber”spaces.The the venue canbezoned by dividingit Depending ontheformat ofaceremony, than 650m perspective. The area ofthishallismore Kyiv UBI Conference HallCO-WORKING, UBI Conference HallSHOW, Kyiv total area oftheSHOWvenue is700m technical zone for backstageaswell. The that canbeusedasafood court.Ithasa mentioning thelarge clubarea andthetent addition totheopenterrace, it'sworth to theevent, makingitone-of-a-kind.In it addsaspecialandoriginalatmosphere SHOW canhostevents ontheroof terrace; events isSHOW. Duetoagoodlocation, The idealplacefor lifestyle, fashion, orart UBI CONFERENCEHALL locations, eachofthemfeatures itsuniquestyle. since 2012. Taking intoaccountcurrenttrendsandneeds,thecompany off UBI Conference Hallhasbeenproviding complex solutionsfor businessandlifestyle events more than900m For businessnegotiations,itisworth The hallFUSIONisthebestoption SPACE isalocationwith anarea of 2 . 2 , usedfor large events. most favo rable 2 . location ismore than125m room for 80attendees.The totalarea ofthe CO-WORKING canbeusedasaconference room or, for example,aconference room. hall for 20attendees,anda500m lounge-, andcoff translation. The venue includeswelcome-, or aconference withsimultaneous multimedia solutionsfor videoconferencing eco-conferences, andtraining events. is idealfor teambuilding,scientifi c and the Nature Park Beremytske. NATURE venue was openedontheterritoryof and popularityofeco-leisure, theNATURE closed parkingfor 40cars. exhibition area. The territoryhasprivate 1,000 m The totalarea ofthelocationismore than Kyiv region toholdhugebusinessevents. for 20-60people,andanexhibitionarea. 2studyrooms hall for upto55 attendees, simultaneously, as itincludesaconference several lectures, seminars, ortrainings of thelocationisabilitytohold for training events. The advantage UBI Conference HallFUSION,Kyiv Kyiv region UBI Conference HallBUSINESS, Taking into accounttheimportance BUSINESS is an ideal venue in the BUSINESS isanidealvenue inthe The conference hallSTUDY serves 2 . It is equipped with technical and . Itisequippedwithtechnicaland ee-zones, aconference 2 . 2

the atmosphere! choose theformat oftheevent –we create individual planningandjointwork. You The successofanevent isaresult of full range ofevent organization services. Hallistheproviding ofa Conference UBI living iftheevent lastsmore thanoneday. with alltheamenitiesfor acomfortable park, there are alsotentsandeco-houses high-quality events. Ontheterritoryof is equippedwitheverything necessaryfor in anamphitheaterseating.The location is 118 m is 118 The totalarea ofthisconference facility Chernihiv region UBI Conference HallNATURE, www.facebook.com/ubi.hall www.ubi-hall.com.ua [email protected] +380 (44)4519274 Kyiv, Ukraine The specialthingabout ers 7modern 2 for welcoming upto100guests 79 COMPANIES President Hotel President 12, Hospitalna Str. 01601, Ukraine Kyiv +380 (44) 256 32 56 [email protected] Bristol Hotel 15, Pushkinska Str. Odesa 65014, Ukraine +380 (48) 796 55 44 [email protected] Hotel Londonskaya Blvd. 11, Prymorskyi Odesa 65026, Ukraine +380 (48) 796 55 44 [email protected] vhg.com.ua Bristol Hotel, Odesa Hotel, Odesa Londonskaya Bristol Hotel, Odesa ), 2 ), 2 ), 2 ), capacity 2 ), capacity 2 erent thematic erent o (80 m up to 80 guests. capacity up to 450 guests. capacity up to 160 guests. in diff 3 meeting rooms design. business meetings. (213 m Legendary hall Aivazovsky capacity up to 200 guests. to 20 guests. 5 modern meeting rooms for for 5 modern meeting rooms meetings, negotiations, interviews, workshops. at your notepads, pens, water disposal. additionally. ordered (460 m Ballroom Grand Windsor • (45 m 2 meeting rooms • Hall (190 m Conference Greenwich at Bristol Hotel 5* Meeting rooms (Odesa): • • negotiations and private Ideal for • up to 20 guests. for Meeting rooms and banquets Conferences Hotel 4* (Odesa): at Londonskaya • • Historic hall Boff Meeting space at President Hotel 4* at President Meeting space (Kyiv): • • to 20 people. up for Meeting rooms • Internet, screen, Flip charts, • in-box catering can be Catering or • stations. Phone charging and banquets Conferences at Bristol Hotel 5* (Odesa): • lways a comprehensive a comprehensive lways tness club in Odesa – Formula. tness club lunches, gala – breaks, ee areas 17 modern banquet and conference 17 modern banquet and conference capacity to 400 guests. rooms, equipment. of any events experience in organizing complexity. Holding an event and accommodation Holding an event in one place. dinners. station. presentations. once. Meetings – corporate meetings, Meetings – corporate business talks and presentations, business lunches. team building, and programs, tours holidays. corporate training, seminars. forums, congresses, tours. and press PR events events, Conferences and banquets Conferences Hotel 4* (Kyiv): at President • • selection of technical Large furniture. • Ergonomic • of catering services. range Wide • of team and years Professional approach, 5 stars service and valuable service and valuable 5 stars approach, bonuses: • • drink zones. Welcome • Coff • and SPA. Lounge – areas • Odesa). Location – city center (Kyiv, • with an electric car charging Parking • and video equipment for Audio • at Ability to host multiple events Vertex MICE is an “on a turn-key basis” is an “on a turn-key MICE Vertex events: of your for any • • or motivational – incentive Incentives • – conferences, Conferences • – exhibitions, image Exhibitions MICE is a Vertex VERTEX HOTEL GROUP HOTEL VERTEX Vertex Hotel Group is a group of companies, specializing in hospitality, wellness, wellness, specializing in hospitality, of companies, is a group Group Hotel Vertex hotels in Kyiv 4-5-stars includes three portfolio company’s real estate. The and commercial of the best Hotel), and also one Hotel, Londonskaya Hotel) and Odesa (Bristol (President premium fi

