DebtX, acting on behalf of a major Ukranian bank, has announced its intention to sell a €80.6m ($100m) commercial real estate portfolio. The portfolio includes two office buildings in central Kiev and a large regional shopping centre.
The Kiev office buildings are Class-A total 19,000 m² (204,000 ft²). The shopping centre, which is operational, is 65,000m² (700,000 ft²) and includes a partially constructed expansion. The balance of the portfolio consists of residential, land, office, and industrial properties located primarily in Kiev and Dnipro.
Indicative bids are due May 10 and final bids are due May 31. The May commercial real estate transaction will be followed by additional sales for the Ukrainian Deposit Guarantee Fund in 2018.
“The sale of this €80.6m ($100m) portfolio is an important milestone for Ukraine,” said DebtX CEO, Kingsley Greenland. “For the first time, international investors are being offered substantial, cash-flowing commercial real estate in a transparent sale process. We expect strong interest in these assets.”
DebtX has been operating in Ukraine since 2016, with the goal of bringing new capital into the market to buy assets from banks and government agencies. DebtX, which conducted its first loan sale in Ukraine in 2017, estimates there are at least €16.1bn (US$20bn) of distressed loans in the country.
“The initial market feedback is that investors like the portfolio as an entry into Ukraine,” said Gifford West, Managing Director for Europe. “The portfolio is appealing due to the large assets, clear legal title, and the sellers’ commitment to a transparent process. Seasoned European distressed investors are concerned that Spain and Italy are becoming overpriced. Ukraine, while clearly having significant risks, has strong upside potential.”