Lviv hotel “Tourist” put up for sale on Prozorro: what is known about the asset and why it is important
9 October 16:23
The Asset Recovery and Management Agency (ARMA) has announced an open tender on Prozorro.Sale for the manager of the seized Tourist Hotel in Lviv, "Komersant Ukrainian" reports.
The facility was transferred to the management of ARMA by the decision of the Pechersk District Court of Kyiv.
According to independent experts, the cost of the complex is UAH 206.6 million (excluding VAT).
What is “Tourist”?
- 9-storey hotel complex (4851.8 sq. m.)
- a separate restaurant building (1552 sq. m.)
- rooms, a bar, a conference hall, a medical office, and other services,
- parking lot and land plot of 0.67 hectares.
Located in a prestigious area of Lviv, the property has high commercial potential.
How ARMA works
The ARMA is responsible for finding, seizing and transferring assets seized in criminal proceedings to management.
The goal is to prevent the loss of their value and to ensure that they benefit the state.
At the same time, the final fate of such assets is decided by the courts: if the owners are found guilty, the assets may be confiscated.
Putting such assets up for tender shows that:
- the state is trying to ensure the efficient use of seized property,
- business can be involved in asset management, creating additional value,
- lviv community and investors get a chance to restore the operation of a significant facility.
In September, the ARMA received UAH 15 million in cash seized from former MP Volodymyr Makeenko for management.
The agency is also preparing to transfer 87% of the shares of Dniprovazhmash, one of the largest machine-building enterprises in Ukraine, into management.
Over the years, ARMA has been repeatedly criticized for its lack of transparency and low efficiency in managing assets, but the Prozorro tenders should increase confidence in the process.
