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Kyiv City State Administration

Dear visitor,

When you hear someone say “I know my city like the back of my hand”, you assume they are exaggerating. I am not. One of my very fi rst jobs was as a Kyiv city tour guide, taking groups of visitors and school kids around our numerous sightseeing spots. My love and respect for the city, its history, its dynamism, its atmosphere and its drive – that’s where it all began. Today, my connection with the city and my goal to steer it on a journey to success remain deeply personal.

Kyiv is a city of culture, intellectual achievement and untapped entrepreneurial spirit. Kyiv is Europe’s 7th largest capital, with a young, highly skilled population and over 4 million visitors a year. Right now, Kyiv’s most important resource is its investment potential. The municipality owns over 83000 hectares of land and 11,5million sq. meters of real estate. It is the country’s largest landlord and my administration has worked hard to ensure that we are ripe and ready for new tenants.

It is no secret that Ukraine fi nds itself in the midst of a diffi cult transformation. And yet, this trying time off ers us a unique opportunity for a long-awaited step change in how we do business. As Mayor, I am committed to helping Kyiv succeed as a transparent and welcoming business environment. My administration has enforced transparency and protection measures for all investors through a single window called Kyiv Investment Agency. We have over 50 young specialists, including in the real estate sector, ready to assist investors in navigating city bureaucracy. We have already launched truly transparent and accountable electronic tender processes. Every day we are cutting down red tape so that investors and developers do not miss out on potential opportunities. Just ask some my colleagues here today about our fi rst success stories with real investors.

Projects on energy-saving building practices, waste recycling, construction of new kindergartens and schools, and medical facilities are all steaming ahead in the city. With Kyiv’s citizens continuing to spend 70% of their income on consumer goods, it is perhaps unsurprising that new shopping centers are continuing to open and thrive in the city. Compared to other European cities, Kyiv has an open fi eld of potential to build trade centers. For every 1000 Kyiv residents we have only 385 sq. meters of commercial space. In Stockholm the same number of consumers would enjoy about 900 sq. meters, and in Dubai the numbers go higher than 1000 sq.meters. I know that with the right support, many more real estate developers can benefi t from this burgeoning market.

I want to extend a personal guarantee of support, loyalty and commitment to every individual and organisation that seeks to work and invest in Kyiv. I have no doubt that those joining us on our journey will reap the benefi ts of Kyiv’s transformation. Let me show you the vibrant potential our city is off ering you today. Welcome to Kyiv!

Vitaly KlitschkoMayor

City of Kyiv

INTRODUCTION

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Ukraine is the largest country in Europe. Ukraine is a country with more than a thousand years of history and traditions that originate in antiquity.

The time in Kiev is 7 hours later than US Eastern Standard, 2 hours later than Green-wich Mean. Ukraine covers one time zone. Daylight Saving Time is in eff ect from the fi rst Sunday of April until the last Sunday of October.

Ukraine is member to numerous world and re-gional international bodies, including United Nations (UN), OSCE, the Council of Europe, EU Energy Community, the GUAM and the Commonwealth of Independent States (CIS). The country is currently taking steps to accede to EU and NATO, and has special partnership with both organizations.

UKRAINE – the heart of Europe

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UKRAINE – THE HEART OF EUROPE

Ukraine obtained a market economy status from both the USA and the EU and has also joined the World Trade Organization (WTO). Foreign direct investment (FDI) has continued to fl ow in, although in a relatively low volume.

In 1992 Ukraine became a member of the Interna-tional Monetary Fund (IMF) and the International Bank for Reconstruction and Development (World Bank). It also became affi liated with the European Bank for Reconstruction and Development (EBRD).

Ukraine has anti-money laundering controls approved by the global Financial Action Task Force (FATF).

ADMI NISTRATIVE STRUCTURE Ukraine is a unitary republic, not a federal state. The country is divided administratively into 24 provinces called «oblasti»; two cities – Kiev and Sevastopol – carry the same status as an oblast. The Crimea is an autonomous republic within Ukraine. There are 447 towns and 28,800 villages in Ukraine.

Kiev (in Ukrainian – “Kyiv”), the biggest city in Ukraine, capital of Ukraine and economic, cultural, and educational center, has a population of 2.6 mln.

The geographical centre of Europe is situ-ated in the territory of Ukraine, not far from the city of Rakhov in Zakarpattia region.

1.

The grave of the founding rabbi of Hassi-dism, situated near Uman’, is a pilgrimage site for Hasidic Jews.

2.

Ukraine contains around 5% of the worlds mineral resources.6.

The fi rst state constitution in Europe was cre-ated by a Ukrainian politician Pylyp Orlyk. On April 5th, 1710 he was elected the Hetman of Zaporozhye troops. On the same day Py-lyp Orlyk has announced “the Constitution of the rights and freedoms of Zaporizhye army”. For example, U.S. Constitution was adopted in 1787 and French and Polish in 1791.

3.

AN-225 “Mria” (from Ukrainian – “a dream”) is today the biggest and the heaviest aircraft with the highest cargo capacity in the World. This unique cargo plane was constructed in the 1980’s by the Antonov’s Development Laboratory (Kiev, Ukraine). Its length is 84 m, height – 18 m, total cargo capacity – 250 tons.

5.

More than 12 million foreign tourists visit Ukraine each year, to see the Carpathian Mountains, the coastline of the Black Sea, the Dnieper River, vineyards, ruins of ancient cit-ies and castles; ancient churches, cathedrals, and monasteries; world-class opera and ballet, and more.

7.

The fi rst computer in continental Europe was built in Kiev under the supervision of the scholar Sergey Lebedev and well-known sci-entist Victor Glushkov in 1950.

4.

Ukraine has the World’s 5th largest and fast-est growing IT outsourcing services market in the World, with revenues in 2014 expected to reach $1 billion.

8.

8 INTERESTING FACTS ABOUT UKRAINE

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AS FOR 2014 KYIV COULD BE IDENTIFIED AMONG OTHER WORLD CAPITALS AS ONE WITH:• Vibrant democracy

• Strategic geographical location

• Wide range of investment opportuni-ties in various fi elds, including IT and aerospace

• Hosting successful businesses

• A city sourcing talents

• Highly qualifi ed labor force

• Ambitious urban development projects

• Among top 100 Outsourcing Destina-tions according Tholons

• Low Crime Index for 2014

• Improved investment framework

KYIV – the region of opportunities

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KYIV – THE REGION OF OPPORTUNITIES

KYIV IS ONE OF THE OLDEST AND THE SIXTH LARGEST CITY IN EUROPE after Moscow, London, St.Petersburg, Berlin and Madrid. Kyiv is now also one of the most attractive and thriving focal points of international business and cooperation and an important connection hub right in the centre of Eastern Europe that links East and West.

KYIV IS THE LARGEST POLITICAL, ECONOMIC AND FINANCIAL CENTER OF UKRAINE.The city is located at the intersection of key lines connecting Western Europe with Asia, and North-ern Europe with the South and Middle East. Two international airports Borispol and Kyiv connect the city with the capitals and major cities of all continents.

KYIV IS A MAJOR TRANSPORT HUB OF UKRAINE (railways and highways, river port and airports)The city is located at the intersection of key lines connecting Western Europe with Asia, and North-ern Europe with the South and Middle East. Two international airports Borispol and Kyiv connect the city with the capitals and major cities of all continents.

KYIV IS THE FINANCIAL CENTER OF THE COUNTRY. Over 60% of fi nancial sector assets of Ukraine are concentrated in Kyiv.Ukrainian headquarters of such famous world banks as Intesa Paolo (Pravex Bank), Erste Bank, Raiff eisen Bank, Unicredit Bank, BNP Paribas, etc. are based in Kyiv.

KYIV’S CURRENT POSITION AND TRENDS

SOCIAL RESPONSIBILITY IS AN IMPORTANT ELEMENT OF KYIV CITY DEVELOPMENT STRATEGY The key areas of ensuring socially responsible growth:• Reduction of the gap in the incomes level• Addressed subsidies on the use of public trans-

port and water supply, sewerage and heating services

• Social integration• Aff ordable dwelling• Provision of social infrastructure objects for

citizens

KYIV’S ROLE IN INTERNATIONAL CONTEXT. EAST AND WEST MEETING PLACE SOME GLOBAL TRENDS THAT KYIV CAN SUCCESSFULLY USEBusiness globalization. Among many trends and instances of globalization, especially important potential for Kyiv is off ered by: • outsourcing of various business part in the

regions with low costs • “regionalization” of management, i.e. placement

of regional headquarters closer to the sales markets

• growth of passenger and cargo fl ows

International specialization. To attract investments and create competitive environment, countries and cities specialize in the niches where they have fi rst-class expertise or advantages in expenses (or both). Individualization of tourism. With development of information technologies, tourism becomes less and less “standardized” when a tourist uses avail-able information about cities, sightseeing places and local events plans an individual travel.

1532years old

10districts

84.3hectares

2.8million residents

Reservoirs

Green zone

Residential area

70reservoirs,including

Dnipro River

The width of Kyiv from north

to south is

50 km

The width of Kyiv from east

to west is

56 km

1/2of the city`s

territoryis mainly parks and gardens

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KYIV – THE REGION OF OPPORTUNITIES

1 milliontourists visit Kyiv annually

By 2025 Kyiv is expected to be receiving up to

2.5 million tourists a year

3-hour airtraffi c zone

Main transport fl ows directions

OPPORTUNITIES FOR CREATION OF UNIQUE KYIV’S POSITION THE MAIN POTENTIAL CLUSTERS FOR USING KYIV’S ADVANTAGES CAN BE AS FOLLOWS: • International cultural tourism where Kyiv’s potential is signifi cantly underused• Business and conference-tourism. For citizens of the majority of countries, entrance to Kyiv is visa-free,

and a fl ight from the majority of European states, Near Eat and Middle Asia takes not more than 3–4 hours.

• Passenger and freight transport, logistics (fi rst of all, air companies, provided there is infrastructure devel-opment) creation of an international logistic center

• Center of international companies’ headquarters, especially regional centers of global corporations and fi rms operating on the CIS markets

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Since becoming independent in 1991, Ukraine has moved from a centrally-planned economy to a more market-oriented environment, particularly in the area of financial services.

The author of this article is Andy Kuzich, Business Development Director of PwC in Ukraine.

Andy is a British Citizen with 20 years experience in Ukraine and along with his 400 colleagues has an extensive network of contacts in all business sectors.

If you would like to learn more about the business environment and opportunities to invest in Ukraine you can reach Andy on +380 97 365 8508 Linked in/Facebook : Andy Kuzich email: andy.kuzich@ua.pwc.com

BUSINESS ENVIRONMENT

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IMF FUNDINGAt the time of writing this document Ukraine was in advanced negotiations with the IMF for an Extended Funding Facility ( EFF) rumoured to be worth up t0 USD40 billion. A large bailout, but still modest compared to the USD300 billion injected into Greece.

The Ukrainian currency, the Hryvnia, has lost some 70% of its value against the US Dollar during 2013-15. The IMF bailout is expected to bring exchange rate stability and restore investor confidence.

EU Association Agreement makes Ukraine an attractive manufacturing location

The 2013/14 “revolution of dignity” was sparked by the former President’s refusal to sign the EU Association Agreement and turned into a protest against systemic corruption. Since then, a new democratically elected Government has signed the EU Association Agreement which comes into full force on 1 January 2016. Ukraine already benefits from the unilateral granting by Europe of free trade concessions under the agreement which allow almost 95% of goods and services to be exported to Europe free of tariffs and quotas. As Ukraine is adjacent to 4 European countries it is being seen as an ideal manufacturing location for export to Europe, especially in the border regions close to Europe where there is a skilled and low cost workforce.

PROPERTY MARKETForeign citizens and legal entities have the right to own apartments, houses and other facilities. Ownership of non-agricultural land is also pos-

sible, although legal and regulatory restrictions can significantly complicate the process.

Ukraine’s property markets remain depressed, though there are signs of some stabilisation. The commercial property market has been character-ised by relatively stable rental rates and slightly decreased vacancy rates. The rent for Class A of-fice buildings peaked in 2008 at over USD 70 per square metre and has since fallen to an average of USD 25-30 per square metre, depending on the region.

Residential property has yet to recover from the housing bubble, when prices increased by 550% between 2002 and 2007.

BUSINESS RESEARCH – FINDING PARTNERSThere are a number of foreign business chambers in Ukraine including the American Chamber of Commerce (www.chamber.ua), the European Business Association (www.eba.com.ua). There are also business associations for German, Brit-ish and Japanese businesses, among others. PwC and other Big 4 Accounting firms are all represented in Kyiv and have expertise in market research and identifying business partners as well as conducting due diligence.

The author of this article is Andy Kuzich, Business Development Director of PwC in Ukraine.

Andy is a British Citizen with 20 years experience in Ukraine and along with his 400 colleagues has an extensive network of contacts in all business sectors.

Andy Kuzich

The economy grew at an annual rate of over 7% over the period from 2000 to 2008. This growth was fuelled by strong domestic demand and solid consumer and investor confidence. The economic and financial crisis that unfolded in 2008 shook investor confidence and stalled the inflow of capital. Ukraine remained in recession throughout 2009, but experienced a recovery thereafter as global conditions slightly improved.

In 2014 the annexation of Crimea and security issues in the east of Ukraine have made invest-ment conditions more challenging. GDP in 2014 fell by close t0 10% and is expected to contract in 2015 by a further 4-5% before returning to a growth path in 2016.

The contested territories in the far east of Ukraine represent some 3% of overall territory. The remainder of the country is peaceful and enjoys business as usual, albeit with recession slowing down business and creating opportuni-ties for investors as some distressed asset owners look to liquidate attractive assets for competitive prices. In particular the capital city of Kyiv with a population of 3 million is more than 500Km away from affected areas and business activity continues normally. Central government and city authorities are committed to a rapid reform process and there is substantial interest from international donors to support the reform pro-cess, which includes massive deregulation in the real estate market.

BUSINESS NVIRONMENT

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THE LEGAL ENVIRONMENT FOR INVESTMENT IN UKRAINIAN REAL PROPERTYFollowing political turbulence in early 2014, Ukraine is undergoing a substantial political, economic and legal transformation. In spite of the current military action in the Donetsk and Lugansk regions, Ukraine made a vital shift towards Europe by ratifying the Asso-ciation Agreement with the European Union on 16 September 2014.

LEGAL ENVIRONMENT

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LEGAL ENVIRONMENT

foreign companies and individuals are not allowed to own agricultural land in Ukraine.

In the abovementioned spheres, substantial actions are being taken to make the legal framework more investor-friendly and secure. One major change starting from 1 January 2015 is that all informa-tion about registered title to real estate and land, including information about title holders and encumbrances aff ecting the land, has been made open to the public (previously such information was available to title holders only), including via electronic enquiries. Public access to information is currently being implemented with regard to the land and town-planning cadastres as well. The terms and procedures for registration of title to and encumbrances over real property and land were further shortened and simplifi ed in 2014. As a result, title checks and registration of titles/encum-brances over real property has become signifi cantly more effi cient and less bureaucratic.

The planning and construction sectors have also seen substantial developments. For straightfor-ward construction projects, Ukrainian law allows construction to commence following submission of a special declaration to the state authorities. More complex construction projects require a special permit. The procedure for obtaining such permits is also being simplifi ed by introduction of a “one-stop-shop” principle. Starting from 1 July 2014, the law also allows construction projects to be split into stages with diff erent categories of complexity (i.e., residential and non-residential sections), so that the part of the building with the lower level of complexity can be planned and constructed based on the simplifi ed procedures.

Ukraine is in the process of creating a zoning-based approach to construction. In particular, starting from 1 January 2015, land for construction pur-poses is granted into ownership and use subject to availability of the zoning plans or detailed plans of territories (although such plans are still being developed in many territories of Ukraine). The procedure for obtaining title to state and municipal land for construction and other purposes is also based on a “one-stop-shop” principle.

In structuring commercial construction projects, foreign investors often prefer to cooperate with local partners in order to optimize business pro-cesses by utilizing their partners’ local knowledge of specifi cs and market. On the fi nancing side, real

As a large country with a population of over 40 mln, Ukraine remains an attractive and unsatu-rated market, off ering the potential for rewards which outweigh the challenges. Although the current diffi culties have put signifi cant pressure on the Ukrainian economy, there are sectors and businesses within the country which are still investment-attractive and off er a considerable level of profi tability, including agriculture, industry and infrastructure.