PROJECTS / NEW SUPPLY

BANKHOTEL ...... 82 Business Center S26 ...... 83 Business Retreat Avenue ...... 84 Derenivska Kupil ...... 85 Edem Resort Medical & SPA ...... 86 FRANKLIN ...... 87 Citadel-2 ...... 87 Globe Runner Hotel & Hostel ...... 88 Gulliver ...... 89 Horizon Offi ce Towers ...... 90 іbis Styles Lviv Center ...... 91 LUWR ...... 92 М8 Business Сenter ...... 93 Space4 ...... 94 Toronto-Kyiv ...... 95 82 BANKHOTEL BANKHOTEL hospitably welcomed the guests and residents of the city on June 8, 2018. The hotel is located in the historic part of Lviv in a renovated building of the former Austro-Hungarian Bank, which was built in 1914. PROJECTS

The main design idea is the maximum preservation of the historical appearance of the building as an architectural monument. The elements of the interior that weren’t changed fundamentally include: • lobby with marble staircases and stained-glass windows; • ceramic fl ooring in the lobby on the ground fl oor and in the hall on the fi rst fl oor; • wall decoration with authentic eaves. BANKHOTEL has 6 fl oors and enjoy the panorama of the old town on the Also, in 2021, it is included in the top 101 rooms of diff erent price categories. terrace. The night art bar SATIRIKON in the 20 hotels for honeymoon in Lviv, top 10 best The author of the unique interiors of hotel serves specialty cocktails, and it also hotels in Lviv, top 5 luxury hotels in the city, rooms is Olha Riabova. She used graphic works as an exhibition of works of world- top 3 hotels for business travellers in Lviv compositions of French modernist artists famous cartoonists. according to Travelmyth. BANKHOTEL is Serge Gladkyi and Eduard Benediktus. Due The exhibition of two art projects nominated for the European Union Prize to this, each room has its unique pattern, ‘Banknotes and Shahs’ and ‘Coins’ for Contemporary Architecture – Mies van the main color of which sets the tone of by Victor Kudin runs in the hotel on a der Rohe Award 2022, which is granted the whole space and creates the feeling permanent basis. The main idea of the fi rst every two years in Barcelona (Spain) at the of the special artistic atmosphere of the project is to familiarize with banknotes expense of the European Union and the beginning of the 20th century. that were in circulation in the Ukrainian Mies van der Rohe Foundation for the best For business meetings in BANKHOTEL, People’s Republic. Hotel guests and projects in the fi eld of modern architecture. there are 8 conference halls with a total visitors of the exhibition will be able to capacity of 270 people, which will meet learn about the features of each banknote, any requirements for the organization of its author, and where it was printed. The negotiations, seminars, and presentations. peculiarity of the ‘Coins’ project is the Members of business events also have familiarity with the jubilee coins issued by access to a lounge area and an outdoor the National Bank of Ukraine. terrace. BANKHOTEL is one of the few hotels The cozy restaurant SAFE will allow its that has passed star certifi cation and is 8, Lystopadovoho Chynu Str. guests to enjoy a cup of real Lviv coff ee an offi cial fi ve-star hotel. In addition, the Lviv 79000, Ukraine and dishes of Ukrainian and European hotel is the best in the city and one of the +380 (68) 297 50 10 cuisine. There is also the RESERVE wine best in Ukraine according to the ratings of [email protected] bar, where one can taste fi ne wines and Tripadvisor (5\5) and Booking.com (9.6\10). bankhotel.com.ua 83 PROJECTS / NEW SUPPLY In addition to transport accessibility, accessibility, In addition to transport 26/14, Spaska Street 04070, Ukraine Kyiv +380 (67) 230 13 78 will take no longer than 10-15 minutes to will take car. by get there of Business Center S26 the advantage of the infrastructure is the developed where squares, as green district, as well after work. can walk the residents The internal infrastructure includes internal infrastructure The in the business Security and privacy Business Center S26 is located at social interaction of employees, which has of employees, social interaction and culture impact on corporate a positive is an additional development company the tenants. for value and a lobby a cafe, a shop, a restaurant, the which allows oor, fl on the ground the perform business center to perfectly the set by most important task currently a comfortable companies – to create In the the employees. for environment is part of the building, there underground should also be a spacious parking. There for as chargers parking, as well a ground electric cars. professional by provided center are system, and video access control security, surveillance. which is just a 26/14, Spaska Street, Ploshcha Kontraktova from 5-minute walk subway only two are Station. There Metro and it stops to the Independence Square , and the 2 ce spaces . It is a 8-storey . It is a 8-storey 2 . The architectural architectural . The 2 ces and various fl exible fl ces and various The total area of the new B+ class of the new total area The Business Center S26 is a new project in the portfolio of the Intergal-Bud Developer. The object The Intergal-Bud Developer. of the in the portfolio project S26 is a new Business Center central business location in the premium This at Podil. Kyiv, to the historic next is located directly companies. and Ukrainian among international district is popular area for rent is 10,800 m rent for area building where there are offi are there building where of each area The oor. fl rst the fi starting from oor is 500-1,440 m fl formats that are popular nowadays. The The popular nowadays. that are formats and balconies can be turned into terraces communication, and rest, lounge space for project provides free planning, which free provides project one to individually choose the best allows depending on the wishes rent, option for to the well- Thanks of the company. of the space organization thought-out can decisions, there in the architectural offi be traditional Business Center S26 was created created Business Center S26 was to a unique design solution according studio. Studio architectural of Kramall building is inscribed in the existing The urban landscape, taking into account and requirements all the town-planning heritage of the the historical and cultural district. Business Center is 13,300 m BUSINESS CENTER S26 CENTER BUSINESS 84 PROJECTS / NEW SUPPLY of residents andadaptingtotheirneeds. solutions aimedatincreasing thecomfort modern architectural andtechnical constantly, imp Avenue development is toupdate exhale, andreboot duringtheoffi allow onetochangesurroundings, inhale, a garden inside,andmaximum landscaping center Avenue53. Outdoorterraces, characteristics introduced inthebusiness complete safety, andcomfort are essential Environmental friendliness,processability, remotely through theuseofa smartphone. within thebusinesscentercanbemanaged and needsofresidents. Work processes maximum automationwork for comfort ecology ofinternalenvironment, and be seenastheintroduced technologies, operation insummer2020),itcanalready business centerAvenue53 (putinto Business Retreat Avenue. second phaseoftheterritorydevelopment – introduced andimp business centerAvenue53, andwillbe successfully implementedproject, the before becameacounterpartofthe friendliness, spacefl exibility) have long property (smarttechnologies,environmental trend inthefi a eld ofcommercial as Approaches thatare now positioned BUSINESS RETREAT AVENUE of the key componentsoftheirstrategy. and internalprocesses. Companiesfor whichconstantdevelopment andimprovement areone to the formation ofbusinessspacefor companiesthatarerapidlychangingtheirbusinessmodel Harmony, peace,andself-improvement. BusinessRetreatAvenue introduces anew approach The purposeoftheBusinessRetreat In theimplementedproject ofthe rove, andfi roved in the project of the the projectof nd themost ce day. independent buildingswith40,000m Business Retreat Avenue, consistsofthree relax. desire tolive there, act,create, study, and solutions. Itisaplace thatwillarouse a that inspires creativity andfi ndingoptimal of harmony andself-development. Aplace are combined. impeccable service,work, study, andrest where nature andmodernarchitecture, the sideinbusinessandlife. Itisaplace out ofwork routine tolookatyourself from at training orseminar. the lake inthepark,gainnew knowledge in abeautysalon,drinkcoff shop innichestores, work out,replenish the area ofmeditationandsoundhealing, the recreation zone togetamassage,visit to take awalk innature inthepark,goto take over. Itisenoughtoleave theoffi go orfl yanywhere tochangethevibeand area oftheparkisalmost1.5ha). a grand parkwithalake inthecenter(the all buildingsopenontothecentral zone – the implementedfi rst phaseoftheproject, harmonious ensemble.Incombinationwith solutions butatthesametimeforms asingle GLA. The project hasdiff The secondphaseoftheproject, Business Retreat Avenue isacenter Business Retreat Avenue isanescape Just imaginethatyou donotneedto erent architectural ee in a cafe by ce 2

