Kyivmiskbud’s long-term construction projects: a phased unfreezing of projects is being prepared in the summer
2 April 2024 16:17
Vasyl Oliynyk, President of the Kyivmiskbud holding company, said that the company had analysed the projects, and if the Kyiv City Council approves the mechanisms and sources of funding, starting in the third quarter of 2024, their gradual unfreezing is possible. This was reported by Interfax-Ukraine, according to Komersant ukrainskyi 
“During this month and a half, we managed to inspect all construction addresses – we have 25 of them, with a total of more than 120 buildings, analyse the state of affairs in the company and, together with the team, determine the directions we plan to move in order to stabilise Kyivmiskbud. Physical measurements of all the scope of work have been carried out, which enables us to plan. We are facing challenges, among which the priority is to find sources of funding,”
– said Mr Oliynyk.
He added that each month of downtime costs the company about UAH 10 million (stabilisation of facilities, taxes, etc.).
According to Oliynyk, if the necessary funding is accumulated, the launch of all facilities, starting with five, is possible in the summer of 2024.
The president of Kyivmiskbud noted that the actual stabilisation plan for Kyivmiskbud will depend on the amount of funds raised.
He clarified that several options are being considered. In particular, cooperation with the utility company Zhytlo-Invest, which can purchase a certain number of apartments under the rent-to-own programme. According to the analysis, the existing volume of apartments in the completed facilities allows to raise about UAH 500 million.
In addition, it is proposed to transfer several completed and commissioned kindergartens to the city. According to Oliynyk, since they were built earlier, these buildings need to be adapted to meet increased safety requirements. If the city agrees to buy out these kindergartens after the refurbishment of the shelters, it will give Kyivmiskbud another UAH 200-300 million to complete the facilities.
At the same time, this amount (UAH 700-800 million) will only be enough to restart several sites. To fully unfreeze the facilities, about UAH 2 billion a year is needed, and in total, as previously announced, about UAH 4 billion in 2024-2025.
“We are in talks with state-owned banks Ukrgasbank and Sens to provide loans under state guarantees and collateral. The key may be to increase the authorised capital of Kyivmiskbud if the Kyiv City Council members support this issue, which would be a real help now.”
– mr Oliynyk outlined the real mechanisms for resuming the company’s operations.
Kyivmiskbud’s long-term construction projects
“Kyivmiskbud is one of the country’s largest developers. Legally, the company is 80% owned by the community of Kyiv. The holding currently controls about a third of the primary real estate market in Kyiv, which became possible after the transfer of Kyivmiskbud’s unfinished properties to Maxim Mykytas’ Ukrbud Development in 2019.
The situation with Kyivmiskbud is very difficult. A lot of people bought housing from them because they knew that this company belonged to Kyiv, hoping that no one would cheat them out of their money and they would get their housing, but unfortunately, this did not happen.
The company has about 20,000 investors who are expressing serious concerns, as the developer has been inactive for a long time.
The company has not been working on the sites since the autumn of 2022. Construction stopped when significant power outages began to occur, the company explained.
Since the start of the full-scale invasion, Kyivmiskbud has focused on completing ten projects with a high degree of readiness. In 2022, the company commissioned three residential complexes of 100,000 sq m and four car parks with 617 spaces.
The media reported that construction has now resumed at 5 high -completion residential complexes. At the remaining sites, construction is still suspended due to a lack of funds caused by almost no sales and large debts of investors under instalment payment agreements. The total debt of investors currently stands at UAH 800 million.
The company itself confirms that it does not have enough funds to complete the residential complex. Earlier, Kyivmiskbud officials said they were asking for UAH 1 billion from the city budget to resume construction at their sites.
Investors who have invested in the construction of apartments are now very worried about the scandal around Kyivmiskbud, and people fear that the houses will not be completed and they will be left homeless.
Read also:
- Oliynyk will lead Kyivmiskbud out of the crisis: what is known about the new CEO
- Scandals around Kyivmiskbud