Implementation of the EU Association Agree-ment requires Ukraine to carry out a number of institutional reforms including trade and economic integration, reorganization of government bodies, as well as a gradual approximation of Ukraine’s leg-islation to EU norms and standards within timelines varying between 2 and 10 years after the entry into force of the Agreement.

During 2014, the legislative environment for doing real estate business in Ukraine substantially im-proved. In the World Bank’s “Doing Business 2015” report Ukraine ranks 96 out of 189 economies, up 16 places from the previous year. The improvement recognized the actions taken by the Ukrainian

Government in 2014 despite the diffi cult geopoliti-cal situation and economic challenges.

State and local authorities are being reorganized and decentralized to make their operations more eff ective and business-oriented. Anti-bribery and lustration procedures are also being actively ap-plied to decrease the level of corruption.

On the corporate side, the rules for establish-ing, administering and dissolving companies were further simplifi ed by shortening the terms for registration/dissolution, abolishing certain registration charges, cancelling the requirement to have a company stamp, etc. Inter alia, it now takes only 2 business days to register a limited liability company, compared to 2 weeks under the previous procedures. The Ukrainian government has also placed a moratorium on all inspections of business by state controlling authorities (except for fi scal inspections) until July 2015.

In the sphere of real estate and land, foreign inves-tors enjoy practically the same rights granted to Ukrainian companies. Certain limitations apply only in relation to the ownership of land - for instance,

estate investments are often made via off shore jurisdictions such as the Netherlands (Cyprus is no longer attractive due to recent legislative changes in Ukraine); limited liability companies remain the most popular form of special purpose vehicle for the implementation of construction projects.

In the PPP sector, with the Law on Sea Ports com-ing into eff ect in 2013, sea port projects became an attractive area for foreign industrial investors in Ukraine. While the Ukrainian Government still has work to do on certain detailed regulations, the reforms already carried out in the sector have enabled investors to acquire rights to operate commercial port facilities (i.e., terminals) based on concession or lease agreements, as well as to construct and fully own major port facilities, such sea terminals including shipping berths. The state has retained ownership of certain strategic port facilities such as navigation facilities, harbour waters, etc.

Having analysed the on-going legislative initiatives, we expect further simplifi cation of land allocation, planning, construction and permitting procedures for real property operation, as well as a general improvement of conditions for doing real estate business in Ukraine in accordance with EU and international practices.

DLA Piper Ukraine 77A Chervonoarmiyska StreetKyiv 03150, UkraineT: +380 44 490 9575W : www.dlapiper.com

For legal support in your projects in Ukraine please contactNatalia KocherginaPartner and Head of Real Estate T: +380 44 490 9563E: natalia.kochergina@dlapiper.com

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TAX ENVIRONMENT

Tax environment in Ukraine has been prepared by the experts of EY Tax Advisory Team

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TAX ENVIRONMENT

PERSONAL TAXESPersonal income tax (PIT). Generally, 15% PIT applies to taxable income within 10 minimum wages (now UAH 12,180 / ≈ USD 750), and 20% PIT applies to income exceeding that threshold. Passive income (e.g., interest, royalty, investment income, dividends from a non-resident) is taxed at fl at 20% PIT. Dividends paid by most of Ukrainian entities are taxed at 5%.

Military levy. A military levy of 1.5% applies to any income subject to PIT. The levy is temporary, until cancelled by the Parliament.

Social Security. The Unifi ed Social Tax (the UST) is linked to the Ukrainian payroll (capped by the max-imum monthly base, which is currently UAH 20,706 / ≈ USD 1,275) and is due from both employer and employee. The employee’s part of the UST is 3.6%, to be withheld from the employee’s gross monthly salary. The employer’s UST ranges from 36.76% to 49.7% depending on the class of professional haz-ard and is accrued on top of the employee’s gross monthly salary.

The employers are entitled to reduction of the UST rate in 2015 by up to 60% if they meet a number of criteria demonstrating increase (i.e., “legalizing” of previously “hidden”) payroll. Tentatively, starting 2016 the UST rate should be reduced by 40% for all employers.

KEY CORPORATE TAXES Corporate profi t tax (CPT). Ukrainian companies are subject to CPT on their worldwide profi t. Foreign legal entities are subject to tax on the Ukrainian-sourced income.

The tax base is a fi nancial result under Ukrainian GAAP or IFRS rules, with adjustments for a few tax diff erences (inter alia, related to thin capitalization, transfer pricing, royalties, purchases from low-tax entities, profi t from securities, etc.). Companies whose revenue net of indirect taxes is below UAH 20mln (≈ USD 1,23mln) may opt out of using the tax adjustments. The law allows unlimited carry-forward of losses.

The CPT rate is 18%. Tax holidays until 2016 are available for “small” businesses (companies with limited turnover and activities).

CPT reporting period is a calendar year. Taxpayers with taxable income above UAH 20 mln (except for newly created ones) must accrue and pay monthly advance CPT payments.

The company distributing dividends must pay an 18% Advance CPT (ACPT) on the amount of the dividends. ACPT can be off set against regular CPT liabilities.

Dividends and other taxable profi ts distributed to nonresidents are subject to 15% withholding tax, unless an applicable double tax treaty provides otherwise.

Value added tax (VAT). VAT is levied on the supply of goods and services where the place of supply is Ukraine, and on the import/export. Certain supplies are not VAT-able or VAT-exempt. Registration as VAT payer is required if VAT-able sales exceed UAH 1 mln (≈ USD 61,5k) during any rolling 12-month period. Voluntary registration is available regardless of this threshold.

The standard VAT rate is 20%. Exports of goods are usually subject to zero VAT rate. 7% VAT applies to medicines and medical products.

For each VAT-able supply sellers should issue and register in state registry a digital VAT invoice. Start-ing 1July 2015 mandatory VAT accounts should be deployed to collect VAT prepayments from taxpayers..

Simplifi ed taxation. Entrepreneurs and small businesses, with exceptions for certain activities, can qualify for simplifi ed “single levy”. The single levy replaces CPT, land tax, personal income tax (for entrepreneurs) and, in some cases, VAT. There are qualifi cation criteria for each of four groups of simplifi ed taxation (e.g., type of activity, number of employees, annual turnover). The rates of single levy for legal entities (non-agricultural producers) are 2% of revenues (if VAT is paid) or 4% (without the need to pay VAT).

PROPERTY TAXESLand tax. The land tax applies to land owners and leaseholders of state/municipal land. The tax is based on the assessed value of land. The rates are established by local authorities depending on loca-tion and type of land. The maximum tax rate for a valuated land within city boundaries is 3%.

Real property tax. Real property (other than land),of both individuals and legal entities is taxed at up to 2% of the minimum wage per m2 of its total area (currently it is UAH 24.36 / ≈USD 1,5).

Individuals are exempted from tax for 60m2 of total area of apartments and 120m2 of total area of residential houses. For companies the exemptions include, inter alia, industrial and agricultural land. Local authorities establish the exact tax rates and additional benefi ts. Tax on commercial property may be off set against CPT.

Transport tax. All owners of motorcars with engine capacity over 3,000 cm3 and which have been used for less than fi ve years are liable to pay fi xed transport tax of UAH 25,000 (≈USD 1540) per year for each such car.

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REAL ESTATE MARKET

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The year 2013 witnessed the fi rst signs of a material fl ow of assets coming to the market via banks, which have recovered secured assets on non-performing loans. This pattern strengthened in 2014, particularly in view of liquidity problems of several commercial banks, and it is expected to increase in 2015.

Despite a broad range of prime and secondary assets in all classes now being available for sale, liquidity has remained disappointingly low due to the worsening overall investment climate in Ukraine and, the ever diminishing availability of debt fi nance. Where assets are available with the transfer of some debt then, this materially adds to potential liquidity.

YIELDSDuring 2014 DTZ witnessed approximately a 100 basis point yield movement in the market. At the same time, however, this analysis in the absence of arms length transactions is based upon investor sentiment demonstrated in interest being expressed for a number of assets.

Because of the falling of rents in hard currency, combined with high country risks of Ukraine, DTZ witnessed strong downward pressure on capital values across all asset classes.

At the end of 2014, prime net initial yields stood at around 13.5% for prime offi ce and retail space. Investor sentiment for prime net initial yields

Due to high country risks, there were only a few secondary investment deals reported on the commercial property market in Ukraine during 2014. However, most foreign and local investors recognize the country’s property market potential.

Whilst yields have only shown moderate upward movement, coupled with falling rents this has driven down capital values meaning that opportunities for market entry are now more attractive particularly where debt transfer is a possibility. Investors interest has particularly been strong where assets can be acquired at below build cost values.

TRANSACTIONSDTZ estimates that total direct investment volume in the commercial property market in Ukraine during 2014 amounted to around USD 47 million.

The completion of several sizeable investment transactions were postponed during 2012-2014, due to market uncertainty and deteriorating country risk particularly in 2014. Whilst interest still remains in closing some of these deferred transactions, investors take a highly cautious approach to investment opportunities in Ukraine.

Quality income generating offi ce, retail and especially logistics properties located in Kyiv remain the most interesting to investors.

for logistics properties in the Greater Kyiv area remained generally stable at 15% (Fig. 16).

OUTLOOKDTZ expects that in the fi rst half of 2015 prime net initial yields in Kyiv will remain generally fl at across all property sectors. Nevertheless, the overall fall in market rents has led to a fall in capital values such that modern income producing investments can in certain circumstances now be acquired at or below build cost.

DTZ are witnessing increased interest of domestic investors seeking to acquire small investments up to the value of US$10M which, can be acquired out of equity. An increase in enquiry interest is also being registered for good quality operating logistics complexes as, this sector has demonstrated a higher degree of resilience to the overall market downturn with occupancy well below 10%. A number of logistics complexes can be made available with debt transfer further adding to the attractiveness of this sector.

Yields in the commercial property sector remain sensitive to general political and economic situation in the country. In the longer term, as the Ukrainian property market matures, there is further scope for yield compression, coming off comparatively high present levels accompanied with opportunities for rental uplift.

INVESTMENTSManaging DirectorNick Cotton+ 38(0)44 220 30 60nick.cotton@dtz.kiev.ua

REAL ESTATE MARKET • INVESTMENTS

Director, Capital MarketsVolodymyr Mysak+ 38(0)44 220 30 60volodymyr.mysak@dtz.kiev.ua

Investment volume in Ukraine* (million USD)

0100200300400500

2009

2010

2011

2012

2013

2014

2015

**

Office Retail Industrial Hotel

Source: DTZ Research Note: All figures are period end.*The figure includes secondary investment transactions (the sale of land plots was excluded).** Year-end projections.

05

101520

2007

2008

*

2009

*

2010

*

2011

*

2012

2013

*

Q1

2014

*

Q2

2014

*

Q3

2014

*

Q4

2014

*

Prime yields in Kyiv (%)

Office Retail Industrial

Source: DTZ Research Note: All figures are period-end*No true open-market secondary investment transactions, yield perceived by market players.

30 31

Suppressed business dynamics, combined with significant new office delivery, resulted in a further increase in vacancy and a downward correction of rents on the office property market in Kyiv during 2014.

Nevertheless, compared to other Central and Eastern European countries on a sq.m per capita basis, Kyiv remains very structurally under supplied with offi ce space, particularly of ‘A’ grade quality. This not only off ers opportunities for rental growth in the medium term but, also suggests that in the medium term there is opportunity for the further development of modern offi ce stock.

SUPPLYThere was approximately 1,714,272 sq m (GLA) of speculatively delivered offi ce stock in Kyiv at the end of 2014, excluding government buildings and offi ces constructed by owner-occupiers (Fig. 4).

Cumulative new offi ce supply in 2014 in Kyiv reached approximately 154,768 sq m (GLA) and was around 18% higher than at the end of 2013. As of early 2015, around 202,000 sq m (GLA) of new offi ce space was under construction, scheduled for delivery during 2015.

The offi ce property market in Kyiv remains structurally undersupplied compared to other CEE capitals in terms of total offi ce stock, stock per capita, as well as, importantly, the variety of formats and the quality of properties available for occupation (Fig. 5).

OFFICESManaging DirectorNick Cotton+ 38(0)44 220 30 60nick.cotton@dtz.kiev.ua

REAL ESTATE MARKET • OFFICES

Director, Capital MarketsVolodymyr Mysak+ 38(0)44 220 30 60volodymyr.mysak@dtz.kiev.ua

Major indicators of office property market in Kyiv

Source: DTZ Research Note: All figures are period-end

01020304050607080

0

50 000

100 000

150 000

200 000

250 000

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

New supply (sq m, LHS)Take-up (sq m, LHS)Vacancy rate (%, RHS)Prime rent ($ / sq m / month, RHS)

Total office stock in Kyiv versus other CEE Capitals (mln sq m)

Source: DTZ Research Note: All figures are year-end.

0,00,51,01,52,02,53,03,54,04,55,0

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Q1

2014

Q2

2014

Q3

2014

Budapest Warsaw Prague

Bucharest Kyiv

32 33

RETAILKiev / Ukraine / 2A Mechnikova str. BC Parus

REAL ESTATE MARKET • RETAIL

tel./fax: +380 44 5372364 www.utgcompany.com

SUPPLYDuring 2014, the Kyiv market of trade real estate was added by commissioning 4 Shopping cen-ters with gross leased area of 80,620 sq.m.: SC Prospect (GLA – 41,400 sq.m.), SC Atmosfera (GLA – 30,000 sq.m.), SC Aprel (GLA – 5,800 sq.m), SC Appetite (GLA – 3,420 sq.m.). There was a technical opening of SC Doma Center (GLA – 7,000 sq.m.). Thus, total market supply as of December 2014 was 1,073,939 sq.m. of professional trade areas, having increased by 8%.

Segment of DIY has been actively developing dur-ing 2014. 3rd hypermarket of building materials Leroy Merlin opened in Kyiv, and in the end of the year so did the biggest DIY Epicenter (hypermarket of building materials) with trade area 70,000 sq.m. (on Obolon district).

For the year 2015, 7 new trade and entertaining centers were announced to be opened: Respublika, Blockbuster Mall, Lavina Mall, Podol Mall, Retroville, New Life, SC Doma Center with gross leased area about 474,580 sq.m., which will increase the volume of supply by 31% and will lead to further growth of competition.

Key indices of the trade real estate market of Kyiv city

Market indices 2013 2014 Change

Total supply, sq.m. 1,000,000 1,073,939 +8%

New supply, sq.m.164,420 80,620 -50%

Lowest lease rate, $/sq.m./mo. 30 25 - 17%

Prime lease rate, $/sq.m./mo. 100 80 -20%

Average lease rate, $/sq.m./mo. 70 49.7 - (10-40)%

Vacancy, % 1.7 7.5 + 5,8%

Attendance, people/1,000 sq.m. GLA 945 867 - 9%

Attendance of regional SC, people/1,000sq.m. GLA

530 654 +19%

Attendance of community SC,people/1,000 sq.m. GLA

1,127 937 -16.8%

MAIN SHOPPING CENTERS OF KYIV

Regional SC

Community SC

Neighborhood SC

Big box hypermarket

Specialized SC

Regional shopping centers:1) Dreamtown (1 and 2 st.) - Obolonskyi

avenue

2) Ocean Plaza - Horkoho street, 174

3) Sky Mall – Henerala Vatutina avenue, 2

4) Karavan - Luhova street, 12

Community shopping centers:5) Bilshovyk – Hetmana street, 6б

6) Gulliver – Sportyvna sq.,1 а

7) Marmelade - Borshchahivska street, 154

8) Art Mall - Ak. Zabolotnoho street,37

9) Promenada Center – Baggoutivska

street, 17-21

10) Promenada Park – V. Okruzhna street, 4

11) Gorodok – Moskovskyi avenue, 23а

12)Department store“Ukrayina” – Peremohy

avenue, 3

13) Rayon – Lavrukhina street, 4

14) Arkadiya (Materik-2) – Dniprovska

nab.,10a

15) Magellan – Hlushkova street, 13б

16) Kvadrat – Perova blvd., 36

17) Globus (1,2,3 st.) – Maidan Nezalezh-

nosti, 1

18) Alta Center – Moskovskyi avenue, 15

19) Arkadiya (Materik) – Borshchahivska

street, 154

20) Метрополис – Malynovskoho street, 12

21) Silver Breeze - Dniprovska Nab.