between work andcreative space. solutions for thisproject toform abalance developing architectural andconceptual that have beentaken asabasiswhen improvement are thethree key aspects avenue53.ua [email protected] +380 (67)24277 92 Kyiv 03057, Ukraine 53, Peremohy Ave. Harmony, tranquility, andself- 85

DERENIVSKA KUPIL PROJECTS The history of the Derenivska Kupil Health Resort Complex began in the 16th century. During this time, the resort was part of six states, and each page of history has left its mark on its development. The infrastructure and architecture of the buildings have changed, yet our values remain unchanged – the curative ‘Silver Slatino’ water and clean Transcarpathian air. The modern Derenivska Kupil is an object of unsurpassed beauty and unique service, which continues its development, reaching new horizons.

Infrastructure. The Complex is located Silver Therms SPA-Complex and artists from all over Ukraine and Europe 20 kilometers from Uzhhorod, the regional Irys Wellness Center. One of the main have made eff orts to create our sculptural center of Transcarpathia. Guests are values of the Derenivska Kupil is silicon ensemble. The unique location of the off ered free of charge two-level parking water, which is the basis of the whole Complex is a passage with the ART-DK for 100 cars, equipped with solar panels wellness process. We off er a wide range art space, which combines an art gallery, and an electric car power station. Also, of individual programs for rejuvenation, where famous Transcarpathian artists there is a helipad on its territory. cleansing, and body support. Specialists of present their paintings, and a salon the wellness center pay special attention of local art brands with craft souvenirs. Apartment Hotel and Irys Hotel. The to the problems of the musculoskeletal Apartment Hotel off ers guests of the system and the improvement of all body We invite You to the Derenivska Kupil Complex 44 full-fl edged apartments with systems. In addition, there is an aqua- Health Resort Complex, since this is the a living room, bedroom, equipped kitchen, zone in the Irys Wellness Center. It place for Your ideal vacation. which will be the best option for the whole off ers an indoor pool of 1.2-1.6 m deep family. There is also a modern European and +27°C, a Finnish sauna, and a cozy Irys Hotel with 130 rooms of diff erent relaxation area. The Silver Therms SPA- categories. The interior combines the area with a seasonal outdoor pool and aesthetics of laconic details and restrained semi-outdoor with thermal water (up to elegance. +34°C) is available throughout the year. There are also excellent conditions for Restaurants of the Derenivska Kupil. The active leisure and daily sports. The Health Irys Restaurant is a spacious and bright Resort Complex has a modern fi tness establishment with a delicate, democratic center, tennis courts, volleyball court, and interior style. The idea of cuisine is to mini-golf. reinterpret Transcarpathian culinary traditions. The Salamandra Restaurant Symbiosis of nature and art. The off ers gourmet cuisine and local recipes Derenivska Kupil is a unique combination 150, Nyzhnie Solotvyno village in the European variation. In addition, of nature and art, because in our territory Uzhhorod district pleasant emotions are added by exquisite there is a dendropark with a total area Transcarpathian region wine, selected on the recommendations of of 14.5 ha. Its collection has more than For reservation: leading wine critics. The peculiarity of the 5,000 varieties of trees and shrubs, +380 (312) 42 80 60 gastronomic service is organic products, including unique and diverse collections +380 (50) 400 01 88 grown on our own farms. of trees, shrubs, and vines. The best derenivska-kupil.ua 86 EDЕM RЕSORT MEDICAL & SPA Is there Paradise on Earth? Yes, there is! And it is not far away from old Lviv. When you get here, you can relax, forget the noise of the big city, and enjoy every minute of being here. Your watch stops, and you become immersed

