From banking finance to development: how Oleksandr Sokolovskyi developed the business model of Odesa’s "Prostor"

Over 20 years in banking and real estate finance, a transition from traditional lending to attracting private capital, and participation in the development of Odesa’s development business. Oleksandr Sokolovskyi, partner and CFO of Spatium Group (Prostranstvo Development), has worked in the real estate market since 2005. In 2021, the company, like other developers, faced the challenges of rising costs, construction financing, and changing requirements for housing quality. One of the areas where these issues intersected was the environmental sustainability and energy efficiency of buildings.

In 2021, Ukraine’s construction market was recovering from the pandemic-induced downturn, but this recovery was accompanied by rising costs. According to the National Bank of Ukraine, demand for housing was gradually increasing, while real estate prices were rising amid higher construction costs and restrictions on the supply of new housing.

By the end of the year, the volume of completed construction work in Ukraine had increased by 5.1% to UAH 253.9 billion. Residential construction grew by 16.8% after falling by 16.5% in 2020. At the same time, rising prices for materials and energy resources created an additional burden on developers’ budgets.

For developers, this meant the need to revise their financial models: control costs, seek sources of financing, and determine which characteristics of a future property could be economized on without compromising its quality.

In this context, the experience of Oleksandr Sokolovskyi, CFO of Spatium Group, which develops its development business under the “Prostranstvo” brand, is of interest. His professional activity spans two different environments: bank lending and the financing of construction projects. It is precisely at their intersection that one of the main problems of modern development arises: how to ensure the financial sustainability of construction without reducing housing quality to the minimum possible cost.

From the Banking Sector to Real Estate Management

Oleksandr Sokolovskyi earned a master’s degree in economics from Odesa I. I. Mechnikov National University in 2002. He began his professional career at ProCredit Bank, where he headed the small and medium-sized business lending division.

In 2005, he moved into development. Until 2017, he served as CFO of a development company. Projects during this period included the five-star Hotel de Paris Odessa - MGallery.

In 2017, Sokolovskyi joined Spatium Group as a partner and CFO. According to his professional profile on RBC-Ukraine, one of the areas of his work was implementing a financing model based on private capital instead of traditional bank lending.

This model has its own specific features. Bank lending entails defined repayment terms, interest payments, and requirements for the borrower. Attracting private capital gives a developer a different format of financial relations, while at the same time increasing the importance of investor trust, transparency of financial reporting, and adherence to project completion timelines.

According to Sokolovskyi’s profile, under his financial management the company commissioned 20 properties with a total area of 239,600 square meters. This figure covers the group’s activities over an extended period and is not exclusively the result of 2021.

The Construction Market in 2021: Growing Demand and Higher Costs

2021 was an ambiguous year for Ukrainian development. On the one hand, buyer activity was recovering after the pandemic-induced downturn. On the other, rising prices for construction materials and energy resources made budget planning more difficult.

According to the National Bank of Ukraine, in the first quarter of 2021, homebuyer activity was almost 10% higher than the average for comparable quarters of the previous five years. At the same time, the NBU drew attention to rising housing prices and construction costs.

In February 2022, GMK Center reported that by the end of 2021, housing prices in Ukraine had increased by 17.7%, while prices in the primary market had risen by 16.7%.

For developers, this situation created a difficult choice. The increase in material costs could not always be fully passed on to buyers because of limits on the purchasing power of demand. At the same time, reducing construction costs could affect the characteristics of the completed property.

Under such conditions, the financial model ceased to be merely a cost-control tool. It became a way of setting priorities: which decisions needed to be incorporated into the project from the outset, which could be implemented in stages, and which would not have sufficient economic justification.

For Sokolovskyi, this aspect was particularly important given his experience in bank lending and financial management of development projects.

Energy efficiency becomes a requirement rather than an additional option

Another important factor for the market in 2021 was the change in state requirements for the energy efficiency of buildings.

On January 15, 2021, the Ministry for Communities and Territories Development announced that minimum energy-efficiency requirements for new, reconstructed, and substantially renovated buildings had entered into force.

According to the ministry, as of January 1, 2021, around 6,000 buildings in Ukraine had energy-performance certificates. Almost 44% of them had received the lowest energy-efficiency class, G, while only 1.4% had the highest class, A.

These figures demonstrated the scale of the problem facing Ukraine’s housing stock. Low energy efficiency means a greater need for heating and cooling, higher utility costs, and an additional burden on the energy system.

For new construction, this created a different project-design economics. Thermal insulation, the characteristics of windows and external walls, and engineering systems had to be taken into account even before construction work began.

At the same time, energy efficiency should not be equated with the entire concept of green construction. It is only one of its components, alongside the rational use of materials, water, and energy, as well as construction-waste management.

"Prostranstvo": the development of a real-estate development business in Odesa

The company "Prostranstvo" has been developing its activities in Odesa’s real-estate market since 2019. Its projects encompass residential and commercial real estate, as well as multifunctional spaces.

According to the corporate timeline, in 2021 the company completed the construction of several properties, including those on Rozkydaіlivska, Heraneva, Nedielina, and Pedahohichna streets.