22) Metrograd – V. Vasylkivska street

23) Piramida – Myshuhy street, 4

24) Plazma – Moskovskyi avenue, 20б

25) Alladin – Hryshko street, 3-5

26) Atmosfera- Stolychne shose, 103

27) Arena City – Chervonoarmiyska / Baseina

28) KOMOD – Lunacharskoho street, 4

Neighborhood shopping centers:29) VMB – Peremohy avenue, 136

30) Kvadrat – Hnata Yury street, 20

31) Polyarnyi - Mayorova street, 2

32) Olimpiyskyi - V. Vasylkivska street,72

33) Europort – Lukashevycha street, 15А

34) Interval Plaza - V. Vasylkivska street,143/2

35) Kvadrat – Biloruska street, 2

36) in Silver - Sribnokilska street, 3

37) Darnytsa – Voziednannia avenue,2/1

Specialized shopping centers:38) Detskiy mir – A. Malyshko street, 3

39) Blockbusterr – Moskovskyi avenue, 34в

40) 4 ROOM (furniture) – Petropavlivska

street, 6

41) Arax (furniture) – V. Okruzhna, 110

42) Ultramarine – Urytskoho street, 1А

43) Manufactura (outlet) – Novoobukhivske

shose., 2

44) Diamant (furniture) – Petropavlivska

street,14Е

45) Macros (outlet) – Moskovskyi avenue, 16б

46) Dom mebeli – Druzhby Narodiv blvd.,23

47) B-52 (furniture) – Bratyslavska street, 52

48) Domosfera (luxury) – Stolychne

shose, 101

49) Mandarin Plaza - Baseina street, 4

34 35

REAL ESTATE MARKET • RETAIL

Shopping centers, commissioned in 2014.SC Address GLA, sq.m. Developer Opening

1 Prospect Chervonohvardiyska St /Chervonotkatska St 41,000 Arricano Group Q3

2 Atmosfera 103 Stolychne shose 30,000 De Vision Q3

3 DomaCenrter* Builders St, 40 7,000 KDD Engineering Q4

4 Aprel Kiltseva road/ Les KurbasAve, 19 5,800 Local Developer Q2

5 Appetite 1 Bazhana St 3,420 Ukrainian Investment Alliance Q3

Specialized Shopping centers1 Epicenter 20-D Polyarna St 70,000 Q42 Leroy Merlin 26 Saperno-Slobidska 12,500

Shopping centers, announced to be opened in 2015.

SC Address GLA,sq.m. Developer

1 Respublika Kiltseva road 135,000 K.A.N. Development Q2

2 Lavina Mall Acad. Palladin Ave 127,500 Megaline Q3

3Blockbuster

Mall 36 Moskovskyi Ave 100,000 Megaline Q34 Retroville Pravdy Ave 91,254 Stolitsa Group Q35 New Life Verbytskoho St 15,952 Local Developer Q26 Podol Mall 23 Yelenivska 13,825 Building Invest Group Q27SC Doma Center 40 Builders St 7,000 Q1

Total 474,580 sq.m.

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ATTENDANCEAverage daily attendance of Kyiv Shopping centers by the results of 2014 was: for regional SC 654 people per 1,000 sq.m. GLA, for community SC - 937 people per 1,000 sq.m. GLA. Compared to 2013, average daily attendance in SCs of regional type increased by 19% (530 people per 1,000 sq.m. GLA), while in SCs of community type decreased by 16.8% (1,127 people per 1,000 sq.m. GLA). Redistri-bution of fl ows tells about meaningful competitive advantages of big shopping centers, able to off er the widest range of goods and entertainment.

The highest attendance at the level of 30-40 thou. people on weekdays and up to 60 thou. people on days-off can be seen in SC “Ocean Plaza”, SC “Sky mall”, SC “Dream Town” (1st stage), SC “Karavan”.

VACANCYUnder condition of increased market supply during the years 2012-2014, decreasing plans of development of retail operators, diffi cult economic situation, fall of consumer demand, mid-market level of vacancy in the active shopping centers and shopping and entertaining centers of Kyiv as of the end of 2014 was 7.5%. For some big newly commis-sioned objects the level of vacancy exceeded 50%.

Appearance of vacant areas is even typical for the most successful Shopping centers – SC “Ocean Plaza”, SC “Dream Town” (1st stage), SC “Sky Mall”, traditionally are characterized by full absence of vacant facilities.

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2013 2014Average vacancy of SC in Kyiv city

36 37

REAL ESTATE MARKET • HOTELS

established European tourist destinations, such as Great Britain and Austria as well as the leaders of Mediterranean coastal tourism such as Turkey and Greece. Considering limited quality hotel provision in Kyiv, signifi cant volume of international tourist fl ow indicates strong hotel development potential.

Although 2014 was marked by a whole range of unfavorable factors which resulted in approx. 30% decline of international tourist arrivals we expect renewal of interest to the Kyiv city from the side of international tourists and domestic guests as well as revitalization of the business environment after the situation in the country stabilizes.

OPERATIONAL INDICATORS Defi cit of quality supply on the back of signifi cant demand observed in the Kyiv market during the previous years allowed the hoteliers to set higher prices in comparison with the developed markets while preserving the occupancy at the level of 50-60%. Moreover, even in 2014, the decrease of ADR in the upscale segment was not signifi cant – from $225 on the average in 2013 to about $205 in 2014. However, following the drop in demand for hotel services in 2014, occupancy rates in the upscale segment decreased to 30% (a y-o-y decrease of almost 25 p.p.) As the result, average RevPAR in the upscale segment demonstrated a two-time decrease in US dollar equivalent– from $120 in 2013 to $60 in 2014.

SUPPLYIn 2014 Kyiv market saw only one hotel opening - Hilton Kyiv 5* (257 keys). Currently total stock in the capital is slightly above 10,000 keys in 98 hotels with room provision remaining at a relatively low level - 3.6 rooms per 1,000 residents vs. 5-22 rooms/1,000 residents on the comparable markets of Central and Eastern Europe. Therefore Kyiv mar-ket is characterized by signifi cant growth potential, though not each segment is equally attractive for development.

Over the recent years supply growth was concen-trated mainly in the upscale segment - its share grew from 31% in 2011 to 37% in 2014 in the total supply structure. Moreover, the majority of the pipeline is positioned in the up-scale segment. At

present mid-scale hotels occupy the largest share (48%) in the total supply structure. However, the majority of supply in this segment is represented by physically and morally outdated stock.

Although the interest to the Kyiv market from the side of international hotel operators has been rather high, the share of internationally branded schemes comprises only 20% of the total room stock, but expected to grow within the next 3-4 years.

DEMANDIn 2013 the number of total international arrivals reached approx. 24 million visitors, one third of them visiting Kyiv. This fi gure is comparable with the amount of international arrivals to the

Outdated properties in the mid-scale segment demonstrated a sharper decline of ADR in US dol-lar terms than the up-scale segment - due to the devaluation the average daily rates dropped by approx. 30-50% in US dollar equivalents. As of the end of 2014, ADRs in the mid-scale segment varied in a range of $55-120 (compared to $100-150 in 2013) with quality properties showing more stable performance. Moreover, due to the shift in domes-tic business tourists preferences towards value-for-money proposition quality mid-scale hotels demonstrated 5-7% higher occupancy rates than the market average in the up-scale segment.

OUTLOOKPerformance of the hospitality sector depends on the dynamics of macroeconomic and political environment in Ukraine. We expect revival of the market on the back of the recovery of national economy and revival of tourism sector in the mid-term perspective.

As to the market development potential, we expect the shift in focus of operators, developers and investors to the mid-scale and economy seg-ments caused by low competition and attractive operational indicators demonstrated by the quality schemes. At the same time, taking into account limited volume of pipelined supply, we expect the quality up-scale properties under international brand to perform successfully.

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<2* 3* 4* 5*

HOTELSErnst & Young LLC19A, Khreschatyk Street, Kyiv 01001, Ukraine

Sergii Kekukh, Associate Director, Real Estate Advisory ServicesTel: +380 (44) 490-3029Mob: +380 (67) 473-1618Email: Sergii.Kekukh@ua.ey.com

38 39

in the Greater Kyiv area was however subject to downward correction, and stood at 6.1% by the end of the year.

RENTSThough in 2011-2013 prime asking rents for warehousing and logistics space in the Greater Kyiv area remained generally stable in the US dollar equivalent, by the end of 2014 they decreased by around 30% year-on-year.

In late December 2014, monthly asking rents varied from USD 3 to USD 5 per sq m for prime warehousing space in the Greater Kyiv area.

Prime logistics rents in the Greater Kyiv area are comparable to those registered in the suburbs of Bucharest (Romania) and Krakow (Poland), but lower than in Moscow (Russia), Warsaw (Poland) and Prague (Czech Republic).

Despite suppressed business dynamics in Ukraine, the market-wide vacancy in the logistics property sector in the Greater Kyiv region decreased during the second half 2014 to 6.1% at the end of 2014.

Whilst rents have fallen the continuing absorption of space demonstrates the potential of this market both for development and investment acquisition.

SUPPLYAt the end of 2014, total stock of modern warehousing and logistics space in the Greater Kyiv area amounted to around 1,716,000 sq m (GLA). This figure includes approximately 340,140 sq m (GLA) of modern specialised chilled & frozen and chemical warehousing facilities.

In 2014, around 136,840 sq m (GLA) were delivered on the logistics property market in the Greater Kyiv area. The figure

is in line with the new delivery in the sector during 2013.

In the Greater Kyiv area, the majority of warehousing and logistics properties are located along Kyiv-Zhytomyr Highway (M-06), and in the

location referred to as Kyiv-Moscow Highway (M-01) and Brovary-Boryspil Ring Road.

DEMANDThe demand for warehousing and logistics space in the Greater Kyiv area amounted to around 199,500 sq m (GLA) during 2014, decreasing by 36% compared to the figure registered in 2013, but being almost 37% larger than in 2009.

The demand for quality industrial and logistics space in the Greater Kyiv area in 2014 was traditionally driven by the companies operating in logistics and transportation, FMCG and food retail, as well as pharmaceutical sector, which cumulatively accounted for approximately 63% of total take-up registered during the year.

VACANCYIn the first quarter of 2014, primary vacancy in the logistics property sector in the Greater Kyiv area amounted to 4.7%. During the following three months primary vacancy increased to 10.1% driven largely by the delivery of several relatively sizeable schemes during the second quarter of 2014, during the second half of 2014, primary vacancy in the logistics property sector

OUTLOOKVacancy in the logistics sector in the Greater Kyiv area is forecast to remain below 10% in the short to medium term.

If general economic situation in Ukraine improves, prime rents for quality modern warehousing space in the Greater Kyiv area will be subject to upward correction. Nevertheless, a number of local developers are ready to develop warehouses within built-to-suit contracts at the market rents that prevailed at the end of 2013, and this factor reduces the likelihood of sharp upward correction of rents in the sector.

In the longer term, an increase in commercial activity in Ukraine and resultant strengthening of occupier demand coupled with improvements in Ukraine’s position as a European transportation route may lead to a fall in vacancy and upward pressure on logistics rents in the country.

LOGISTICSManaging DirectorNick Cotton+ 38(0)44 220 30 60nick.cotton@dtz.kiev.ua

REAL ESTATE MARKET • LOGISTICS

Director, Capital MarketsVolodymyr Mysak+ 38(0)44 220 30 60volodymyr.mysak@dtz.kiev.ua

Key industrial and logistics property market indicators for the Greater Kyiv area

2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Annual outlook

Stock (sq m) 1,575,350 1,579,150 1,705,790 1,705,790 1,715,990

New supply (sq m) 139,200 0 126,640 0 10,200

Take up (sq m) 311,380 39,100 44,300 65,780 50,300

Vacancy rate (%) 3.2 4.7 10.1 6.5 6.1 /

Prime rents (USD/ sq m/ month) 5-7 4-7 3.5-6.5 3.5-5.5 3-5 **

Source: DTZ Research *Including ancillary office and mezzanine space** Assuming there is no significant devaluation of the Ukrainian Hryvnya against the US dollar

Source: DTZ Research Note: All figures are period-end.

0510152025

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Vacancy rate (%, RHS)

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24%16%

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M-01 (Kyiv-Moscow), Brovary-Boryspil RR

M-06 (Kyiv-Zhytomyr)

M-03 (Kyiv-Kharkiv)

M-07 (Kyiv-Warsaw)

Kyiv City

M-05 (Kyiv-Odessa)

M-04 (Kyiv-Dnipropetrovsk)

Other

Existing logistics stock split by major locations in the Greater Kyiv area at the end of 2014

Key indicators of logistics property market in the Greater Kyiv

40 41

TOURISM

TOURISM DEPARTMENT CONTACTS:12A Khreshchatyk Street,Kyiv, 01001, UkraineTel.: +38 044 202 60 87Fax: +38 044 202 60 86Email: kyivtourism@gmail.com www.kyivcity.travel

42 43

TOURISM

modern city. Andrew’s Descent is also a must-see attraction which is known for exhibiting and selling paintings and folk art. It is a meeting place of folk masters, modern Ukrainian artists, and creative young people.

Upscale shoppers need to cruise Kreshchatyk Street, Kyiv Passage, and Chervonoarmiiska Street, while any tourist itinerary must include St. Sophia Cathedral, St. Michael’s Cathedral, Kyiv-Pechersk Lavra, and National Museum of the History of Great Patriotic War. Those who are interested in the Revolution of Dignity and the latest events hap-pened in Kyiv in 2014, professional tour guides will guide you around the major sites including Maidan Nezalezhnosti (Independence Square).

In the warm months, a boat trip along the Dnipro River will make a nice break in the mapping route. Nothing will help relax better than enjoying beauti-ful Kyiv scenery. During the trip city guests will see the historical sightseeing points of the city known throughout the world. A boat trip can be booked directly at Kyiv River Port.

At nighttime, the choice of theatres, clubs and mu-sic venues is positively bewildering. Theatres of Kyiv off er diverse repertoire for every taste. Among the leading theaters must be mentioned, for example, National Opera of Ukraine, National Academic Drama Theatre of Ivan Franko, National Academic Theater of Drama of Lesia Ukrainka. Kyiv can off er to visit the National Philharmonic of Ukraine and Kyiv National Operetta Theatre for fans of musical genres. There are large and small theaters studios that diversify the theatrical life of the capital.

Those who are pressed for time may book a hop-on hop-off bus tour “City Sightseeing Tour” which will give the opportunity to see all city hot spots from the best perspective.

Kyiv is a city which warmly invites tourists to experi-ence its unique atmosphere and uncover its hidden secrets.

It has a lot to off er. No matter what your passion, the City of Kyiv can satisfy any appetite.

It distinguishes itself from other cities by combin-ing the tranquil and charming atmosphere of the ancient city with the dynamic, energetic bustle of a modern business capital.

However, Kyiv is not only a modern metropolis, but a hospitable, open and European city. Kyiv residents who are known for their hospitality, zest for life and kind treatment will obviously welcome you in the city.

BUSINESS OPPORTUNITIES If you look for business opportunities, Kyiv is a good place for strong start and development of business relations. Being just some 2 hours fl ight from Western European business centers, the city off ers great variety of options to hold conferences and business events. All information about MICE tourism you can fi nd in Kyiv Meeting Planners’ Guide available for download on kyivcity.travel

INFRASTRUCTURE Moreover, the city has a well-developed infrastruc-ture that can fully satisfy city visitors. Kyiv has got two international airports. Boryspil International Airport (KPB) is the busiest airport in Ukraine, locat-ed within 18,5 km from Kyiv. It is easy to get to the city center by Sky Bus which provides passengers with a direct, cost-eff ective way of getting from the airport. International Airport “Kyiv” Zhuliany (IEV) is

Extreme lovers should book a tour to Chornobyl and a ghost city Prypiat. They will get information about exclusion zone and Chornobyl nuclear power plant, fi nd out more about new areas of work and projects that are carried out in the exclusion zone by scientists.

COSSACKS – UKRAINIAN SAMURAIS To feel Ukrainian spirit and atmosphere, one should visit Mamajeva Sloboda, an authentic cultural com-plex that reproduces Cossack’s settlement of 17th-18th century. During large national and religious holidays it hosts large-scale folk festivities. The museum also organizes theme tours on a regular basis. Most of them are educational and interac-tive: visitors have an opportunity to try on national Ukrainian costumes, watch Cossack’s shows, salute with Cossack cannon, learn bell-ringer’s art and more.