PROJECTS in an atmosphere of peace and healing relaxation for your body and soul.

Edem Resort Medical & SPA is a complex A stay here combines medical programs, surrounded by a forest and a lake. It is relaxation, and spiritual cleansing. a fi ve-star hotel with fi ve haute cuisine Edem Resort Medical & SPA is among restaurants, three event halls, three the nine best Spa & Wellness resorts conference halls, a medical centre for of the world listed by the Total Escape health and convalescence, a spa, an art international edition. It has also won the space, the landscape sculpture PARK3020, Best Hotel in Ukraine award at the Chance the fi rst golf club in Western Ukraine, a Travel Awards. white-sand beach, vineyards, fruit and In 2018, DeVine Restaurant got the vegetable gardens, stables, and hunting two-glasses rating from the American grounds. magazine Wine Spectator. Only six The unique medical centre focused on restaurants in Ukraine had the honour revitalisation and health is the true pride of such a rating. In December 2018, of Edem Resort Medical & SPA. It provides Terrace Restaurant received the title such services as diagnostics, balneology, of the Best Country Restaurant from dietology, dermatology, hydrotherapy, the SALT National Restaurant Awards. water and herbal medicine, aesthetic In January 2019, Edem Resort Medical medicine, instrumental cosmetology, and & SPA was named the Best Medical Hotel more. at the International Hospitality Awards. Each guest is off ered an individually And at the end of 2019, the International customised program. For example, a 7- or Hospitality Awards nominated the 10-day Detox program, a 3-day Anti-Stress complex as the Best Wedding Hotel. course, or a 3-day Re-Energy program. The Chateau Edem vineyards located The medical programs at Edem Resort on the territory of the complex are some of Medical & SPA have two main goals: to the largest in Western Ukraine. The wines Strilky village improve your mental state (soul, emotions) have received several prestigious awards, Peremyshliany district and invest in your physical health and including those at the Galician Vine Grape Lviv region, Ukraine longevity. This is the holistic approach, and Wine Festival in 2019, the Uwines +380 (67) 314 65 12 in which the health of the human being Awards 2019, and the Ukraine Wine [email protected] is seen as a symbiosis of body and soul. & Spirits Awards 2020. www.edemresort.com 87

FRANKLIN SUPPLY / PROJECTS NEW The concept business center FRANKLIN will start operating in the business area of Dnipro in 2021. The project will be completed in the architectural style – Federal, which was very popular at the proper time in the United States and was used for government buildings.

The project has 3,668 m2 GBA and 2,880 m2 GLA. There are two fl oors in the business center and a basement that can be used as a warehouse. The implementation of FRANKLIN offi ce area is planned in the open space format with the opportunity of division into separate offi ces. The ground fl oor has separate offi ces from 48 m2 to 153 m2, the fi rst and second fl oors feature open space areas from 329 m2 to 872 m2. There is a land parcel for 46 parking slots on the territory of the BC with convenient and commissioning are scheduled for entrance by own car. Q4 2021. BC has a competitive location: public Payback period – 10 years. transport stop (200 meters), 400 meters Sale price – US$1,000/m2. to Yavornytskoho Avenue. The railway Rental price – UAH250/m2/month (VAT station is about 7-10 minutes by car, and excluding). 16, Stoliarova Str. the airport is 25-30 minutes from BC. Dnipro 49000, Ukraine Project status: total building +380 (96) 101 08 10 renovation. Completion of fi t-out works franklin.dp.ua

CITADEL-2 Citadel-2 is a B-class business center located in the center of Dnipro. This offi ce project, built in a classic style, fi ts straight into the architecture of the business district of the city.

