For Two Years Alfa Bank Sold Real Estate Property Worth $230 Million
19 February 2019
‘Since the beginning of 2017, Alfa-Bank (Kyiv) has closed deals to sell a portfolio of collateral real estate totaling $ 230 million’, reports Interfax-Ukraine news agency.
By the end of 2018, the bank expects completion of transactions for another $ 10 million to be completed. Thus, according to forecasts, by the end of the year, the total amount will be $ 240 million.
‘In 2017, at the international exhibition MIPIM, we presented our property package – seven properties in Ukraine. 1.5 years have passed, now we do not have any of these objects. All seven objects were sold, out of $ 230 million, they (seven objects) were sold for $ 160 million,’ said Irina Skorokhodova, vice-president of Alfa-Bank.
Before selling of some objects, the bank carried out a major reconstruction in order to attract a quality tenant. One of the warehouse complexes was ‘almost empty’; after the reconstruction, 70% of the space was leased by the postal operator Nova Poshta. This allowed the bank to attract the interest of several investors at once and, as a result, to sell the object at a more attractive price.
In October 2018, UCPIH Ltd., a member of the Dragon Capital group of companies, completed the acquisition of the Horizon Park business center in Kyiv (69,000 sq.m) with Ukrsotsbank (Alfa-Bank and Ukrsotsbank are in the process of merging). In summer, Dragon Capital closed the acquisition of Sky Park shopping center (30,000 sq. M) in Vinnitsa from Alfa Bank. In addition, Alfa-Bank sold Dragon Capital warehouses at 8 and 68 Obyizna Rd in Brovary, Kyiv Region.