ANCIENT KYIV What is more, in Kyiv any tourist can plunge into the Medieval times while visiting the Kievan Rus Park, a unique reconstruction of the Ancient Kyiv of the 5th-13th centuries. Spectacular shows and performances, battles of knights, traditional music and authentic cuisine will allow everyone to feel the atmosphere of the ancient city. Moreover, the park off ers horse riding and hot air balloon fl ights.

conveniently located within the city limits allowing the city visitors to get to the necessary district within a short time.

ACCOMMODATION ESTABLISHMENTS

At present, there are more than 165 hotels and inns within Kyiv. Business and leisure travellers are able to fi nd accommodation which will fully meet their requirements and expectations: from luxury hotels to cheap hotels and hostels, and even apartments. In the stylish interiors of Kyiv hotels, guests will be off ered high-quality services which will make them feel cared for, valued and respected. Lots of city ho-tels also feature fi tness studios, spas, health centers and swimming pools. You can book and fi nd the best deals on city’s accommodation establishments on kyivcity.travel

CUISINE Kyiv is also one of the best dining destinations. Ukrainian national cuisine, famous for its diversity, has hundreds of dishes, many of which are known and enjoyed beyond the boundaries of Ukraine: chicken Kyiv, borshch, varenyky, salo, deruny, Kyiv cake, holubtsi, and krychenyky. Kyiv is famous for various restaurants which off er dishes of Ukrainian and international cuisines. In addition to sit down restaurants, there are fast food eateries, coff ee shops and bars that cater to all tastes.

WHAT TO DO IN KYIV For tourists, the city presents an array of opportuni-ties that will more than satisfy any interest. Art lov-ers should visit art centers, galleries, and museums which represent diff erent styles and genres of the

44 45

TOURISM

The majority of travellers use Internet to plan their holiday or business trip. Therefore, Consortium “Kyiv Tourism” is increasingly developing and improving its tourist website www.kyivcity.travel to satisfy the changing consumers’ needs, and thereby to achieve its marketing and business goals. The offi cial tourism portal of the city of Kyiv www.kyivcity.travel has much to off er start-ing from up-to-date offi cial travel information, information on attractions, restaurants, shopping, nightlife, maps, itineraries and lots of other useful tips how to get the best from the trip to the capital of Ukraine.

www.kyivcity.travel is available in 4 languages (English, German, Ukrainian and Russian) and fea-tures an extensive online booking system Feratel, where every traveller can choose and book hotel, tour or excursion.

CONVENTION CENTER Kyiv has what it takes to become a brand-new and trendy business destination in the following years. Being in the heart of Europe, the city off ers a great variety of unique options for conducting diff erent business events, sightseeing and entertaining.

Recent success in delivering the football champion-ship Euro-2012 showcased Kyiv to the world and proved its ability to carry out large-scale interna-tional events.

Kyiv features more than 3000 companies in the travel industry, about 300 hospitality establish-ments, numerous exhibition and congress centers, more than 30 business centers, world class stadi-ums and contemporary shopping centres. The city provides unbeatable value, since its wide variety of venues, types of accommodation and activities off er something to suit every budget and taste.

WHO WE ARE Consortium “Kyiv Tourism” was founded in July 2014 as a public-private joint initiative of the Tour-ism Department of Kyiv City State Administration and representatives of Kyiv’s tourism business (like DMCs, PCOs, hotels, media, fashion and retail com-panies). Consortium seeks to create a favourable operating environment for all businesses within tourism sector in Kyiv and thus with joint eff orts to communicate Kyiv’s reputation as a world-class city in which to live, work, study, invest and visit.

Added to this is Kyiv peerless heritage: everyone is invited to explore 1500 years of dazzling living his-tory, including ancient fortresses, parks, fascinating museums and galleries.

Consortium’s convention and meeting profes-sionals have created the ultimate event planning resource – Kyiv Meeting Planners Guide .This comprehensive guide provides one-stop shopping for meeting, convention and trade show planners. It highlights facilities and services to ensure suc-cessful business meetings.

CONSORTIUM “KYIV TOURISM” CONVENTION DEPARTMENT’S SERVICES: • Free, impartial advice;

• Bid assistance;

• Full venue fi nding service;

• Comprehensive planning toolkit.

Kyiv is a vibrant world city where businesses cannot help but feel motivated and inspired. Consor-tium “Kyiv Tourism” can unlock this city for your business, working with you from bid to closing night gala.

Everything start in Kyiv, so start your business here today with Consortium “Kyiv Tourism”.

OUR MISSION Consortium’s mission is to promote the city of Kyiv as an attractive tourist destination. Thus we encour-age everyone to cooperate, exchange knowledge, best practices and widen network to perform even better to strengthen the international image of Kyiv. Consortium is committed to advocating, pro-moting, developing and sustaining the economic wellbeing of the tourism industry in Kyiv.

CONSORTIUM “KYIV TOURISM”

46

INVESTMENT PROJECTS

INVESTMENT PROJECTS • KIEV INVESTMENT AGENCY

This time a year ago, the City of Kyiv underwent a resounding transformation. Hundreds of thou-sands of protestors descended on our central square in frustration with the direction Ukraine was headed. Some felt strongly Ukraine should join the EU – others simply wished for a prosper-ous country free from corruption.

Reform and anticorruption became popular top-ics among politicians in Kyiv. A year after the Rev-olution of Dignity, as Ukrainians now remember it, skeptics began to claim the new government

is all talk and no action. Mayor Vitali Klitschko, whose record as a world champion in the ring and as a businessman in Germany speaks for itself, decided to stop talking and do.

The Mayor’s first concrete reform success was a total revamp of the investment process under the banner of Kyiv Investment Agency, a city of-fice with the both the financial and project-level expertise able to structure deals, improve credit worthiness and attract investor interest, making it into a sort of in-house investment bank for the

OLEG MISTIQUEGeneral Director

KIEV INVESTMENT AGENCY

municipality. With significant help in process de-sign and best practices from Big4 consulting, we redesigned the way Kyiv does business from start to finish. As a two-time World Bank veteran and Boston MBA, I am confident our city is emerging as transition success story.

Kyiv Investment Agency is now the single window for all business with the city. Having a single and transparent point of contact between investors and the city eliminates the opportunity for middlemen or dishonest brokers. Our office in City Hall is completely enclosed in glass. That’s not just showcasing – under our new Open Office policy, anyone can walk into the building and see who we’re meeting.

Institutional reform is a cumbersome process. We’re in the process of developing a straightfor-ward 90-day investment project approval process that will put us on par with many other European countries. But truthfully, today, the investor will still find some intimidating bureaucracy.

You no longer have to face it alone. For all ap-proved investment projects, Kyiv Investment Agency has a team of 50 specialists in sectors like real estate, energy effectiveness and IT smart cities, who are ready to manage your project from the city’s side, helping you to navigate the system and – when needed – acting as your advocate with me or the Mayor himself.

We’re also online. On our website, www.inves-tinkyiv.org, you can find a complete list and details, in English, Ukrainian or Russian, of all city investment projects. In the past, this information was a closely guarded secret. Today, our policy is public access.

Kyiv is Ukraine’s pilot city for e-governance. We were the first city to install an online procure-ment system for purchase orders. We have also begun the process of automating the municipal-ity’s budget. It’s a lot of work, but we hope to have online access to some public expenditures in the next 6 months. In parallel, we’re working to provide the public with a first-ever prototype of a Municipal financial report for 2014.

For years neglected, Kyiv is brimming with socially significant projects that can improve the standards of living and return significant margins to the investor. We have already achieved our first results, 100 million hryvnia investment in a state-of-the-art WiFi system for the metro. Some 850 million hryvnia in signed real estate deals. Our city has over 11 million square meters of real estate – and only 10% of that is currently leased. With strategic guidance from IFIs and donors, we’re planning revamps of our municipal services like waste management, parking and transporta-tion.

Potential awaits. Come get to know the new Kyiv.

11-A, Tereshchinkivska Str., 01004, Kyiv, UkraineTel../ Fax: +38 044 289-53-51e-mail: info@kp-kia.kiev.ua

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INVESTMENT PROJECTS • REAL ESTATE

Kyiv authorities actively implement tools for openness policy in urban development, therefore, increase confi dence in the urban community, reduce bureaucratic costs when making decisions and create conditions for investors. One of the most eff ective tools is the urban cadastre.

Creating urban cadastre of Kyiv is regulated by Decree of the Cabinet of Ministers of Ukraine ‘On urban cadastre’ from 25.05.2011 and the decision

of the Kyiv City Council ‘On approval of the city target program of the creation and implementa-tion of urban cadastre of Kyiv for 2013-2015’ from 20.09.2014.

The aim of formation urban cadastre is to create open electronic database in urban planning sphere, to automate cadastre and to simplify interaction of the authorities between themselves and with citizens, to respond quickly to users’ requests and

URBAN CADASTRE OF KYIV

to create and deliver planning documentation. Accordingly cadastre provides an answer to a number of signifi cant challenges that the modern city facing with. This is the necessity for continuous updating of data about urban activity, execution the master plan and exercise an effi cient control of community over city development.

Implementation of the urban cadastre corresponds to the transition to the post-industrial stage of the economic and social development, which is characterize by automation of the exchange of in-formation, improving the quality of public services and the creation of conditions to supervise the government by civil society. In broad perspective cadastre is one of the most important element of the e-government, which is essential for a modern democracy.

The urban cadastre is a developing system. From the 1st of June in 2013 a geo-informational portal began to work. It gradually replenished online with services that are available and useful for specialists and citizens. Today cadastre is based on updated in 2013 topographic base and contains more than 10 layers, in particular – information about city green zones, objects of cultural heritage, lands and social institutions. Furthermore, the portal provides access to information about the citywide projects and programs, street register and complex layout of temporary structures. It helps to receive output data for planning and permits related to construc-tion. The urban cadastre allows working with few databases at the same time. It makes processing requests faster, so that saves time and recourses.

The process of improvement technical platform of the cadastre and providing data security is continu-

ing. In plans for 2015 is to develop a unifi ed system of electronic document exchange, to implement in-formation security system, to expanse geo-informa-tion system functionality by adding new services, to continue terrestrial laser scanning for creating new databases of the facilities improvement.

The process of development the urban cadastre is open to the community and stakeholders. The cadastre was presented by the central authorities. Scientifi c workshops, press conferences and public discussions were held to induct it. On these meet-ings we understood that society is interested in ex-pansion of the cadastre possibilities. For example, a new layer with the information about fi nancing urban objects and areas under the program of socio-economic development of the capital was added by the civic activists initiative.

Opening the information about city as a complicat-ed system allows minimizing risks for the potential investors, because they can ‘see’ and estimate all features of territory or object (planning restrictions, the status of the object, development of social infrastructure around, etc.) Such information could make a building process cheaper, a quality of plan-ning documents higher and eliminate corrupt acts.

As a result, the urban cadastre provides sustainable city development in strict compliance with the rules based on the three main principles: conve-nience, predictability and trust.

18 Lavrska StreetKyiv, Ukraine 01015(044) 281-0-281

Web site: www.udp.uae-mail: media@udp.uaFacebook: facebook.com/udp.ua

52 53

Kyiv has a unique recreation potential situated in the very center of the capital - coastal area of the Dnipro River (embankments, coastal areas, right bank slopes of Dnipro River), numerous islands and 8500 hectares of total area.

Today this unique and valuable territory is not developed enough.

The Strategy of Kyiv development till 2025 (accepted in 2011) determines 9 strategic initiatives, one of them is to save and develop coastal water areas of Dnipro River and its islands. This strategic initiative is named ‘Dnipro Pearl’.

The strategic initiative ‘Dnipro Pearl’ includes territories of 34 islands, which are neglected

STRATEGIC INITIATIVE ‘‘DNIPRO PEARL’’

and develop randomly. Kyiv islands have an enormous recreation potential. Parks, zoological and nature reserves are situated there. Single part of territory may be subjected to urban development considering their special status.

To develop this strategic initiative Kyiv City State Administration held 2 international competitions – ‘Open international competition ‘Improvement of the Kyiv central part for Euro 2012 and for the future’ and ‘Open international competition for the best urban planning concept of conservation and development of Kyiv islands as sustainable ecosystems water-green recreational diameter of Kyiv “Dnipro Pearl”. There are winners of competitions: architectural firm Taller 301 / CO, and Wolf House production + Gabriel Pascariu / RO.

Nowadays Kyiv City State Administration develops ‘The general concept of renovation of Dnipro River valley, including islands and slopes, which have to determine specific steps to the sustainable development of these areas.

‘The General concept’ should offer a solution for the preservation of natural, historical and cultural heritage situated on the territory of these islands; solving these problems of ecology, especially of hydrodynamics, ecology and hydrogeology of Dnipro River and adjacent waters; a development of urban, social and cultural significance, transport infrastructure of territory, natural landscape complexes and waters, public service infrastructures and tourism.

Kyiv actively involves international experience to realize it efficiently. The International Expert Council and the Civic Council (to involve the

community in decision-making) was established as the part of initiative.

Conservation and development of territories, covering strategic initiative “Dnipro Pearl” will take place at the expense of the city budget, funds of individuals and entities, and other sources not prohibited by the legislation of Ukraine.

Investment activities in strategic initiative “Dnipro Pearl” is based on the principles of socially responsible investment, which is the basis for sustainable territorial development.

Socially-responsible investment is a promotion of responsible business practices that benefit business and help to achieve economic, social and environmental sustainable development through the maximization of the positive impact of business on society while minimizing its negative effects.

The strategic initiative ‘Dnipro Pearl’ is long-term and designed for the period from 2012 till 2025.

The official website of the strategic initiative “Dnipro Pearl’http://dp.kga.gov.ua/uk/ dneaper.pearls@gmail.com

http://dp.kga.gov.ua/uk/ dneaper.pearls@gmail.com

INVESTMENT PROJECTS • REAL ESTATE

54 55

INVESTMENT PROJECTS • REAL ESTATE

PROJECT’S DESCRIPTIONME “Kyiv investment agency” obtained all required permits and urban limits for the private kindergar-ten construction. The land plot is 2,2 ha (5,43 acres). The 3 stores building was designed. The GBA is 3,500 sq.m.

ADDRESS10-V Heroiv Stalingrada str., Kyiv, Ukraine

LOCATIONThe project`s land plot is located in the residential-commercial area neighboring to the business class residential complexes. The proximity to the public transport – 5 minutes walk to the trolleybus station, 10 minutes walk to the metro.

PROJECT’S PARAMETRESLand plot – 2,2 ha (5,43 acres)GBA – 3,500 sq.m

PROJECT’S DESCRIPTIONME “Kyiv investment agency” obtained all required permits and urban limits for the private kindergar-ten construction. Total area of the land plot is 0,6 ha (1,48 acres). The 2 stores building was designed. The GBA is 2,000 sq.m.

ADDRESS7-A Kudriashova str., Kyiv, Ukraine

LOCATIONThe project`s land plot is located in the residential area in the middle of the quarter neighboring the recreation area named “Solomianskyi park”. The prox-imity to the public transport – 10 minutes walk to the trolleybus station, 15 minutes walk to the metro.

PROJECT’S PARAMETRESLand plot – 0,6 ha (1,48 acres)GBA – 2,000 sq.m

PRIVATE SCHOOL CONSTRUCTIONon 10-V Heroiv Stalingrada street in Kyiv

PRIVATE KINDERGARTEN CONSTRUCTIONon 7-A Kudriashova street in Kyiv

56 57

INVESTMENT PROJECTS • REAL ESTATE

PROJECT’S DESCRIPTIONME “Kyiv investment agency” obtained all required permits and urban limits for the private kindergar-ten construction. Total area of the land plot is 1,1 ha (2,7 acres). The 2 stores building was designed. The GBA is 3,000 sq.m.

ADDRESSPlot 32, Pozniaky-8 district, Kyiv, Ukraine

LOCATIONThe project`s land plot is located in the residential area in the middle of the quarter. The proximity to the public transport – 5 minutes walk to the trol-leybus station, 10 minutes walk to the metro.

PROJECT’S PARAMETRESLand plot – 1,1 ha (2,7 acres)GBA – 3,000 sq.m

PROJECT’S DESCRIPTIONME “Kyiv investment agency” is developing the project. The upscale/upper upscale hotel was designed. The total area of the land plot is 0,54 ha (1,33 acres). There is existing municipal building on the land plot with GBA 10,000 sq.m, which is proposed to be reconstructed.

