Our projects

An annual growth rate of over 20% in real incomes and domestic demand during the last 3-4 years made commercial real estate very attractive for investment. This sector is characterized by a large deficit of available areas caused by high demand and a slowly growing supply. In 2006 five trade centers were opened in Kyiv, and in 2007 just three. All attention of the developers was focused on the regional markets. A lack of GLA in the regions caused an increase of rates by 30-100%, depending on the success of the project. It is expected that such a situation will continue to exist until 2009, if all the announced projects are completed.

Favorable market conditions and positive expectations draw our attention to this market, hence at the moment real estate takes up 42% of the fund’s assets: 14 million UAH is invested into a development project that involves the construction and operation of a trade & entertainment center in Ivano-Frankivsk and there are plans to increase the amount of investment to 17 million UAH by the end of the first quarter of 2008.

TEC “Stanislav” is a multifunctional complex for trade and entertainment. It consists of two parts that can each be run separately. The building’s facade agrees with and complements the XIX century architectural ensemble of the city.

The total cost of construction is 106 million UAH (~21 million USD) and the center will be complete in 3 years (IV Q. 2006 - III Q. 2009). In accordance with the current financial models 70.1 million UAH will be invested through equity capital (equity shares issued by the OJSC “Energetychni Tehnologii” and investors’ funds), while the remainder of the required funds will be obtained through credit mechanisms.

The main cash flow sources of TEC “Stanislav”, once completed, will be:

- rental payments

- income from the operation of the ice rink and bowling

The average rental fee per 1 m² is 162.91 UAH (32.26 USD) per month and it will be indexed with regards to the annual inflation rates.

Total area	20 043.00 m² (with parking)
GLA	8 950.83 m²
Entertainment area	3 801.44 m²
Parking places	80
Average rent rate	USD 32.26 per m² (UAH 162.91 per m²) + inflation index
Construction cost	USD 21 mil. (UAH 106 mil.)
Start of construction	IV Q. 2006
Expected end of construction	III Q. 2009
Annual income for the period 2010-2011 (including operational income from bowling and ice rink)	USD 5.0 - 5.6 mil.
Expected annual returns for primary developer, taking into account eventual sale	30-40%
Expected sale price in 2011-12	USD 56 – 58 mil. (UAH 284 – 294 mil.)

TEC “Stanislav” is an investment project and thus can be sold at any stage of its life cycle.

Estimated value in 2012 is 56 – 58 million USD (284-294 million UAH) based on the average rental fee of $32 per m², GLA, and income from the entertainment zone. In 2008 the market price of 1 m² is estimated, on the basis of existing offers, to be at 2500 – 2800 USD.

An important additional factor contributing to the center’s growth in value will be the increase in land prices regionally, including the Ivano-Frankivsk region.

Concept by: “Ukrainian Trade Guild”.

General contractor: "Comfortbud".

Subcontractor: "Comfort-Service".