Citadel-2 has 5,718 m2 GBA. The business center operates four fl oors of eff ective business area: on the ground level, there are commercial premises from 200 m² to 519 m2, and from the fi rst to the fourth fl oors, there are premises from 53 m2. Interfl oor connection is provided by three Otis elevators. The business center has a café for business meetings. There is a developed infrastructure near Citadel-2 – public transport stop (50 meters), Nova Poshta alongside, supermarkets, banks, restaurants, and is equipped with video monitoring and a shopping and entertainment center. access checking systems, twenty-four- The main street of the city, Yavornytskoho hour guarding. Avenue, is 700 meters away. The business center Citadel-2 enjoys The project provides for 36 parking slots high demand among tenants and has on the business center territory, which is a low vacancy rate. 12, Sviatoslava Horobroho Str. located on a land parcel of 0.37 ha. Revenue-generating capacity – Dnipro 49000, Ukraine The business center performed face- up to 15% per annum. +380 (96) 101 08 10 lift and renovation in 2017. The building Cost – US$900/m2. citadel2.jip.com.ua 88 PROJECTS / NEW SUPPLY that combinesthefeatures of3-4starhotels,hostels,andaparthotels. In February 2020inKyiv, DEOLPartners launchedtheuniquetravellers’ hubGlobeRunnerHotel&Hostel provides today’s adventurers with a variety aesthetics, andurban vibe,GlobeRunner hostels, andaparthotels. features of3-4starhotels,contemporary is atravellers’ hubthat combinesthebest breed ofhospitalitytoKyiv & community hosteltrend and pioneer, which embraces thelifestyle RunnerHotel&Hostel Globe collection). Eastern Europe, partofDesignHotels™ (the first designhotelinUkraine and aparthotels) and11Mirrors DesignHotel first chainoffullyfurnishedandserviced Senator Hotels andApartments (Ukraine’s successful nichebrands, suchas decades ofexperience. market knowledge andmore thantwo based onourin-depthlocalandglobal landowners withstraightforward solutions investors, co-development partners, and focus onthehotelsegment.We provide management company withastrong estate investment, development, and DEOL Partners isUkraine’s leadingreal GLOBE RUNNERHOTEL &HOSTEL With anintelligentcharacter, eclectic On 1February 2020,we launched Our diverse portfolio includes . Globe Runner . Globe Runner brings a new – a brave brave a – showed already faced allthechallengesof2020and return oninvestment soon. GlobeRunner budgets. The project willyieldapositive development solutionsdidnotrequire big memories, whichwilllastalifetime. and socialisewithoneanother, making get-together spacewhere guests interact merely ‘anaccommodationoption’,itisa Cathedrals. The hubisnot and St Sophia GoldenGate,StVolodymyr Opera House, within aneasywalking distanceof communal kitchen,andcafé. like lobby, open-spaceloungearea, fl oor isequippedwithanamphitheatre- pieces, andsmartfurnishings.The ground with amoderndécor, conceptualart kind andfeatures vintagedetailingmixed elements. boasts well-preserved architectural building datingbackto1899,thehub The property isoutstandingandvibrant. guestrooms, andfamily apartments. of accommodationoptions–dorms,private Our creative approach and Globe Runnerhasatoplocation Each accommodationunitisoneofits Nestled ina4-storey stand-alone impressive performanceresults . partners. with investors andco-development Ukrainian citiesandseekcooperation Senator HotelsandApartmentsinother the GlobeRunnert • • • • • and Managing Partner atDEOLPartners Ruslan Oleksenko, Founder www.globerunner.house www.deol-partners.com +380 (44)20077 00 Kyiv 01030,Ukraine 4, Lypynskoho Str., offi At DEOLPartners, we plantoopen Acquiring theSafeT on Hostelworld. Scoring 9.7–asuperbmark mark –onHotels.com. Scoring 10outof–anexceptional from Booking.com. Garnering theT best Commercial RealEstateProject. Winning thenationalCPAwards asthe Our achievements include: raveller Revie ravellers' hubsand ravels ce 16 stamp. w Award 89

GULLIVER PROJECTS Gulliver mixed-use complex (MUC) is the project that features the unique location on the retail and offi ce real estate market in Kyiv. It is located both in the historical and business district of the capital, at the intersection of major transport arteries, in the vicinity of the key metro stations and public transport stops.

Multifunctionality is one of the main i.e. all the engineering is managed by using advantages of Gulliver. As the world a single console. The business center has the business practice shows, having everything most advanced heating, ventilation, and air- close and all together – work, entertainment, conditioning systems. Fire safety is secured and shopping – is very eff ective. There is no by the sprinkler system by Mercor (Poland) Eldorado store of home appliances and need to spend half a day in traffi c jams, and Siron (Netherlands) fi rms, and the electronics, and JYSK home goods store are waste time, and get nervous because of the uninterrupted power supply is guaranteed located on the ground fl oor of Gulliver. tough traffi c in the capital; just a few steps – by a complex’s own substation and several The extensive infrastructure makes and one can get where he needs to be: in an emergency diesel generators. Gulliver not just a business center with offi ce, cinema, or store. Approximately 60 Ukrainian and a shopping and entertainment component, The total area of the complex international companies, such as Coca-Cola, but a space for life and effi cient use of is 157,400 m2. It includes an A-class business Colin's, Grammarly, Yves Rocher, Bacardi- time, where all details have been carefully center, which consists of two towers, and Martini Ukraine, Playtech, Ciklum, Inditex, elaborated. And these are the renovated a 10-storey shopping and entertainment and others located their offi ces in the parking with electric car charging station, center. Gulliver MUC is one of the highest business center. Over 10,000 m2 in Gulliver beauty salons, modern Gulliver Bowling, buildings in the capital. The height of the are occupied by the best coworkings, namely 6-screen Oscar cinema, and Sky Fitness 33-storey tower ‘A’ of the business center Creative Quarter, Creative State, and Regus. center with unique panoramic views is 141 meters. The shopping and entertainment and a 25-meter pool, a visa service center, The scale, comfort, modern design, center Gulliver has over 150 stores of more than 20 eateries with various cuisines – functionality, and unique set of services various profi les: fashion, classic, and youth from traditional Ukrainian to exquisite Italian make Gulliver an ideal choice for the best clothing and footwear, sports goods, and Japanese. companies in the capital. children goods, home and interior items, The availability of this infrastructure The business center Gulliver meets all gifts and accessories. These are the brands provides considerable savings of time of the international requirements for A-class of the Spanish Inditex group (ZARA HOME, since most issues can be settled within the offi ce centers with its high-quality transport Massimo Dutti, Bershka, Pull & Bear, territory of this mixed-use complex. junction, good and convenient location, Stradivarius, Oysho, Uterqüe), Polish LPP extensive infrastructure, comfortable (Mohito, Reserved, Cropp, House), as well parking, innovative technical solutions, high as Zadig & Voltaire, Maje, Sandro, Lacoste, level of safety and energy effi ciency, and Tommy Hilfi ger, Roy Robson, Naf Naf, high-quality services. The coordinated work Arena, ALL STARS, PUMA, Adidas, Falke, 1A, Sportyvna Square of all of the complex’s life support systems Hanro, Polo Ralph Lauren, BROCARD, Kilian, Kyiv 01001, Ukraine is secured by an intelligent automated Jo Malore. +380 (44) 364 84 43 control system and building management, Silpo supermarket in a new format, gullivercenter.com 90 HORIZON OFFICE TOWERS Horizon Offi ce Towers is the fi rst premium class business center in Kyiv that keeps its leading position in the commercial real estate market for many years already. PROJECTS