ADDRESS3-A Borysa Grinchenka str., Kyiv, Ukraine

LOCATIONThe project`s land plot is located in the commercial area neighboring to the main city square “Maydan”. The proximity to the public transport – 2 minutes walk to the bus station, 2 minutes walk to the metro.

PROJECT’S PARAMETRESLand plot – 0,54 ha (1,33 acres)

Building to be reconstructed, GBA – 10,000 sq.m.

PRIVATE KINDERGARTEN CONSTRUCTIONon Pozniaky-8 district in Kyiv

HOTEL COMPLEX CONSTRUCTIONon 3-A Borysa Grinchenka street in Kyiv

58 59

INVESTMENT PROJECTS • REAL ESTATE

PROJECT’S DESCRIPTIONME “Kyiv investment agency” is developing the project. The midscale/upper midscale hotel with trade center on the ground fl our was designed. The total area of the land plot is 1,52 ha (3,75 acres).

ADDRESS19-A Electrykiv str., Kyiv, Ukraine

LOCATIONThe project`s land plot is located in the commercial area on route along the river from residential area towards the city center. The proximity to the public transport – 15 minutes walk to the bus station, 15 minutes drive to the city center.

PROJECT’S PARAMETRESLand plot – 1,52 ha (3,75 acres)

PROJECT’S DESCRIPTIONUp to 220 ha (543 acres) undeveloped area is being developed by Kyiv City State Administration as an industrial hub. The project`s idea is to contribute to the new facilities construction for light industry, pharmacy, recycling, energy effi ciency, logistic, sci-entifi c and other sectors possible to be developed in the industrial park. Industrial park – is the part of industrial hub and has municipal tax preferences.

ADDRESSPukhivska str., Kyiv, Ukraine

LOCATIONThe project`s land plot is located in the commercial area neighboring to the main city square “Maydan”. The proximity to the public transport – 2 minutes walk to the bus station, 2 minutes walk to the metro.

PROJECT’S PARAMETRESLand plot – 220 ha (543 acres) industrial – 63 ha (155ac.) offi ces, science – 28 ha (69ac.) commercial – 66 ha (163ac.) residential – 11 ha (27ac.) recreation – 50 ha (123ac.)

HOTEL AND TRADE COMPLEX CONSTRUCTIONon 19-A Electrykiv street in Kyiv

INDUSTRIAL HUB “KYIV BUSINESS HARBOR”on Pukhivska street in Kyiv

24

1

3

3

2

60 61

INVESTMENT PROJECTS • REAL ESTATE

PROJECT’S DESCRIPTIONME “Kyiv investment agency” obtained all required permits and urban limits for the offi ce building to be constructed. The building plot area is 1,100 sq.m., the total area of the land plot is 0,23 ha (0,56 acres). The 18 stores Grade “B” offi ce building with underground parking was designed. The GBA is 20,000 sq.m. As well there is an opportunity and a possibility to change the purpose of the building from offi ce to apartment house.

ADDRESS2-A Levanevskogo str., Kyiv, Ukraine

LOCATIONThe project`s land plot is located in the residential-commercial area neighboring the new trade cen-ters and the biggest in Kyiv polytechnic campus. The proximity to the public transport – 5 minutes walk to the light rail, 15 minutes walk to the inter-urban train.

PROJECT’S PARAMETRESLand plot – 0,23 ha (0,56 acres)Building plot – 1,100 sq.mGBA – 20,000 sq.mNumber of fl ours – 18

PROJECT’S DESCRIPTIONME “Kyiv investment agency” is developing the proj-ect. The project was designed as residential complex with all territory bordering by the quarter only for pedestrian use, the concept also known as city-park. The total area of the land plot is 43,6 ha (107 acres). The GBA of the complex is 525,000 sq.m.

ADDRESS10 Glushkova ave., Kyiv, Ukraine

LOCATIONThe project`s land plot is located in the residential-commercial area neighboring to the National exhibition center with park zone and to the biggest trade center “Respublica”. The proximity to the public transport – 3 minutes walk to the metro and trol-leybus station.

PROJECT’S PARAMETRESLand plot – 43,6 ha (107 acres)GBA – 525,000 sq.mCommercial premises – 8,600 sq.m

OFFICE BUILDING CONSTRUCTIONon 2-A Levanevskogo street in Kyiv

RESIDENTIAL COMPLEX CONSTRUCTIONon 10 Glushkova avenue in Kyiv

62 63

INVESTMENT PROJECTS • REAL ESTATE

PROJECT’S DESCRIPTIONME “Kyiv investment agency” is developing the project. The project was designed as residential complex. The total area of the land plot is 2,16 ha (5,33 acres). The GBA of the complex is 60,000 sq.m.

ADDRESS23 Kudriavska str., Kyiv, Ukraine

LOCATIONThe project`s land plot is located in the residential-commercial area. The proximity to the public transport – 5 minutes walk to the trolleybus station, 5 minutes drive to the city center.

PROJECT’S PARAMETRESLand plot – 2,16 ha (5,33 acres)GBA – 60,000 sq.m

PROJECT’S DESCRIPTIONME “Kyiv investment agency” is developing the project. The project was designed as economy/comfort residential complex. The total area of the land plot is 1,1 ha (2,71 acres). The GBA of the com-plex is 36,500 sq.m.

ADDRESS7-9 Poryka str., Kyiv, Ukraine

LOCATIONThe project`s land plot is located in the residential area. The proximity to the public transport – 5 minutes walk to the trolleybus station.

PROJECT’S PARAMETRESLand plot – 1,1 ha (2,71 acres)GBA – 36,500 sq.m

RESIDENTIAL COMPLEX CONSTRUCTIONon 23 Kudriavska street in Kyiv

RESIDENTIAL COMPLEX CONSTRUCTIONon 7-9 Poryka street in Kyiv

64 65

INVESTMENT PROJECTS • HEALTH

PROJECT’S DESCRIPTIONME “Kyiv investment agency” is developing the residential complex construction project. The land plot is 5,66 ha (14 acres). The project was designed as residential complex with all territory bordering by the quarter only for pedestrian use – concept also known as city-park. The GBA of the complex is 180,000 sq.m

ADDRESS22 Vasylkivska str., Kyiv, Ukraine

LOCATIONThe project`s land plot is located in the residential area neighboring to the recreation area named Holosiivskyi park. The proximity to the public trans-port – 3 minutes walk to the bus station, 5 minutes walk to the metro.

PROJECT’S PARAMETRESLand plot – 5,66 ha (14 acres)GBA – 180,000 sq.m

RESIDENTIAL COMPLEX CONSTRUCTIONon 22 Vasylkivska street in Kyiv

Health Care System

The fi rst stage of private medicine market develop-ment in Kiev began in 1992. The second wave fell down in the second half of the 2000s, and focuses mainly on the premium segment. Demand for aff ordable quality services remained unsatisfi ed, that was the start of development for the middle segment and the emergence of a large number of private medical clinics in diff erent fi elds over the last 7 years.

Considering that Kiev has become a pilot region for the health care system reform over the last two years, demand for mid-priced segment is essential. It becomes more actual especially in the context of political and economic instability. This is mainly private medical centres that focus on providing consultations of specialists, diagnostic and treat-ment services. And the less number of clinics that provide emergency services, surgery and intensive care. There are general health, as well as special-ized among them. The highest demand is for “traditional” fi elds of private medicine - urology / gynecology, dentistry, ophthalmology, traumatolo-gy, plastic surgery. It is actively growing segment of reproductive medicine, particularly the treatment of infertility in recent years. Future direction for the developing of the next 5-7 years are segment of transplantation, rehabilitation medicine, medical tourism and e-Health.

Private medicine investments in Kiev are attractive as already defi ned the strategic direction of the Health Care System. There is also an increasing of population in the capital during the last year, but the government does not invest money in Health Care System at the appropriate level for its develop-ment. According to experts, the market of private medicine is growing steadily in recent years - at the level of 10% in money equivalent. And this is very important because a positive retrospective dynam-ics predicts more confi dent future prospects for the medical market.

INVESTMENT PROJECTS • REAL ESTATE

66 67

INVESTMENT PROJECTS • HEALTH

PROJECT’S DESCRIPTIONME “Kyiv investment agency” obtained all required permits and urban limits for the medical center to be constructed. The total area of the land plot is 0,64 ha (1,58 acres). The 3 stores medical center building was designed. The GBA is 4,200 sq.m.

ADDRESS2 Chervonozorianyi ave., Kyiv, Ukraine

LOCATIONThe project`s land plot is located in the residen-tial-commercial area in the territory of Kyiv City Maternity Hospital #5. The proximity to the public transport – 3 minutes walk to the bus station, 10 minutes drive to the Kyiv airport.

PROJECT’S PARAMETRESLand plot – 0,64 ha (1,58 acres)GBA – 4,200 sq.mNumber of fl ours – 3

PROJECT’S DESCRIPTIONME “Kyiv investment agency” obtained all required permits and urban limits for the medical center to be constructed. The total area of the land plot is 0,57 ha (1,4 acres). The 10 stores medical center building with underground parking was designed. The GBA is 13,200 sq.m.

ADDRESS3 Zoologichna str., Kyiv, Ukraine

LOCATIONThe project`s land plot is located in the recreation area in the territory of Kyiv City Clinical Hospital #14. The proximity to the public transport – 5 minutes walk to the bus station, 15 minutes walk to the metro.

PROJECT’S PARAMETRESLand plot – 0,57 ha (1,4 acres)GBA – 13,200 sq.mNumber of fl ours – 10

MEDICAL CENTER CONSTRUCTIONon 2 Chervonozorianyi avenue in Kyiv

MEDICAL CENTER CONSTRUCTIONon 3 Zoologichna street in Kyiv

68 69

INVESTMENT PROJECTS • ENERGY SAVINGS AND WASTE MANAGEMENTINVESTMENT PROJECTS • IT

Cities are the main engine of economic development, a source of innovation and new opportunities.

The modern world requires dynamics and prompt decisions, so the big city lifestyle moves to the mode of «smart».

«Smart City» – is providing a modern quality of life through the use of innovative technologies which provide cost-eff ec-tive and environmentally friendly use of urban systems of life.

Technologies play crucial role in the implementation of initiatives to create a «smart cities» and therefore the choice of «long-playing» technologies in the design of «smart city» - the key to the project effi ciency in the long term.

Diff erent cities put diff erent priorities and objectives, but all the «smart cities» have the three most important features. The fi rst - the presence of ICT (Information and Communica-tion Technologies) infrastructure. Secure of ICT infrastructure of subsequent generations is essential to the successful deliv-ery of new services in «smart» cities and to anticipate future demand for new services. The second – clearly built and inte-grated management system must be established in the city. Numerous systems of «smart» cities will act in a coordinated only in strict compliance with the same standards. The third – a «smart» city should have «smart» users. «Smart city» should not only increase access to «smart» devices for all categories of people with diff erent income levels and of diff erent age groups, but also provide access to training to work with these devices. The basis of the «smart city» is the users’s network, which is opened to all users of ‘smart’ devices, so the citizens can require or create services that are of most value to them.

TO CREATE A «KYIV-SMART CITY» CITY HAS IDENTIFIED THE FOLLOWING CHALLENGES:1. Solution of city management:- Construction of the dispatching center- Establishment of the emergency management center - Create a video surveillance system2. Solution of infrastructure management:- Creating Urban Data Center- Creating a parking management system- Creation of automated transport management system- Installation in “smart» traffi c lights3. Solutions for the management of social services

for citizens:- Creation of the «e-ticket»- Installation of «smart bus shelters»

The city of Kiev has a great energy potential. Signifi -cant volumes of production and consumption of heat and electricity of the city, with a population of more than 3 million people and more than a hundred large companies create a great resource for the develop-ment of renewable energy and energy effi ciency.

Developed, covering more than 80% of consumers the city district heating network brings together the larg-est thermal power plants and local boiler provides the basis for the existence of an open market of thermal energy with good value for money, cost-eff ective and environmentally friendly production.

Kiev faces the current challenges in the form of large heat losses, low energy effi ciency of buildings, high power intensity and gas dependence of heat and elec-tricity production. As a response to these challenges, the city of Kiev is developing a program of thermo modernization of municipal and residential build-ings in the city (ESCO - contracts), the introduction of renewable energy sources for electricity and heat production, modernization and automation of heating network. Development program and tariff policy of the city makes attractive the investments in energy projects in Kiev.

Through the increasing energy effi ciency of buildings and the introduction of renewable energy Kyiv city improves the quality of life, reduces CO2 emissions and improves energy security of the city.

Automation of heating network

KIEV SMART CITY. MODERN TECHNOLOGIES AND SOLUTIONS

MUNICIPAL ENERGY DEVELOPMENT OF KIEV

Heating network. Regulation and control

Thermo modernization ESCO

Automation of heating network

Free market of heat Free market of heat

71

INVESTMENT PROJECTS • ENERGY SAVINGS AND WASTE MANAGEMENT

EMERGING TRENDS IN SUSTAINABILITY

Green building is far from being a mass-market trend in CIS countries, however awareness of energy efficient buildings increases exponen-tially: the number of BREEAM and LEED certified projects in CIS countries has grown rapidly from only two schemes seen in 2010 to 43 certifica-tions in Russia, 2 certifications in Ukraine and 1 certification in Kazakhstan by the end of Q3 2014. In 2013 alone the number of certified buildings increased by 22, in 2014 by 16. Around 60% of these certified assets are prime grade of-fices, yet the total “green” office stock accounting for negligible 3% of total office stock in capitals of these countries.

Experts see this rapid acceleration in “green” certi-fi cation as a result of combination of a few factors, like changes in environmental regulations, growing demand for green offi ces, brand recognition and the opportunity to benefi t from cost effi ciency in the future.

The new Ukrainian government and Parliament actively promote the development of energy-effi cient construction, preparing a draft law “On the energy effi ciency of buildings”, which will adapt the provisions of the DIRECTIVE 2010/31/EC OF THE EU-ROPEAN PARLIAMENT AND OF THE COUNCIL of 19 May 2010 on the energy performance of buildings.

GROWING DEMAND FROM TENANTS

For emerging offi ce markets buildings with LEED and BREEAM certifi cates are demanded by international companies. For many multinational companies with established sustainability policies, such as Siemens, Decathlon, Shell or Deutsche Bank, meeting ecological standards could be a key factor for choosing offi ce premises.

FUTURE COST EFFICIENCY

“Green” buildings are expected to bring reduced costs for resource consumption. According to some estimates, cost savings on utility bills can be up to 30%. However, the capital cost of Green building on emerging markets remains high due to the small number of certifi ed buildings.

SUSTAINABLE ACHIEVEMENTS OF JLL

In 2013-2014 JLL:• Completed over 283 LEED® and BREEAM® projects totaling more than 70 million square feet• Had 1518 Accredited Professionals across our global business• Platinum member of US Green Building Coun-cil (USGBC) and Russian Green Building Council (RuGBC), Founding member of Kazakh Green Build-ing Council• Put into operation the alternative energy sources with total capacity of more than 0.1 MW. Is devel-oping and installing another 3525 MW.

WHY CHOOSE JLL• Experience and result driven team - certifi ed 18 LEED® and BREEAM® projects in Russia andCIS countries of total area more than 650,000 sq m over past 3 years• In 2013 had certifi ed the fi rst in Ukraine LEED project – Shell offi ce in Kiev, in 2014 had certifi ed the fi rst BREEAM project in Azerbaijan – Baku White City offi ce center and the fi rst BREEAM In-Use proj-ect in Singapore – Chevron Tower • Established reputation – in Russian and interna-tional Green building arena• Innovation – always seek for new solutions• Start with ourselves - the fi rst company which has achieved both BREEAM (Good) and LEED (Gold) certifi cates for its offi ce in Moscow Headquarters.

72 73

What should be done with solid waste in Kiev?

10%recycling

85%thermal waste processing

5%landfilling

70 MW/h 130 Gcal/h

Investments in waste collection:

• Refurbishment of containers places and changing of containers 17 millions Euro

• Modernization of waste trucks fleet18 millions Euro

TOTAL INVESTMENTS AMOUNT: 35 millions Euro

Investments in waste utilization:

• Construction of waste processing capacities 500 millions Euro

• Refurbishment of existing incineration plant 70 millions Euro

TOTAL INVESTMENTS AMOUNT: 570 millions Euro

POTENTIAL ANNUAL INCOME:

• Revenue from waste collection 0,84 millions Euro • Revenue from raw materials sales

10 millions Euro • Income from electricity supply

24 millions Euro • Income from hit supply

10 millions Euro

Total amount of incomes: 44,84 millions Euro

How much solid waste does Kiev form?

