It is not expected that investors will be very active in purchase of property until the end of 2013, although several deals on the acquisition of shopping centers in the regions and good land plots by local developers could be signed, experts of consulting companies operating in Ukraine polled by Interfax-Ukraine have said.
“We don’t expect any super activity, apart from the sale of several operating shopping centers in the regions. It’s likely that in 2013, from two to three or four different deals will be signed, where the buyers will be private Ukrainian or Russian investors, not western ones. There is activity among some foreign investors from Europe who announced clear conditions for margins and the category of facilities that they are interested in,” said a managing partner of CB Richard Ellis in Ukraine, Radomyr Tsurkan.
Head of Jones Lang LaSalle in Ukraine Dmytro Sennichenko said that it is likely that investment deals on the high-quality property will be signed by the end of 2013.
“Despite the low level of investment activity on the market, some facilities are being put up for sale, including the continuation of sale processes started last year. Taking into account the postponed investment activity, the sufficient level of liquidity [available cash] and the appearance of new local players on the market, one can expect that the owners of high-quality facilities in the state of construction and operating facilities could change,” Sennichenko said.
Natalia Stelmakh, Head of Investment at DTZ Ukraine, said that taking into account the inaccessibility of credit to buyers, one should not expect the closure of large investment deals until late 2013.
“All property segments are being eyed, but the most popular ones are high-quality, profit-generating office and shopping centers. Interest in high-quality construction sites is seen, and it is possible that good land plots could be bought by local developers,” she said.
She said that it is mainly Ukrainians that are considering property purchases today.
“Most foreign investors have left the country or they are trying to leave it, as they’ve owned facilities for four or five years and now want to invest in other markets,” she added.
Sennichenko said that retailers continue showing interest in the Ukrainian market. Among the brands that are mulling Ukraine are Italian lingerie brands Intimissimi and Calzedonia, which plan to develop in Ukraine via their Russian offices, and Russian clothes department store Modis. In addition, Russia’s Zenden shoe store and Turkey’s hosiery brand Panty have shown interest in Ukraine.
“The Russian Deify family entertainment chain could enter Ukraine in the near future,” he said.
CBRE said that Azbuka Vkusa, Hard Rock Café and Polish shoe chain CCC could enter the Ukrainian market by the end of 2013.
