Private investors of Kyivmiskbud got a chance to complete their housing
1 November 2024 10:14
The Kyiv City Council has decided to increase the authorized capital of PrJSC HC Kyivmiskbud by UAH 2.56 billion through an additional share issue. This is stated in the report of the Kyiv City Council, "Komersant Ukrainian" reports.
Now it’s up to the government, which the deputies called on to stand in solidarity with Kyiv and the construction company’s private investors and allocate UAH 2.28 billion to Kyivmiskbud for the completion of 18 unprofitable Ukrbud facilities.
According to Volodymyr Bondarenko, a member of Kyivmiskbud’s supervisory board and secretary of the Kyiv City Council, this money will stabilize the company’s operations. In this case, it will be able to complete six residential complexes in 2025 and four more in the first half of 2026.
Back in September of this year, Mayor Vitali Klitschko, speaking to an initiative group of investors in unfinished Ukrbud and Kyivmiskbud projects, expressed his intention to determine a financing mechanism by the end of the year so that work could begin next year. He also said that once the money is allocated, the highest-readiness projects will be launched first.
Why did Kyivmiskbud have problems with construction?
In early 2022, amid Russia’s full-scale invasion of Ukraine, Kyivmiskbud suspended the active phase of construction. At the same time, the situation was complicated by the obligations imposed on PrJSC HC Kyivmiskbud in 2020 to complete the construction of residential complexes that the original developer, the Ukrainian State Construction Corporation Ukrbud, was unable to build. The completion is being carried out pursuant to the Order of the Cabinet of Ministers of Ukraine No. 772-r dated June 17, 2020 “On Measures to Address the Problems of Investors of Residential Complexes Constructed by the Companies-Members of the Ukrainian State Construction Corporation Ukrbud”.
The state, represented by the Cabinet of Ministers, undertook to finance the completion of Ukrbud’s facilities by Kyivmiskbud. However, the Government has not allocated any funds.
As of today, 24 construction sites are registered with PrJSC HC Kyivmiskbud. This includes more than 120 residential buildings and 548,674 square meters of living space.