How is waste being collected in Kiev?

1,2 millions t pa

What is actual way of waste utilization in Kiev?

Landfilling Incineration

Recycling

Equipment:

• Container 1,1m3 - 26 000 pcs • Waste trucks - more 200 units • Container 1,1m3 for pre-sorted waste -

3 000 pcs

Containers fleet wear is up to 50%

Average age of waste trucks >12 years

Actual utilization capacities: • Landfill №5: 0,36 millions t pa • Landfill №6: 0,10 millions t pa • Waste incineration plant 0,24 millions t

pa • Illegal dumps around the city 0,44

millions t pa

INVESTMENT PROJECTS • ENERGY SAVINGS AND WASTE MANAGEMENT INVESTMENT PROJECTS • TRANSPORT

SUSTAINABLE URBAN TRANSPORT FOR THE CITY OF KYIV

City of Kyiv, the 8th largest city in Europe, is endowed with various public transport modes, including metro, municipal and private buses, trams and trolleybuses, which are heavily used, often at or near capacity. However, due to the lack of investments in system over the recent years, the condition of the system has deteriorated and the system integration, both physical and operational, is weak. Moreover, the city’s transport plans have not fully responded to the spatial expan-sion (suburbanization) of the city, growing motoriza-tion and changing mobility patterns. Under these circumstances, the city is experiencing burgeoning traffi c congestion, and consequently, deterioration of the air quality, increase in travel time and costs, increase in road traffi c crashes and casualties, and loss of productivity.

The optimization of the public transport and meeting the increasing investment needs for transport infra-structure are among the top priorities city.

In this background, the City Development Strategy prepared in 2011 identifi ed transport as one of the city’s top development priorities. The Strategy estimat-ed that the investment needs in transport infrastruc-ture for the period of 2011-2025 would range between €1.1-2.1 billion. It also identifi ed the coherent and enhanced traffi c management as a means to improve reliability of urban mobility.

The City Administration has already taken important steps to upgrade its rolling stocks, which proves its commitment to the development in the sector.

Newly the World Bank has engaged in the transport sector in Kiev in preparation for an advisory assistance.

The recently Kyiv City Administration has requested the Bank for support towards preparing a strategy and action plan to improve the environmental and fi nan-cial sustainability of its urban transport system.

The proposed activity will complement the city’s eff ort by helping prioritize investment needs, which would lead to strategic allocation of resources. It would also help achieve institutional development, such as policy reforms, improved planning capacity, and better management and operation of existing systems, with which the benefi ts of investments would be sustained in the long-run.

74 75

INVESTMENT PROJECTS • TRANSPORT

PROJECT’S DESCRIPTIONME “Kyiv investment agency” is developing the project. The reconstruction of the road junctions disentangles the land plot for development. The building plot area is 8,850 sq.m., the total area of the land plot is 2,48 ha (6,12 acres).

ADDRESSLeningradska sq., Kyiv, Ukraine

LOCATIONThe project`s land plot is located in the residential-commercial area on one of the main transit routes of the city neighboring local recreation zone. The proximity to the public transport – 3 minutes walk to the bus station, 30 minutes drive to the interna-tional airport.

PROJECT’S PARAMETRESLand plot – 2,48 ha (6,12 acres)Building plot – 8,850 sq.m

PROJECT’S DESCRIPTIONME “Kyiv investment agency” obtained all required permits and urban limitations. Metro station lobby to be reconstructed and the shopping center to be constructed. The current people fl ow is 54,000 per day (the highest in the city). The land plot is 1,18 ha (2,91 acres). The GBA of the shopping center is 25,000 sq.m.

ADDRESSBrovarskyi ave., Kyiv, Ukraine

LOCATIONThe project`s land plot is located in the commer-cial-residential area neighboring to the Interna-tional exhibition center. The proximity to the public transport – 1 minutes walk to the metro and bus station

PROJECT’S PARAMETRESLand plot – 1,18 ha (2,91 acres)GBA – 25,000 sq.m

OFFICE AND TRADE COMPLEX CONSTRUCTIONon Leningradska square in Kyiv

TRANSPORTATION HUB RECONSTRUCTIONMetro station “Livoberezhna” in Kyiv

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CITY PARTNERSPROJECT’S DESCRIPTIONME “Kyiv investment agency” is developing project. Metro station lobby to be reconstructed and as an annex the underground shopping and entertain-ment center with parking to be constructed. The land plot is 0,6 ha (1,48 acres). The GBA of the shop-ping and entertainment center is 20,000 sq.m.

ADDRESSLesi Ukrainky sq., Kyiv, Ukraine

LOCATIONThe project`s land plot is located in the commer-cial-residential area on the main route towards city center. The proximity to the public transport – 1 minutes walk to the metro and bus station, 10 minutes walk to the city center.

PROJECT’S PARAMETRESLand plot – 0,6 ha (1,48 acres)GBA – 20,000 sq.m

TRANSPORTATION HUB RECONSTRUCTIONMetro station “Pecherskaya” in Kyiv

INVESTMENT PROJECTS • TRANSPORT

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CITY PARTNERS

Budhouse is a group of companies operating in real estate sector of Ukraine. Established in 2007 and starting its investment activity in 2009, Budhouse Group has been concentrating on large scale property development projects in cities with population over 1 million people as well as smaller cities with good potential for growth and regional market opportunities.

In particular Budhouse Group operations include the following:• Acquisition of land plots for further

development & construction of real estate property;

• Acquisition of existing real estate property with the purpose of re-development;

• Acquisition of investment property projects at construction stage;

• Attraction of investments for further development of real estate projects;

• Establishing partnership relations with Ukrainian and international companies.

During the recent years the Company has demonstrated considerable growth not only in terms of investments, but in expanding its regional presence.The Company owns 11 real estate projects in major cities of Ukraine: Kyiv, Kherson, Cherkasy, Odesa, Kharkiv, Zaporizhzhya and L’viv with total GBA up to 730.000 sq.m. and the following breakdown: 87% - Commercial real estate; 6% - Residential; 6% - Hotel; 1% - Offices.

As of today the following projects have been put into operation: • 2011. Khortitsa Palace, Business Center in

Zaporizhzhya, Class A, GBA 5.700 sq.m./GLA 3.700 sq.m.

• 2011. Four Points by Sheraton Zaporozhye, 4* Hotel, 165 Rooms.

• 2012. FABRIKA. Large Shopping center in Kherson, GBA 82.000 sq.m./GLA 65.000 sq.m.

Number of outlets: 400, Parking: 1200 spaces. • 2013. LUBAVA. Medium Shopping center in

Cherkasy, GBA 26.000 sq.m./GLA 18.200 sq.m. Number of outlets: 90, Parking: 200 spaces.

Budhouse Group Projects under construction:• YESSA. Medium Shopping Center in Odesa,

GBA 52.200 sq.m./GLA 40.000 sq.m.. Number of outlets: 200, Parking: 600 spaces. Date of Commissioning: H1 2016.

• NIKOLSKY. Large Shopping center in Kharkiv, GBA 104.000 sq.m. (incl. Parking)/GLA 52.200 sq.m.. Number of outlets: 160, Parking: 700 spaces. Date of Commissioning: H2 2016.

• FORUM L’VIV. Medium Shopping Center in L’viv, GBA 75.000 sq.m./GLA 35.300 sq.m., Number of outlets: 130, Parking: 620 spaces. A joint project with Multi Development Corporation (Netherlands). Date of Commissioning: 2015.

• Sofitel. 5* Hotel in Kyiv CBD, 278 Rooms, 16 Apartments.

Company’s Projects under development: • FABRIKA-2. Large Shopping center in

Zaporizhzhya, GBA 70.100 sq.m./GLA 52.700 sq.m. Number of outlets: 200, Parking: 1200 spaces. Date of Commissioning: H2 2016.

• HARTZ. Large Shopping center in Kyiv CBD, GBA 247.000 sq.m./GLA 91.000 sq.m. Number of outlets: 250, Parking: 1960 spaces. Date of Commissioning: H2 2016.

• MARIINSKY. De-Luxe Residential Complex in Kyiv CBD, GBA 33,000 sq. m./GLA 13,928 sq. m., 60 Luxury apartments, 120 parking spaces. Date of Commissioning: 2018.

BUDHOUSE GROUP, LLC

Budhouse Group has been awarded with “The most dynamic developer 2012” nomination during the “National Competition of Leaders of urban real estate and infrastructure “City Awards 2012”, 30-31 October 2012, Kyiv. In 2013 BHG has been awarded with Rank #3 among Ukrainian developers in terms on-line voting “iBuild Ukraine”, hosted by the Confederation of Builders of Ukraine, January 2013.

The Company’s projects have been honoured with a numerous set of awards in terms of professional real estate events in Ukraine: • LUBAVA. “Best Medium Project 2010”. National

Award of commercial real estate “Mall Awards 2010”, 8-9 December 2010, Kyiv.

• FABRIKA. “Best Large Shopping Center of the Year”. National Competition of Leaders of urban real estate and infrastructure “City Awards 2011”, 1-2 December 2011, Kyiv.

• FABRIKA. “The Best Operational Large Shopping Center of Ukraine” National Competition of Leaders of urban real estate and infrastructure “City Awards 2012”, 30-31 October 2012, Kyiv.

• FABRIKA. “The best shopping center 2012-2013”. On-line voting “iBuild Ukraine”, hosted by the Confederation of Builders of Ukraine. January, November 2013.

• YESSA. “Best Project of Medium Shopping Center” National Competition of Leaders of urban real estate and infrastructure “City Awards 2012”, 30-31 October 2012, Kyiv.

• YESSA. Ranked #3 as “The best shopping center”, On-line voting “iBuild Ukraine”, hosted by the Confederation of Builders of Ukraine. November 2013, Kyiv

• NIKOLSKY. “The Most Ambitious Project of Large Shopping Center”, National

Competition of Leaders of urban real estate and infrastructure “City Awards 2012”, 30-31 October 2012, Kyiv.

• Four Points By Sheraton Zaporozhye has obtained a TripAdvisor ® Certificate of excellence 2013; led among of the three best Starwood Hotels in the Region during February 2013, and received a high recognition from customers winning the International “Brand Health Award”.

Budhouse Group has established effective partnership with large international developers. In 2013 Company brought its local expertise into joint project with Multi Development Corporation (Netherlands) FORUM L’VIV. Company’s flagship developments HARTZ and NIKOLSKY are being executed in close cooperation with Sonae Sierra - international shopping centre specialist. Since 2010 the Group is cooperating with CB Richard Ellis in terms of project evaluation, consultancy and operations. Budhouse Group is a strategic Ukrainian partner of Starwood Hotels & Resorts Worldwide, Inc. which also carries out management of Four Points by Sheraton Zaporozhye hotel.

Budhouse Group is open for new investment opportunities in the regions of Ukraine focusing mostly on Commercial real estate, establishing partnerships with regional landlords and developers as well as strengthening its’ international contacts.

03150 Kiev, Ukraine. Velyka Vasylkivska str., 62/64. Tel.: +38 (044) 207-38-28

Fax: +38 (044) 207-38-29www.bhg.kiev.uainfo@bhg.kiev.ua

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CITY PARTNERS

City Capital Group was established in 2007 by well – known in real estate and development businessman Ofer Kerzner and his partners. The Group develops, builds, manages and sells the most successful and unique projects in Ukraine. The company’s assets are located mainly in Kyiv and Kyiv region.

Thanks to a long-term experience, comprehensive relations with the best local and international developers, architects and designers, and also a highly professional team of experts in-house, the company realizes diff erent types of projects in sphere of development with invariable success.

The Platforma project is the fi rst, biggest and most unique creative cluster in Kyiv, aimed at developing a wide range of projects involving creativity, fashion, education and social activities. The venue with an area of around 64 000 m2 is located on the left bank of the city within walking distance to “Lisova” and “Chernihivska” metro stations and 15 minutes’ drive from the city centre and Boryspil airport. It off ers its visitors a unique combination of retail & leisure areas, offi ces, art-clusters and outdoor entertainment in a unique surrounding.

What used to be the largest textile factory has now re-invented itself as a multifunctional centre

ARTZAVOD PLATFORMA IN KYIV OUTSTANDING AND EXCITING PROJECT OF CITY CAPITAL GROUP

with a unique format based on the synergy of artisan clusters, creative industries, business communities, entrepreneurial spheres and social, cultural projects development in the preserved old factory, surrounded by a green zone, which creates an urban, interactive, festival style atmosphere of working, shopping, good food and ‘chill out’. Art-zavod provides commercial premises that are part of a multifunctional cluster with offices, retail, services and entertainment functions. This cluster is formed by representatives of a creative business, including cafe and shop concepts, design and architectural bureau, media and advertising agencies, workshops and publishing houses, IT and showrooms for designer goods, etc. The shops and creative industries in Art-zavod Platforma are different from the ones found in classic retail locations. The community of creative people assembled in one place generates a highly concentrated creative environment, comfortable for the development of creativity, cultural and leisure activities, improvement of education and work.

Festivals are an essential part of Platforma project, since lots of people gather in one place to spend free time, to chat, dance, and enjoy the atmosphere, food and music. The quality of festivals is growing very fast, and today, the venue is the most suitable for them in the city. For the last year Art-zavod Platforma’ team has successfully carried out festivals, that gathered on site thousands of people of diff erent age, interests and subcultures, such as:

• Street Food Festival with more than 90 vendors, off ering interesting, creative forms of street food, being prepared right on the spot, gourmet master classes, a large farmer’s market, local cookbooks, contests, music, DJ sets, stand up shows etc.

• Artisan Coff ee Festival, where the visitors could taste the coff ee from all over the world, watch exclusive master classes and fi lms, learn diff erent types of coff ee preparation.

• The New Old, famous upscale vintage-inspired market featuring original art, antiques, clothing, jewelry, handmade treasures, home décor and outdoor furnishings.

• Kyiv Music Market, the biggest famous music event with more than 50 vendors of vintage vinyl, alternative music shops, band performances, sales of musical instruments, DJ sets, master classes of famous musicians.

The advantages of creative industries increase competitiveness, higher productivity, new fi rm formation, growth, profi tability, job growth and innovation. The result of these advantages has been that policy makers around the globe have supported clusters as economic development strategy.

Art-zavod Platforma project off ers a new way of thinking, new business formation and innovation approach, captures important linkages in terms of technology, skills, information, marketing and customer needs, which are increasingly regarded as fundamental to competition and to the direction and pace of innovation.

Telephone: +38 044 270 74 00Fax: +38 044 270 74 04E-mail: info@citycapital.com.ua info@artzavodplatforma.com.uaWebsite: www.citycapital.com.ua www.artzavodplatforma.com.ua

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CITY PARTNERS

ESTA Group is one of the biggest real estate holdings in Ukraine. The main areas of ESTA Group’s business cover commercial real estate of premium segment including office and trade centres, logistics complexes and hotels real estate.

As on December 2013, the total value of Group’s assets amounted to about $ 505 million*.Today ESTA Group runs hotels and business centres in Kiev and Donetsk, a logistics centre in Dnepropetrovsk, a land bank with a total area over 100 hectares and a number of projects in

ESTA GROUP

progress. ESTA Group also includes ESTA Property Management company, which main task is real state item management.

Our strategy focuses on developing the most marketable businesses. That is why ESTA operates today in the following business areas: • investing and developing commercial

premium projects,• hotel management,• property management and maintenance.

Being a managing company ESTA Holding provides the full cycle of works at all stages of project development from project assessment to maintenance engaging where necessary the best international experts and consultants.

Our portfolio comprises projects under development and operating facilities delivering a sustainable cash flow.

ESTA Holding portfolio: completed projects• “Opera” 5* Boutique Hotel, Kiev• “Leonardo” Business Centre, Kiev• Mixed-use Complex “Pushkinskiy”, Donetsk• “Donbass Palace” 5* Hotel, Donetsk • “Park Inn” Hotel, 4 *Donetsk

ESTA Holding portfolio: projects under development• TSUM, Kiev (department Store)• the art-center and residential complex on

Andriyivsky Uzviz, Kiev• closed gate community in Pluty (Kiev region)

During the years of its operation, ESTA Holding has turned into one of the most rapidly developing players in Ukraine real estate market.