Horizon Offi ce Towers is a unique facility facilities of the business center by all tenants consisting of several buildings with a without exception, regardless of whether total area of about 17,000 m2. In close they are located in the main building of the vicinity to the business center, there is complex or in one of the extensions. a parking area with 52 parking spaces, Horizon Offi ce Towers is equipped as well as a heated garage on several with 5 OTIS elevators, which ensure levels for 50 cars in total. The complex is minimum waiting time, the most effi cient located in the governmental quarter of distribution of tenants, their visitors, and Kyiv, which is also a cultural and historical staff fl ows. center of the capital and the center of All premises in the business center business activity – Pechersk district, on have quality fi t-out of the European level, 42-44, Shovkovychna Street. Offi ce of but some of them diff er by higher quality the President of Ukraine, Parliament, and fi t-out with premium class decoration Cabinet of Ministers are located near the materials. business center. The management and maintenance The complex consists of the main of Horizon Offi ce Towers are provided building and two adjoining annexes: by a professional company that has a • main building – 17 offi ce fl oors; reputation as one of the best companies on • fi rst extension – 6 offi ce fl oors and an the commercial real estate management underground parking; market of Kyiv. • second extension – a two-level offi ce Safety and order in Horizon Offi ce unit and a three-storey parking. Towers are provided 24/7 by a professional All buildings of the Horizon Offi ce security company. Towers complex have autonomous utility Horizon Offi ce Towers stands out systems and have access through the lobby by its uniqueness and exclusiveness in of the main building (the main entrance to terms of internal organization, extended the business center). Alternatively, each infrastructure, and concentration of extension has its own entrance. tenants, who have successfully approved 42-44, Shovkovychna Str. The well-designed infrastructure of themselves on both the international and Kyiv 01004, Ukraine the complex makes it possible to use the Ukrainian markets. +38 (096) 349 88 08 91

IBIS STYLES LVIV CENTER PROJECTS ibis Styles Lviv Center is a hotel of the leading in Europe international hotel operator Accor and the fi rst representative of the ibis Styles brand in Ukraine. A modern 7-storey building is located in the center of Lviv, at 3, Shukhevycha Street, on the territory included in the UNESCO World Heritage List.

