The State Property Fund sold a dilapidated building for UAH 1 million, which it valued at one hryvnia
22 February 2025 04:14
The State Property Fund held an auction for the sale of a non-residential building in Znamianka, Kirovohrad region, which was put up for auction with a starting price of UAH 1. The winner of the auction offered UAH 999,999 for the property. This is reported by "Komersant Ukrainian" with reference to the press service of the SPF.
There were 12 bidders for the building. The buyer will additionally have to pay VAT of almost UAH 200,000, so the total economic effect of the auction may be about UAH 1.2 million. After full payment of the lot, including VAT, the new owner will receive the property, which is located near a bank branch, the T1211 highway and a local landmark, making the building promising for investors.
The symbolic price of UAH 1 is a mechanism established by law for the period of martial law to determine the starting price of objects with no or zero book value. Such a starting price allows for an effective start to the privatization process in the current environment, the SPF explains.
In August last year, the State Property Fund announced the first two experimental packages of lots with a starting price of UAH 1. The first package included four properties in Odesa and Zhytomyr regions. In the second package, in addition to real estate, the SPF included a Volkswagen Phaeton car.
In mid-September, the SPF held an auction for the first asset with a starting price of UAH 1. There were 11 bidders for the non-residential premises – a former radio reception center for air traffic control in Odesa. During the auction, the price of the property rose to the winning price of UAH 1.5 million.