That same year, it developed its medical-services division. A rehabilitation center, ProMed, was opened as part of the "Prostranstvo Zdorovia" platform.

For a development company, expanding beyond conventional residential construction meant working with different types of real estate and, accordingly, different financing and operating models.

However, residential construction remained its main area of focus. It most clearly demonstrated how the company sought to combine a commercial development model with the concept of an integrated urban environment.

Eco City: between the "city within a city" concept and the actual requirements of development

One of the company’s notable projects was the Eco City residential complex on Radisna Street in Odesa.

Its concept involved combining residential buildings with commercial premises, public spaces, and green areas. The project’s promotional materials declared a significant area of landscaping, including approximately 20,000–21,000 square meters.

This model corresponds to the international concept of mixed-use development—the multifunctional use of land. Its main idea is to combine housing, retail, services, and leisure within a single district.

The economic logic is clear: commercial infrastructure can generate additional sources of revenue, while public spaces can increase the appeal of residential real estate.

However, this model also has another side. A large built-up area requires particular attention to traffic loads, population density, engineering networks, and the provision of public spaces. Landscaping shown in a presentation is not automatic evidence of the environmental sustainability of the entire project.

According to the specialized resource "Nerukhomi", the construction permit for the first documentation section of the complex on Radisna was issued on May 20, 2021. The documents provided for nine construction phases, nine residential buildings, and 774 apartments under the said permit.

This is an important nuance when evaluating the project: the declared concept, permitting documentation, actually constructed facilities, and subsequent operation are different stages that should not be combined into a single indicator.

Materials and sound insulation: what construction quality really means

The choice of materials remains a separate issue for modern residential construction.

The "Prostora" projects used ceramic blocks, brick, aluminum, stone, and wood. The company also reported using mineral wool in sound-insulation solutions.

These materials serve different functions. Ceramic blocks and brick are used in wall structures, mineral wool in thermal- and sound-insulation systems, while aluminum, stone, and wood may be used in structural or finishing elements.

It is important to distinguish the quality of construction materials from their environmental friendliness. The use of natural wood or mineral wool alone does not automatically provide grounds for classifying a building as environmentally friendly.

Such a conclusion requires assessing the full life cycle of the materials: production, transportation, installation, operation, and disposal.

The situation is similar with sound insulation. It improves residents’ acoustic comfort, but in itself does not indicate a reduction in the building’s carbon footprint or compliance with international environmental standards.

That is why evaluating modern development requires specific technical indicators rather than marketing characteristics.

The Financial Cost of Environmental Sustainability

For a chief financial officer, environmentally friendly solutions have another dimension—their economic feasibility.

Increasing the thickness of thermal insulation, installing energy-efficient equipment, using high-quality materials, or creating green areas may increase a developer’s initial costs. At the same time, some of these investments can reduce operating expenses or affect the consumer appeal of the real estate.

But the effect is not automatic. It depends on the cost of the technology, the building’s specifics, energy tariffs, the quality of installation, and the costs of subsequent maintenance.

Therefore, such solutions should be evaluated by calculating the total life-cycle cost of the building, rather than only the initial cost per square meter.

For Sokolovskyi, whose professional specialization is related to real estate financing, this is one of the key management aspects. The financial model should take into account not only construction and sales timelines but also the product’s long-term characteristics.

At the same time, confirming the economic efficiency of specific environmentally friendly solutions requires data on actual costs, energy consumption, and operating results. Without this data, one can speak of intentions and concepts, but not proven payback.

Where the line between environmentally friendly development and marketing lies

In the Ukrainian real estate market, the words "eco," "green," and "energy-efficient" are increasingly used in developers’ communications. However, these concepts have different meanings.

A green area near a building is a landscaping characteristic. High-quality thermal insulation is a characteristic of energy efficiency. The use of a particular construction material is a technological solution. None of these features alone confirms a building’s compliance with comprehensive sustainable construction standards.

A full assessment requires data on energy consumption, water use, waste management, the origin of materials, and the facility’s impact on the environment.

This is also important for "Prostora." The company’s projects demonstrate an interest in landscaping and comprehensive territory planning; however, without an independent environmental audit or certification, it would be incorrect to call them certified green buildings.

What determines a developer’s competitiveness

The professional development history of Oleksandr Sokolovskyi shows how financial expertise has become an important part of managing a development business. His experience encompasses bank lending, real estate financial management, and raising private capital.

In the case of "Prostranstvo," this experience developed against the backdrop of changes in the Ukrainian market: the recovery of construction after the pandemic, rising material costs, new energy-efficiency requirements, and the gradual transition to comprehensive planning of residential areas.

However, the main question for the industry remains open: is the buyer ready to pay more for quality and energy efficiency, and can the developer confirm the economic advantage of such investments with specific indicators?

The answer depends not only on architecture or a marketing concept. It is shaped by financial discipline, construction transparency, the quality of work performed, and actual operational results. These are the criteria by which not only "Prostranstvo" should be assessed, but Ukrainian development as a whole.