ibis Styles Lviv Center is a bright, modern, and stylish hotel with perfect combination of Ukrainian national touch in small details and functional comfort. The hotel started operating in August 2015 that made it the second representative of the Accor group in Ukraine and fi rst – in Lviv. The room capacity of the hotel provides 77 rooms on 7 fl oors and includes Standard and Premium categories. ibis Styles Lviv Center is ideally equipped to exceed expectations of individual leisure travelers and business tourists, as well as groups. On the ground fl oor of the building, there is a spacious lobby A free ALL – Accor Live Limetless – with comfortable sitting area, a business lifestyle loyalty programme that goes corner, a kids play corner, and an Italian beyond hotels and off ers is available for cuisine restaurant of the famous Ukrainian loyal travelers. The Program Members are chain. welcome to take advantage of exclusive The room rate includes all-you-can- promotions and discounts, as well as eat buff et breakfast and unlimited Wi-Fi. special services including free early check- Bedding quality is proved by world-known in and late check-out, special off ers for brand “Sweet bed” by ibis Styles designed accommodation and services, earning exclusively for the brand and guarantees reward points and using these points as 3, Shukhevycha Str. comfort and high sleep quality. Additional payment for stay and services in more Lviv 79005, Ukraine services are available for the comfort of than 3,960 properties of the chain, and Tel.: +380 (32) 254 67 67 guests such as transfer, organization of many other pleasant bonuses. Fax: +380 (32) 254 67 77 excursion tours, fl ight tickets booking, [email protected] courier services, etc. Also the ironing room ibis Styles Lviv Center is your stylish all.accor.com is at the disposal of guests. hotel in the heart of Lviv. ibis.com/9709 92 PROJECTS / NEW SUPPLY and stone standsoutasawork ofartandevokes asensationofcomfort andprestige. concepts, itinspirestoahigh LUWR isastate-of-the-artA-classbusinesscenterinKyiv. Duetoarchitectural,technical,anddesign really comfortable. with otheradvantages make working here well-developed infrastructure together like. Openplansofinternalspacesand lessees todecidewhattheiroffi core thatmakes itpossiblefor the & car-park tosectionA. center, aswell asaseparate liftfrom the entrances andexitsfrom thebusiness privacy, there are additionalisolated To maintainconfi dentiality andclients’ with itsown front-desk andsecurity. sections hasaseparate entrance space equipped withEVchargers. Eachofthe slots. Bothcar-parks are guarded 24/7and park for visitors oftheBCfor 65parking In additiontothis,there isanoutsidecar- car-park thatcanaccommodate80cars. contains astate-of-the-artunderground section anda16-storytower, andalso gives acreative drive towork effi That way thebusinesscenterinspires and breathtaking all-round views ofKyiv. almost all-glassfaçade thatproduces station ofLukianivska,isemphasized with arteries ofthecityandunderground immediate vicinityofthemaintraffi theUkrainian capital,inthe area of center (BC)LUWR inthedowntown An advantageous locationofthebusiness LUWR All thepremises are rented outshell The buildingconsistsofa6-storymain ce will look ciently. wave of of wave c building: theBCisequipped within-house by themaximumsafety andsecurityofthe time. Ahighlevel ofcomfort isensured distribution systemcutstheirwaiting seconds pereachstory, whilethetraffi for ahighrate oftransportation –two capacityupto1,000kg provide a loading 8 high-speedliftsThyssenKrupp with engineering solutions.To nameafew, results from awholerange ofdeliberate offi up theairtomake themicroclimate in chiller/fan coilsunitsconditionandwarm room withconditionedfresh air. While embedded fi ltering systemprovide each At thesametime,air-shafts withan temperature ismaintainedintheoffi in any seasonoftheyear, theset-point are switched onwhenneeded.Asaresult, located ontheroof ofthebuilding,which is fitted withcost-eff business centerdesignedfor 2.48MW heating. The in-houseboilerstationofthe time oftheyear withnoextra charge for comfort temperature inthepremises any do notletthewarmth out.This maintains insulated andventilated, whilewindows saving façades ofthebuildingare thermo- the offi advanced engineeringsystemsthatmake ces comfortable. creativity andachievements. The buildingmaterializedinglass The prestige value ofLUWR BC The complexismanagedwith ce spacescomfortable. Energy- ective boilers Buderus ces. c the entire offi project not only for Kyiv butfor an iconic premises –allthesemake LUWR BC as comfortas well andaesthetics inoffi architectural andtechnicalsolutions, inside thebuildingandwithinitsterritory. from asecuritycompany ensure security security systems,andCCTVs.Professionals access controlsystem,fi passagecontrol system,aswell asan a spreading. to prevent combustionoccurrence andfire are fi re protected. Besteff structures andpassagesofutilityservices smoke detectionsystemsinstalled;steel alarm andsuppression systems,and All thepremises have fi re detection, of essentialservicesthebuilding. an accesscontrol systemtostore data servers, astructured cablingsystem,and luwr.com.ua +380 (68)4909016 Kyiv 02000,Ukraine 2/10, Yuriia IllienkaStr. The uniquelocation,cutting-edge Besides, theBCisequippedwith ce spacemarket aswell. orts are applied re prevention ce 93 PROJECTS / NEW SUPPLY 8B, Moskovska Str. Str. 8B, Moskovska 01010, Ukraine Kyiv +380 (67) 230 13 78