*The source is ESTA Group’s consolidated stetements for 2013, made according to IFRS and realized by independent auditing company

8, Ilyinska Str., Business Center Ilyinsky, entrance 6, 2nd fl oor, Kyiv, 04070, Ukraine

Tel.: +38 044 507 14 00Fax: +38 044 507 14 02E-Mail: esta@estaholding.comWeb: www.estaholding.com

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CITY PARTNERS

KAN Development Group was set up in 2001. Presently, KAN Development has successful experience in comprehensive real estate management: concept development, design, construction and maintenance of A-class business centres, shopping malls, residential areas and apartments, mixed-use projects, and multilevel commercial car parks.

In its operation, the Company simultaneously develops over 15 projects at various stages and phases of implementation. The Company’s objective is the leadership in the Ukrainian developer service and construction market. Our key advantages comprise the staff of skilled professionals, a number of reliable partners, and

the extended list of accomplished and current projects. The projects implemented by KAN Development include Ocean Plaza Shopping Mall – a major entertainment centre and shopping mall in the capital city, IQ Business Center – the first А+ class business centre in Kyiv, 101 TOWER and Senator – A-class business centres, and DOMINANT Business Centre; several lines in the PARKOVE MISTO Residential Development Area, COMFORT TOWN Residential Complex, DIAMOND HILL Premium Class Residential; ARENA City Shopping and Entertainment Centre, ARENA Entertainment, Bilyi Kashalot Commercial Car Park, etc. We are currently engaged in the successive implementation

KAN DEVELOPMENT BUILDING THE FUTURE

phases under the projects of the PARKOVE MISTO Residential Development and COMFORT TOWN Residential Complex, RESPUBLIKA – the largest mixed-use facility and centre in Ukraine, Bionic Hill Innovative Park, Ocean Mall Shopping & Entertainment Centre; Tetris Hall and Central Park – the business class residential development.

The Company has project management professionals, the office of architects, Construction Company (general constructor), design office, and profile teams for engineering, operation, financial, commercial and legal support of projects.

During the history of its business operation, KAN Development has joined numerous professional organisations and associations. KAN Development is a member of the Ukrainian Construction Association, the Council on Tall Buildings and Urban Habitat (Chicago, IL, USA), and the Pilot High-Rise Construction Programs approved by the Ministry for Regional Development, Construction and Housing & Utilities Sector of Ukraine. The Company has established links and cooperation with leading domestic and foreign design companies and engineering firms, and is permanently extending its abilities and capacities through implementation of new technologies.

Currently, the KAN Development Group is associated with:• over 1.2 million m2 of successfully completed

projects;• more than 400,000 m2 of retail space and

over 300,000 m2 of residential space at the stage of development and construction in progress; and

• over 2 million m2 of residential and retail space at the concept and design stage.

KAN Development’s performance has been recognised by international experts, market professionals and Ukrainian communities. In the recent years, the Group and its projects have been the winners in the nominations of the Best Developer, Best Shopping Mall, Best Office Centre, and Best Residential Centre in different Ukrainian and international ratings (MAPIC AWARDS, CHOICE OF THE YEAR, CP AWARDS, CITY AWARDS, THE BEST OF THE BEST AWARDS, AND THE AWARD IN THE RESIDENTIAL DEVELOPMENT CATEGORY BY THE MINISTRY FOR REGIONAL DEVELOPMENT AND CONSTRUCTION OF UKRAINE).

26th fl oor 101 Tower, Tolstoy Street, 57, Kyiv, 01032, UkraineTel.: +38 044 247 57 48

Fax: +38 044 247 57 49offi ce@kandevelopment.comwww.kandevelopment.com

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CITY PARTNERS

PJS “HC “Kyivmiskbud” is a leader of Ukrainian construction sphere.

The Largest and the most outstanding real estate operator, focused on needs of citizens with average income. The company keeps the course on ensuring of maximal accessibility of its production for the widest consumers range.

A Chairman-President of PJS “HC “Kyivmiskbud” – Igor Kushnir, an Honored Economist of Ukraine, Candidate of Judicial Science.

“Kyivmiskbud” works on a prime real estate market. The company as a contractor has been building almost a half of all housing that is being constructed by a contract method. Our work strategy is focused on constant extending of production activity sphere and service rendering. Public Joint-Stock “Holding Company

“Kyivmiskbud” unites in its structure companies and enterprises that can ensure fulfillment of all construction project cycle from designing up to project developing and estimation documentation as well as to building erection and organization of its further service exploitation.

“Kyivmiskbud” was the first among construction companies that initiated own investment activity, created and developed the programme of housing construction through attraction of internal private investments and ensured its implementation.

Nowdays “Kyivmiskbud” this is:• There are almost 100 enterprises in PJS “HC

“Kyivmiskbud”, united in a one construction and investment complex, which ensure erection of facilities for “key ready”.

PJS “HC “KYIVMISKBUD”

• There are more than 30 thousand of highly qualified professional builders of all specialties, different managerial specialists;

• It has been certified a business activity of majority enterprises in accordance with ISO 9001-2000;

• It has been certified the management activity of executive personnel of the Holding Company in accordance with ISO 9001-2000;

• Modern construction technologies, equipment, instrument and the newest construction machines that are operated by certified specialists;

• Firm traditions of reliable, responsible work in construction of residential complexes, social and transport infrastructure, sports facilities and hotels, public amenities centres, leisure activity and engineering utilities, educational institutions and healthcare facilities.

Our values:Highly qualified team of specialists which by its every day work maintains more than semi centennial authority of famous Holding Company.

Respect and responsible attitude to incurred liabilities to partners, investors and society.Our strategy:• Opening up new real estate market segments.• Implementing of construction innovative

technologies.• Promotion of economy and country

prosperity.• For 60 years history “Kyivmiskbud” has

constructed more than 44 million of real estate square metres. Long-term experience of using innovative technologies makes it possible for the company to increase

construction volumes year on year and put into service not less than 300 thousand square metres per year. Except residential housing, the company has built 96 hospitals, 105 polyclinics, 649 kindergartens, 345 schools. And what is more, hotels, cultural centres, universities, industrial facilities and utilities, transport infrastructure junctions. And sure enough, reconstructed National Sports Complex “Olimpiyskiy”, which accepted 350 thousand football fans from 21 countries of the world during holding of a final part of European Football Championship EURO 2012.

“Kyivmiskbud” is famous not only with its unique experience but also with its time-proved reliability. There is being justified Holding Company’s unofficial slogan is “We always build to the end” with every facility being put into service. The Company overriding priority is investors’ trust, who investing in “Kyivmiskbud”, always know that they will not be got in wrong.

First of all, a famous “Kyivmiskbud” are – people. Starting from bricklayers and ending with top management – all as a man works harmoniously and professionally, inasmuch as know that after them are investors’ confidence and outstanding history.

Nowadays, “Kyivmiskbud” – is a solid collective of highly qualified professionals whose work has been proved by European quality certificates. A year on year Holding Company implements successfully construction innovative technologies, adhering to firm traditions of reliability and responsibility.

4/6, Suvorov str., Kyiv, 01010, Ukraine Phone: +38 (044) 280-62-62, +38 (044) 280-90-11

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CITY PARTNERS

More than 40 completed projects

12A, B. Khmelnytskoho st., Kyiv, 01030, Ukraine

tel./fax: +38044 235 13 33

WWW.STOLITSAGROUP.COM

NEW PROJECT

NEW residential district of Kiev

Ecologicaly favorable area 12 km to the city center RETROVILLE

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CITY PARTNERS

In KIDLANDIA children play the most favorite game for them - they pretend themselves adults, and, at the same time, absorb a lot of useful information. While playing children have fun and learn responsibility, independence, and respect, develop their socializing skills and creativity.

KIDLANDIA is a small replica of a real city with its architecture and atmosphere. Streets, buildings, cars create a sense of the “real world”.

Each part of the project is carefully outworked to make the game exciting and realistic. KIDLANDIA has its own law and regulations, official currency and passports, driving license and credit cards. A number of KIDLANDIA activities was created in collaboration with brand partners – leading Ukrainian and international companies: producers, retailers, distributing companies in order to build the most realistic urban infrastructure.

KIDS THEMED PARK “KIDLANDIA”

The project includes 50 role-playing activities, which are mini-analogues of urban infrastructure (for example: bank, supermarket, fi tness club, beauty salon), public institutions (fi re department, police, employment center), the media industry (radio, TV studio, publishing agency), health care (clinic, dentistry), industry (dairy plant), entertainment (theater, karaoke club), the automotive sector (driving school, etc.), as well as various schools and studios (such as art school, fashion studio, model agency, etc.).

Working on diff erent jobs and getting acquainted with various adult professions kids earn local currency which they can put on their bank account or buy toys or souvenirs in the shops of KIDLANDIA city, as well as they can spend them to have fun in entertainment like karaoke club or aqua-make-up or study new professions in pilots schools or in photo studio.

The majority of activities in KIDLANDIA are designed for kids aged from 4 to 16 years old. Nevertheless, every kid can fi nd an interesting job and get new knowledge and skills which are useful in the real world. Kids younger than 4 years old can have fun in their own play area specially developed according to their needs. Toddlers can climb soft wall, bounce on the water trampoline or play in the miniature kitchen while adults can easily change kids clothes or warm their milk. Adults also can feel comfortable in KIDLANDIA – they can spend time in diff erent recreation zones, café and restaurant.

Kids rule the world in KIDLADIA. Adults can enter this world only in company of the child. As well as adults are forbidden to step inside kids job areas,- thus adults can only watch their kids’ activities but do not participate or interfere.

Grand opening of the Project took place on 15th of March 2014, but even now we can be proud of the

results of its work. Many of Kiev’s kindergartens and other pre-school institutions, schools, colleges and lyceums bring kids to KIDLANDIA to conduct some lessons, carry out educational and social activities and have parties. Modern equipment of KIDLANDIA is a proper base to conduct usual school lessons like, for example, biology and chemistry. Kids also can try themselves in the areas beyond typical school education - as radio host or presenter on tv, editor of a newspaper or fl ight attendant on the plane.

As successful project and powerful anchor for shopping and entertainment centers, KIDLANDIA became the point of interest for Ukrainian and international real estate developers. Next year KIDLANDIA will be proud to invite you to the new projects in Ukraine and neighboring countries.

Visit of KIDLANDIA is an exciting adventure for a kid. No wonder that children can spend here the whole day.

www.kidlandia.ua LOCATION: Kyiv, EC “BLOCKBUSTER”, 34V Moscow avenue OPENING DATE: 15 MARCH 2014PROJECT DEVELOPER: EC “BLOCKBUSTER” www.blockbuster.ua CONSULTANT OF THE PROJECT (DESIGN, IMPLEMENTATION AND MANAGEMENT): SQM EXPERTS www.sqmexperts.com info@sqmexperts.com

KIDLANDIA is the largest interactive kids themed park in Ukraine. The project concept creates a new ap-proach to the entertainment and education of children. KIDLANDIA is a unique edutain-ment project which provides powerful en-vironment for encouraging child’s physical, emotional and cognitive development.

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CITY PARTNERS

City-creating companyUDP is the first company, which has implemented the urban development experience of developed countries in Ukraine, which provides for the creation of a modern city with comfortable accommodation.

Today UDP is a developer having sufficient assets for implementation of major projects.

UDP is a city-creating company, which has implemented more than 12 unique objects in the Ukrainian market in the preceding 13 years.

The company is among the top three market leaders, has the financial opportunities, but most importantly, understands the planning and development of the city of the future.

For more than 13 years of successful work in the market, the company has created and built:- 10,899 m2 of new engineering communications- 11,918 m2 of facilities for sports- 18 ha of parks and green areas- 20,574 m2 of space, which accomodates schools and kindergartens.

UDP INVESTMENT AND DEVELOPMENT UKRAINIAN COMPANY

Residential estateCurrently, the construction of modern residential complexes is an integral part of the harmonious development of urban space. Within this process, the residential complexes of UDP play an important role in the formation of the progressive appearance of the city. The modern reference objects of UDP are the pride of the capital city, Odessa and Crimea.

UDP residential complexes are located in the best areas of the city, where a high level of comfort is guaranteed. In addition to high-quality square metres of housing and the most successful location of complexes, UDP assures the infrastructure development, from fi tness centres to shops, beauty salons and educational institutions.

Commercial real estateUDP has built the shopping malls and infrastructure facilities that contribute to the development not only of the city, but also of the entire region. Their distinctive feature are the uniqueness, complexity and scale. The largest shopping and office centres and airport are the UDP objects built to contribute to the formation and development of urban infrastructure and public areas. The UDP projects bring a new era, the city takes on a modern look, laying the foundation for its further progress and development. In 2012, the two most anticipated shopping and entertainment centres in Ukraine were opened, the investor of both was the UDP development company, namely Ocean Plaza shopping centre in Kyiv and MEGANOM shopping and entertaining complex in Crimea. These conceptual designs of UDP are unique to Ukraine. With the new SEC, in which UDP acts as a project developer, the agreements were made with a whole list of leading global brands, which have not yet been presented in the Ukraine.

MEGANOM shopping and entertaining complex, Ocean Plaza shopping centre, Kyiv airport— each of these UDP projects is unique and contributes to the harmonious development of urban areas, infrastructure, improvement of the quality of life and increase of the investment attractiveness of the city.

ArchitectureUDP is an innovative company. Continuous introduction of advanced technologies and global best practices enable us to create unique buildings, both in terms of architecture and technology. The UDP Company is proud of its architectural solutions for projects. Because the company has engaged the best local architects for their implementation. Each of the projects is truly creative and highly professional and the realised architectural solutions have become an exemplary model of modern urban planning! UDP is the first company to implement the urban development experience of the advanced countries in Ukraine, implying that development of a modern city offering comfortable living conditions is the highest priority for the developers themselves.

Key success factorsThe successful experience of the company has enabled creating an effective and sound structure of project management to ensure high-quality work and precise deadlines. The introduction of advanced technologies enables creating benchmark projects with unique architectural and technical elements. All new buildings in Kyiv from UDP are attractive from the investment point of view.

18 Lavrska StreetKyiv, Ukraine 01015(044) 281-0-281

Web site: www.udp.uae-mail: media@udp.uaFacebook: facebook.com/udp.ua

94 95

CITY PARTNERS

Arricano Real Estate plc has the largest portfolio of realized shopping centres

Arricano Real Estate plc is a leading professional commercial real estate developer and operator of the modern shopping centres in Ukraine. The general leasing area of 6 centres that were developed by the Company is 212 000 sq.m.

Arricano has a solid shareholding structure: Hillar Teder, a majority shareholder of the company, Esto-nian fi rst-string investor in Ukraine; Dragon Ukrainian Properties & Development plc (DUPD) – a British investment fund managed by Dragon Capital. Since September 2013, Arricano’s shares are listed with AIM of the London Stock Exchange - AIM: ARO.

Since 2006 Arricano has invested over USD 420 mln in the construction of modern shopping centres in Ukraine. The Company is backed up by leading fi nancial institutions in the region (European Bank for Reconstruction and Development, Raiff eisen Bank Aval, Oschadbank, Bank Saint-Petersburg).

The Company’s portfolio is geographically diversifi ed taking advantage of high capital purchasing power as well as low competition in the regions: RayON, Prospect, Sky Mall (minority shareholder) in Kyiv; Sun Gallery in Kryvyi Rih, City Mall in Zaporizhia, South Gallery in Simferopol. Prospect, the newest project of the Company opened on September 2014, is one of the largest and most modern shopping centres on the left bank of Kyiv.

In 2015 Arricano continues to develop 3 new projects in Kyiv and Odessa. In particular, the planning phase of Odessa Mall (is planned to be open in the 1st quarter of 2017) and the construction of Lukianivka shopping centre, which has started in October 2013. SEC Lukianivka is located in the Kyiv downtown and its historic centre (the address is 7-7A Dehtyarivska Str.), in a minute walk from the Lukianivka subway station that has one of the largest passenger traffi cs. The project GLA is 46 500 sq.m., the catchment area is more than 1 000 000 people.

Arricano has highly effi cient system of managing its assets and invests in innovative retail technologies to diff erentiate from current and potential competition.

