Dragon Capital Acquires Horizon Park Business Center in Kyiv
The deal value was not disclosed.
Horizon Park Business Center consists of two class A 18 and 19-story office towers, a 3-story building connecting them, located at 12 Amosova Str., and a 5-story class B office building at 4V Mykola Grinchenko Str. Being the largest business park in Kyiv, it also boasts surface, deck and underground parking for over 1,100 cars as well as extensive social infrastructure.
“We are very pleased to announce the completion of the largest deal on the Ukrainian office real estate market over the past ten years, on which our team has been working since late 2015. Along with the acquisition of the 7,382 square meter front building at 4V Mykola Grinchenko in early October, this agreement allowed us to consolidate Horizon Park Business Center in its original format – five office buildings with a total area of 76,412 square meters located on a 5.1 hectare land plot in central Kyiv,” said Volodymyr Tymochko, Managing Director of Private Equity, Dragon Capital.
“Horizon Park Business Center will become the seventh and largest property in our office portfolio, which has expanded over the past year to double in size reaching 160 thousand square meters. We believe growth in demand for office space against the backdrop of recovering business activity in the country and gradual compression of vacancy rates makes this real estate segment attractive for investment in the coming 3-5 years,” said Tomas Fiala, CEO of Dragon Capital. “Since 2016, Dragon Capital, together with its European and American partners, has invested $400 million into Ukrainian real estate. Our future investment plans will significantly depend on the pace of reforms in Ukraine, above all in judiciary and law enforcement.”
“This agreement testifies to the success of the strategy chosen by the Ukrsotsbank team for this project. Thanks to the team’s professionalism, we not only consolidated a unique property and preserved cooperation with the key tenants of the business park, but also successfully prepared it for sale. The deal became significant for the office real estate market and the largest real estate transaction in the history of the Ukrainian banking system. Such transactions help banks relieve pressure on the balance sheet from non-core assets and attract additional resources to develop key business areas and increase lending to households and the real sector of the economy”, said Ivan Svitek, Chairman of the Management Board, Ukrsotsbank.
About Dragon Capital
Dragon Capital is one of the largest groups of companies in Ukraine that works in the field of direct investments and financial services, providing a full range of investment banking and brokerage services for corporate and private clients. The company was founded in 2000 in Kyiv and has a successful 18-year track record of private equity investments in Ukraine.
About UCPIH Ltd
UCPIH Ltd (Ukrainian Commercial Property Investment Holding) is an investment holding company that specializes in commercial real estate investments in Ukraine. Its main shareholder is Dragon Capital Investments Limited.
Ukrsotsbank is one of the largest universal banks in Ukraine that has been operating in the local market since 1990 and offers a full range of modern financial services to both individuals and legal entities. Ukrsotsbank together with Alfa-Bank Ukraine are members of the international banking group ABH Holdings S.A. with headquarters in Luxembourg.