2 , and the properly , and the properly 2 in the Pecherskyi in the Pecherskyi ces is suitable for ces is suitable for 2 ciently as possible ce as effi ces in M8 Business Center areces The company which plans to open an company The Flexible planning solutions of 135 m Offi ce in M8 Business Center will receive ce in M8 Business Center will receive district of Kyiv. offi business exible and multifunctional a fl the right distribution space that provides modern engineering, and ows, of human fl elevators. spacious premium four allow one to use the usable fl oor area in oor area one to use the usable fl allow offi the new social and at the same time provide of area people. The distance between oor is 2,280 m fl a typical planned division of offi of space organization. format any M8 Business Center has an inner area, M8 Business Center has an inner area, parking and an outdoor an underground which means one 145 cars, parking for parking lot per 67 m organized so that employees can work so that employees organized pleasant lunch breaks, arrange comfortably, also project and hold business meetings. The ower a bank, a fl a cafe, includes a restaurant, points for charging are boutique, and there business in the parking. The electric cars center is equipped with the latest access systems. and video surveillance control agship business center that is a part of the commercial real estate part of the commercial center that is a agship business for rent. Also, rent. for 2 walk away. ce building was designed building was ce . There are fi ve fl oors in the oors fl ve fi are . There 2 The total area of the project is of the project total area The The best restaurants of the city, sports of the city, best restaurants The 18,000 m This class A offi This and implemented taking into account and needs of the technical requirements modern business. M8 Business Center has to Thanks been put into operation. already location in the central the advantageous one of business district, it is considered new and comfortable the most prestigious station metro Arsenalna in Kyiv. projects the distance to is just 5 minutes to walk, stations is about and Pecherska Klovska is of the project address 1.5 km. The there here, From Street. 8B, Moskovska is quick car access to the city’s main as to as well direction, in any highways quarter. the government clubs, some of them with a swimming beauty salons, bank pool, premium notaries, and other service branches, of the the closest neighbours are facilities the creative Moreover, business center. public space on the territory of the former and a park plant with restaurants Arsenal is just a 3-5-minute М8 BUSINESS СENTER BUSINESS М8 building and 10,000 m M8 Business Center is a fl M8 Business in Ukraine, Intergal-Bud. one of the largest developers of portfolio 94 PROJECTS / NEW SUPPLY which everyone willfi nd theirplace.The RENOME Comfort off of the city. its glasssurfaces refl ect thepanorama stands outamongtheoffi of Space4,whichfeatures openterraces, Archimatika. The aspirational architecture by oneofKyiv’s best architectural bureaus, any partofthecity. to getthebusinesscenterby carfrom jams, thus,itwilltake only10minutes of Rivneandbypass roads free oftraffi takes several routes through thecenter employees for tenantcompanies.Space4 is closetotheplaceoflivingpotential commercial spaces,andontheother, it side, willprovide traffi include residential buildings.This, onone 5.5-hectare development thatwill the project ispartofacomprehensive in themostdenselypopulatedarea, streets. The businesscenterislocated of Lionokombinativska andGagarina entrance tothecity, attheintersection face ofRivne,asitislocatedatthe offi only project inthecitytooff international BREEAMstandard andthe Rivne tobecertifi ed according tothe Space4 isthefi rst business center in operation intheautumnof2021.Leaseapplicationsarebeingcollected. builds aninnovation businesscenterwithasportscomplex inRivne.Itwillbeputinto The development company RENOMEComfort, whichisapartofthegroup RENOME, SPACE4 ces. Offi Architecture. Location. ces. For tenants,thedeveloper Space4isthenew The project isdesigned c ofvisitors toits ers fl ex space in ce buildings, and er Grade A c in eachoftheoffi arrangement ofkitchensandwashrooms zones’ are provided for the ‘wet 5,000 m offi and headoffi up to1,848 m company, Spectrum Service. be managedby itsown management business centerstarts itsoperations, it will areas; electriccharging station.When the speed elevators andinclusive common alarm andfi re control systems;four high- control andvideosurveillance system,fi re saving aluminumwindows Aluprof; access heating withheatrecuperation; energy- ventilation systemandmixedradiator/air building managementsystem;centralized engineering systemsandautomated building are: automatedoperation of energy effi ensure environmental friendliness, Among thetechnicalsolutionsthat will bea24-hourconcierge service. provided. Atthetenants’disposal,there areas, carandbicycleparkingswillbealso spaces willwork inSpace4;recreation swimming pools,afood court,andretail (VIP-format) withaSPA area andthree business center;thefi tness clubSport Life will bearranged intheglassatriumof ce area ofthebusinesscenteroff Infrastructure. Technical solutions andservices. 2 . Itprovides openspaceoffi ciency, andergonomics of the 2 m ces upto120 , designedfor IT companies, ces. The presentational area 2 . Also, ces ers space4.renome.ua [email protected] 95

TORONTO-KYIV PROJECTS The Toronto-Kyiv Complex is strategically located in the heart of the historical and business district of the capital and consists of class A offi ce premises, retail and event spaces, restaurant and boutique areas and the hotel with the brand Holiday Inn Kyiv managed by the InterContinental Hotels Group.

PJSC Toronto-Kyiv is the developer and Kyiv is a part of the IHG Green Engage For the Canada Ukraine Business co-owner of the Toronto-Kyiv Complex. system – a special program, which Forum, which was held in Toronto in 2016, The company specializes in: leasing and was initiated by the InterContinental the Toronto-Kyiv Complex was chosen by maintenance of premises, development, Hotels Group to reduce the negative the Canadian Government one of eight property and facility management, event environmental impact of hotels and is (8) companies, as reputable examples management, strategic real estate advisory based on the world-class LEED-principles. of the successful trade and economic and hotel development. The Complex is The Toronto-Kyiv Complex has already cooperation between two countries. operated by the management company – become the place for various prestigious For two years running the Toronto- TK Property Management LTD. events and happenings, such as: ELLE Kyiv Complex with its Team received The Complex has become home Style Awards or fashion shows during the from Vitali Klitschko, the Mayor of Kyiv, for numerous reputable International Ukrainian Fashion Week, presentations Kyiv Friends Awards – the special award corporations and Ukrainian companies. of a new auto model by Lexus or Rolls for supporting City’s development and Moreover, Toronto-Kyiv has one of the Royce, the brand show and street culture investment attractiveness on the global most beautiful courtyards in Kyiv with an festival don’t Take Fake, the International stage. The award was presented during the incredible view to the St. Nicolas Catholic Exhibition of Modern Art Kyiv Art Fair or main and largest international real estate Cathedral. In 2019, the St. Nicholas diplomatic receptions like the Canada event – MIPIM 2018 and MIPIM 2019. Cathedral received the necessary night Day Celebration. illumination thanks to four patron The company permanently maintains companies MacPaw, Ring Ukraine, relations with the foreign partners SD Capital and Toronto-Kyiv. Modern by welcoming and accompanying the lighting system was developed and diplomatic missions of Canada on implemented by Ukrainian lighting design working visits to Ukraine, where the key company – Expolight. The St. Nicolas issue is the bilateral Political and Social Cathedral’s illumination project received partnership between the two countries. the prestigious award of one of the top The Toronto-Kyiv Complex together professional lighting design contests with CUCC and WNISEF were copartners in 100, Velyka Vasylkivska Str. LIT Lighting Design Awards 2019 in organization the reception of the Canadian Kyiv 03150, Ukraine Los Angeles, USA. delegation and the visit of Canadian Prime Tel.: +380 (44) 495 85 33 The Holiday Inn Kyiv hotel is a part of Minister Justin Trudeau to Kyiv in July 2016, Fax: +380 (44) 495 85 38 the Toronto-Kyiv Complex and, in general, during which was signed the Canada – [email protected] is the first Holiday Inn in Ukraine. Ukraine Free Trade Agreement and a number www.facebook.com/torontokyiv The hotel off ers 208 rooms. Holiday Inn of additional business projects. www.instagram.com/torontokyiv