Hotel Ukraina in the center of Kyiv was sold at auction for UAH 2.5 billion: the price increased 2.4 times

Today, on September 18, an online auction for the privatization of the Ukraina Hotel in the center of the capital took place. The auction was held online for the first time in the Prozorro.Sale system, SPFU reported, UNN writes.

Details

Three bidders competed for the ownership of the asset. The value of the privatization object increased from the starting price of UAH 1,047,637,152 to the final price of UAH 2,511,777,888.

The lot includes a hotel complex of almost 22.5 thousand m² with 365 rooms, a restaurant, a business center, six conference halls and other facilities. It also includes a security building, non-residential buildings, parking lots, an extension and a shed.

According to the Prozorro.Sale system, the winner of the auction was Ola Fine LLC.

"Competition has led to a 2.4-fold increase in the value of the asset. This is a clear confirmation of the Ukrainian market's readiness to compete for large objects. Next, the SPFU team plans to hold online auctions for the privatization of United Mining and Chemical Company JSC, Aerok LLC and Demurinsky GOK LLC," said Ivanna Smachylo, acting head of the SPFU.

The winning bidder has 30 business days to pay the offered price of the lot. After that, it is obliged to comply with all the established privatization conditions.

According to the terms of sale approved by the government, according to the Prozorro.Sale, the buyer must maintain the company's core business, pay off wage arrears and budgetary obligations within six months, and repay overdue accounts payable. As of the end of March, Ukraina Hotel's wage arrears amounted to UAH 3.9 million, budget arrears amounted to UAH 10.8 million, and overdue accounts payable amounted to UAH 21 million. In addition, the buyer must provide social guarantees to employees in accordance with the law and cannot dismiss employees within six months of acquiring ownership.

The proceeds from privatization go to the state budget, and the proceeds from the sale of sanctioned assets go to the fund for liquidation of the consequences of armed aggression.

"The first large-scale privatization auction proves that, despite the war, privatization is possible and necessary, and it is being carried out in a fair, open and transparent manner. It is also evidence that investors believe in our country, its opportunities and prospects. As a result, the economy has received the necessary investments in modernization and development. This year, we expect to receive UAH 4 billion from the privatization of state property to the budget, and in January-August we have already held 275 successful auctions and received a total of UAH 2.4 billion. The auction procedure allows us to significantly increase budget revenues," said Yulia Svyrydenko, First Vice Prime Minister and Minister of Economy of Ukraine.

Addendum

On July 19, 2024, the SPFU announced Ukraine's first online auctions for large-scale privatization on Prozorro.Sale. The next auction for the sale of a large-scale privatization object - United  Mining and Chemical Company - will be held on October 9, 2024. The starting price of the lot is UAH 3.9 billion.