Investors of Kyivmiskbud announce a new large-scale rally near the Kyiv City State Administration

17 October 2024 12:30

Investors of Kyivmiskbud and Ukrbud have announced a new large-scale rally scheduled for 24 October at 36 Khreshchatyk Street. This was announced by representatives of the joint initiative group of Ukrbud and Kyivmiskbud complexes, "Komersant Ukrainian" reports

On 26 September, Mayor Klitschko promised to resume construction of the KMB residential complex at a rally of investors near the Kyiv City State Administration.

“Today is 20 days since Klitschko promised to take control of the situation with the resumption of construction. In particular, that the Kyiv budget for 2025 will include an expenditure item for additional capitalisation (financing) of the construction company Kyivmiskbud. However, this issue has not yet been submitted to the budget and land commissions of the Kyiv City Council. Without this, it is impossible to bring the issue of additional capitalisation to the city council session. Even though the mayor promised that these issues would be raised at the commission,” said Rostislav Petrov, a representative of the general initiative group of Ukrbud complexes.

Another representative of the Kyivmiskbud investors, Denys Boyko, added that a memorandum should be signed between the investors and Vitali Klitschko to legally enshrine all the promises.

Investors emphasise that they no longer believe the mayor’s promises and call for pressure on the city authorities.

“On 24 October, the Kyiv City Council will hold a session to discuss the issue of additional capitalisation of Kyivmiskbud. Almost a year has passed since Klitschko’s first promise to resume construction, but this has not happened. Investors, including many military personnel, are dying without waiting for their homes. The KCSA cannot consider the issue of additional capitalisation. At the same time, decisions are being made to recapitalise pocket utility companies. Therefore, we need to put pressure on the deputies – go to their offices with an appeal that we will prepare. And the turnout at the rally should be higher than at the last protest outside the city hall… The facilities are not mothballed. If there is no additional capitalisation of Kyivmiskbud, the cranes will not start working on construction sites in 2025,” Rostyslav Petrov concluded.

Kyivmiskbud’s long-term construction projects

“Kyivmiskbud is one of the country’s largest developers. The company is legally 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 surrounding Kyivmiskbud, and people fear that the houses will not be completed and they will be left homeless.

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Остафійчук Ярослав

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