About us

AVG project group is an independent full-house creative design team, bringing together professional architects and designers with one goal – to create a unique design of your object and to realize it. All team members have extensive hands-on experience in a wide spectrum of commercial and housing real estate planning and interior design, including offi ce buildings, shopping malls, etc. During last 10 years the company has developed and successfully implemented more than 100 design projects of individual houses, apartments, offi ces and public spaces.

The company operates in three main areas of design:- Architecture (private property and public facilities);- Public space interior design (business centers, shopping malls, restaurants, offi ces);- Private space interior design (houses, apartments, private residences).The main company activities are:- Architecture engineering and design;- Interior and exterior design of private property and com-mercial real estate;- Assorting and selection of interior details and compo-nents;- Support and supervision during all stages of design and construction.

The core values of the company are:• Professionality• Individual approach• Creative solutions• Eff ectivity• Responsibility for the outcome products

AVG project group provides professional consultation in architecture and design, designs documentation and supports the implementation of an object any level of complexity.An integrated approach is an assurance of quality service and compliance of deadlines.

Our clients and projects:«UDP»: «Meganom» shopping and entertainment com-plex (Simferopol), Novopechersky School (Kiev, Ukraine);Housing estate «Comfort Park» (Kaluga, Russia).«K.A.N. Development» interior design: «KAN Develop-ment» - interior design of main offi ce of the company. «101 Tower» business center (Kyiv, Ukraine), «DTEK» – interior design of main offi ce of the company, «CIG» – interior design of main offi ce of the company, «Farmak» – interior design of main offi ce of the company.

13-th fl oor, 33 T. Shevchenko Boulevard 01032, Kyiv, UkraineTel. +38 (044) 569 67 08Fax+38 (044) 569 67 09 e-mail: offi ce@arricano.comhttp://arricano.com/en/

3a, Gorky St., 01004 Kyiv, Ukrainefront door 1 (fl oor 5, off .13)+38 (044) 227 34 94offi ce@avgdesign.com.uawww.avg1.net

ARRICANO REAL ESTATE PLC AVG PROJECT GROUP

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CITY PARTNERS

Global FirmBaker & McKenzie is a leading global law fi rm operat-ing throughout 77 locations in 47 countries. With a multinational network of more than 4,250 lawyers and 5,300 other professional staff and a presence in virtually every important fi nancial and commercial centre worldwide, we off er our clients an internation-al service unrivalled by any other law fi rm.

Since its inception in 1949, Baker & McKenzie has been committed to providing seamless global legal services from locally qualifi ed lawyers who are indig-enous to the business communities in which they and their clients operate. The Firm has over 60 years experience managing a global practice.

Representation in UkraineBaker & McKenzie was the fi rst international law fi rm to open an offi ce in Ukraine in 1992. Currently, multinational companies, fi nancial institutions, and large Ukrainian enterprises look to Baker & McKenzie for legal representation in Ukraine. Our clients have come to rely on the substantial capabilities of the Kyiv Offi ce and enjoy the benefi ts of being able to access the global resources of the fi rm.

Kyiv Offi ce The Kyiv offi ce of Baker & McKenzie off ers a full range of legal services and business solutions. The profes-sional staff of the offi ce presently consists of about 50 attorneys, including 10 partners, most of whom have received training in either the USA or Great Britain. To assist our professional staff , the offi ce maintains a complete support staff including a full-time transla-tion department, paralegals, and a research and information unit, which includes a library.

The principal practice areas of the Kyiv Offi ce include:• Antitrust & Competition• Banking & Finance• Corporate, including Mergers & Acquisitions and

Securities• Compliance• Dispute Resolution• Employment and Migration• Intellectual Property• International Trade • IT and Communications• Major Projects and Project Finance• Pharmaceuticals and Healthcare• Real Estate and Construction• Tax and Customs

Renaissance Business Center24 Bulvarno-Kudriavska (Vorovskoho) St.Kyiv 01054, UkraineTel: +380 44 590 0101Fax: +380 44 590 0110Kyiv@bakermckenzie.comwww.bakermckenzie.com

For many years the Kyiv offi ce of Baker & McKenzie has been highly recommended by:

BAKER & MCKENZIE

DLA Piper is a global law firm with 4,200 lawyers located in more than 30 countries throughout the Americas, Asia Pacific, Europe and the Middle East, positioning it to help companies with their legal needs anywhere in the world.

Natalia KocherginaPartner Head of Real Estate in UkraineT +380 44 490 9563natalia.kochergina@dlapiper.com

Our legal advice in real estate in Ukraine includes:

Support of land and immovable property transactions

Retail, infrastructure and hospitality projects

Real estate and investment due diligence Contract drafting and negotiation Legal support for construction

Among the clients of our Ukrainian real estate practice: Leroy Merlin, Inditex S.A. (ZARA), Dragon Ukrainian Properties & Development PLC, Regus Business Centers, InterContinental, Starwood Hotels, Auchan, Billa, ISTIL, METRO, Pfizer, DCH, Slavutich Carlsberg Group, etc.

DLA Piper Ukraine LLC is part of DLA Piper, a global law firm.For the full list of offices, please refer to www.dlapiper.com | Kyiv switchboard: +380 44 490 9575

DLA PIPERA GLOBAL REAL ESTATE LAW FIRM10 Years of Success in Ukraine

www.dlapiper.com

98 99

CITY PARTNERS

DTZ is a global leader in property services. DTZ has 28,200 employees operating across 265 offi ces in 52 countries.

We provide occupiers and investors around the world with industry leading, end-to-end property solutions comprised of:• leasing agency and brokerage• integrated property and facilities management• capital markets, project management• investment and asset management • valuation services• development and consultancy services• research and consulting services including global and

local market knowledge, forecasting and trend analysis. Such research helps to make the best long-term deci-sions for their continuous success far into the future.

Our experience combines:• Access to a global platform and second to none knowl-

edge of local market specifi cs. • The most fl exible approach in providing comprehen-

sive services and achieving the best result in optimal timeframes.

• Absolute trust of players of real estate market, both business and state authorities, with unblemished reputation of real estate professionals for more than 250 years.

Major principles of our work always were and always will be:• honesty and openness in communication with client;• high level of responsibility for the result; and • exceptional quality guarantee for provided services.Our goal is your success. Depending on specifi cs of your business, we off er real estate strategy solutions tailored to fi t your business goals.

Did you know that…• DTZ history starts in 1756. • DTZ is the fi rst real estate consultancy fi rm listed on

London Stock Exchange since 1987. • DTZ is the fi rst real estate consultancy fi rm which

opened its permanent representative offi ce on Middle East in 1975.

• DTZ is the biggest real estate consultancy fi rm in China. • The longest established international real estate con-

sultancy in Ukraine• The only company in Ukraine to off er fully integrated

in-house consultancy services

The professionals in EY’s Real Estate, Hospitality & Con-struction group provide advisory services to companies doing business in the Ukrainian market.Project work involves not only experts in real estate advi-sory services, but also EY audit specialists and profession-als in business advisory, tax, legal and transaction advisory services.

Our key services:• Real estate appraisal• Feasibility studies and concept development• Consultations on the hospitality business and concept

development for hotels• Real estate fi nancing and development of an optimal

capital structure• Corporate real estate services and optimization of real

estate portfolios• Project development and management, budgeting,

monitoring of project deadlines and cost control• Location advisory services (fi nding an optimal business

location)• Tax, legal and transaction advisory services

www.dtz.com.

Sergii Kekukh, Associate Director, Real Estate Advisory ServicesErnst & Young LLC19A, Khreschatyk Street, Kyiv 01001, UkraineTel: +380 (44) 490-3029Mob: +380 (67) 473-1618Sergii.Kekukh@ua.ey.com

DTZ EY UKRAINE: REAL ESTATE ADVISORY SERVICES

Marina Krestinina, Manager, Real Estate Advisory ServicesErnst & Young LLC19A, Khreschatyk Street, Kyiv 01001, UkraineTel: +380 (44) 499-2017Mob: +380 (67) 320-0374Marina.Krestinina@ua.ey.com

www.ey.com/cis/reas

100 101

ABOUT JLL, A LEADING GLOBAL PLAYER IN THE REAL ESTATE PROFESSIONAL SERVICES AND INVESTMENT MANAGEMENT

JLL (NYSE: JLL) is a professional services and investment management fi rm off ering specialized real estate services to clients seeking increased value by owning, occupy-ing and investing in real estate. With annual fee revenue of $4.7 billion and gross revenue of $5.4 billion, JLL has more than 230 corporate offi ces, operates in 80 countries and has a global workforce of approximately 58,000. On behalf of its clients, the fi rm provides management and real estate outsourcing services for a property portfolio of 3.4 billion square feet, or 316.0 million square meters, and completed $118 billion in sales, acquisitions and fi nance transactions in 2014. Its investment management busi-ness, LaSalle Investment Management, has $53.6 billion of real estate assets under management.

As a part of our commitment to create real value in a changing world, we are determined to hold ourselves accountable for the social, environmental and economic impacts of our operations, and we are committed to developing policies, business practices and services which drive change in our industry. JLL has been named one of the World’s Most Ethical Companies by Ethisphere Institute for the last seven years in a row.

JLL holds numerous international and local awards including ones received in Ukraine. In 2013 JLL was voted the Best Consulting Company by the Ukrainian Property Awards.

JLL off ers clients integrated services in every sector of the realty: offi ce, retail, warehousing, manufacturing, hotels, land plots, infrastructure projects and projects of social signifi cance.

JLL provides complete commercial real estate services to maximize property value at each stage of a project’s development.

Our key services include:• Capital Markets• Strategic Consulting• Valuation & Advisory• Agency Leasing• Corporate Solutions• Property Marketing• Energy & Sustainability• Project & Development Services (for capital construction and fi t-out works)• Property & Facility Management

Silver Breeze (Kyiv) – Class B+ offi ce building and Shopping center in Dneprovskiy district in Kyiv. Total area: 75,700 sq m

Prospect (Kyiv), SEC opened in September 2014. GLA: 30,400 sq m (without 11,000 sq m occupies the hypermarket Auchan); GBA 80,157 sq m

42/44 Shelkovichnaya St., 01004, Kyiv, UkraineTel: +38 044 490 4444Fax: +38 044 496 0813Email: kiev.ukraine@eu.jll.comWeb: www.jll.ua

Dmitry SennychenkoHead of Country Offi ce, Business DevelopmentDirector, Ukraine&CIS

CITY PARTNERS

PwC, one of the largest professional services organisation in the country, has been operating in Ukraine since 1993 through its offi ces in Kyiv, Lviv and Dnipropetrovsk.

We help organisations and individuals create the value they’re looking for, by delivering quality in assurance, tax and advisory services.

Our clients benefi t from working with both Ukrainian experts and expatriate professionals that bring knowledge and expe-rience from PwC fi rms worldwide.

Among our professionals:

- over 180 auditors;

- over 110 tax and legal consultants ;

- over 50 specialists in business and investment consulting, valuations.

Our reputation lies in building lasting relationships with our clients and a focus on delivering value in all we do.

Кyiv offi ce: 75 Zhylyanska Str., Kyiv 01032, UkrainePhone: +380 44 354 0404Fax: +380 44 354 0790 Dnipropetrovsk offi ce: 1A K. Marks Ave., Dnipropetrovsk 49005, UkrainePhone: + 380 56 733 5010Fax: + 380 56 733 5015

Lviv offi ce: 72 Нeroiv UPA Str., Lviv 79015, UkrainePhone: + 380 32 242 5305Fax: + 380 32 242 5305

E-mail: pwc.ukraine@ua.pwc.com

JLL PWC

102 103

CITY PARTNERS

Association of retailers is the only organizationally-legal, non-commercial organization of the retail sphere in the territory of Ukraine. It presents itself as a voluntarily consolidation of the corporate persons key players of the branch.

On January 2015 the amount of the members of this As-sociation – more than 300 players from the retail market.

MISSION OF THE ASSOCIATION.Сonsolidation of retail companies’ eff orts and their useful formation in the growing civilized Ukranian retail market .

AIMS AND GOALS OF THE ASSOCIATION.• Promoting middle business in Ukraine• Impact on the market of leasing relations• collaboration and protection of interests of Associa-

tion’s members at the public authority, and also at the other organizations in Ukraine.

• Organization of discussions, seminars and conferences, media statements, giving of the consultations, involve-ment of local and foreign experts - consultants for discussion urgent problems and fi nding ways to solve them by common eff orts.

• Provide with recommendations while planning the development of the retailer at the markets of Ukraine and at the markets of the close foreign countries.

The Association annually holds Retail & Development Business Summit. The next Summit will be held December 9, 2015 in Kyiv.

On its results, we were decided to start working on the rank commissioned and preparing for launch commercial shopping centers.

Rating Shopping Center is held together with international research company Factum Group, based on the data of retailers - members of the Association.

Rating Shopping Center is held together with international research company Factum Group, based on the data of retailers - members of the Association

The Association is an expert in giving the recommenda-tions to retailers regarding opening commercial real estates within all Ukraine.

UTG is the Ukrainian market leader of consultancy, com-mercialization and commercial real property management specializing in support of the key commercial projects. The Company’s goodwill is very well known among clients, the biggest retailers and business angels, concerning compre-hensive solutions that involve professional consultancy in the area of real property marketing.

The UTG team developed a line of innovative products and completed projects which set standards for Ukraine’s commercial real property market. Our clients consider one of the main Company’s advantages is a deep knowledge of the Ukrainian market peculiarities and ability to fi nd effi cient solutions.

OUR ADVANTAGES:

The Company consults on the most signifi cant projects within a market and selects lessees.

All Company’s projects are successful.

The Company has a rich experience and a large number of realized projects.

UTG off ers the widest range of services in the market (mar-keting and architectural designs of the estate, business model, brokerage).

The Company solely proposes real property management service, manages several malls successfully.

The Company has a professional staff of qualifi ed archi-tects who create contemporary projects of commercial, housing and hotel estates.

UTG has realized a lot of projects in the Ukraine and CIS (Belarus, Georgia, Moldova, Russia).

The Company is known in Europe (is a member of many international professional organizations) and constantly brings new western brands to Ukraine.

TODAY UTG IS:

3.2 mln sqm leased premises;

100 opened real estate objects;

650 clients;

23,9 mln m2 completed works on consultancy;

Over 700 real estate researches;

13 years of successful operation in the real property market.

Kruchinin OlegPresident 00 050 381 2212oleg.kruchinin@rau.com.ua Yana ZubarCEO 00 096 762 84 02yana.zubar@rau.com.ua

Kiev / Ukraine / 2A Mechnikova str. BC Parus tel./fax: +380 44 5372364 www.utgcompany.com

UKRAINIAN RETAIL ASSOCIATION

UKRAINIAN TRADE GUILDREAL ESTATE CONSULTING COMPANY

104 105

CONTACTS

KYIV CITY STATE ADMINISTRATIONvul. Khreschatyk, 36 g, Kyiv, 01044Ph: (044) 205-73-37e-mail:info@1551.gov.ua

DEPARTMENT OF CONSTRUCTION AND HOUSINGvul. Volodimirska, 42, m. Kyiv, 01030Ph: (044) 235-61-02e-mail: dbz@kievcity.gov.ua

DEPARTMENT OF ECONOMICS AND INVESTMENTS vul. Khreschatyk, 36, Kyiv, 01044Ph: ( 044) 202-77-00; 202-72-49Fax: (044) 202-76-60Е-mail: org@guekmda.gov.ua

DEPARTMENT OF CULTUREShevchenko Boulevard, 3, Kyiv, 01004 Phone : (044) 279-61-09 Fax : (044) 279-59-64 E-mail : kmdakultura@gmail.com www.dk.kievcity.gov.ua

DEPARTMENT OF TOURISM vul. Khreshchatyk 12, Kyiv, 01044 Ph: (044) 202-6087

ARRICANO REAL ESTATE PLC13-th fl oor, 33 T. Shevchenko Boulevard 01032, Kyiv, UkraineTel. +38 (044) 569 67 08Fax: +38 (044) 569 67 09 e-mail: offi ce@arricano.comhttp://arricano.com/en/

AVG PROJECT GROUP3a, Gorky St., 01004 Kyiv, Ukrainefront door 1 ( fl oor 5, off .13)+38 (044) 227 34 94offi ce@avgdesign.com.uawww.avg1.net

BAKER & MCKENZIERenaissance Business Center24 Bulvarno-Kudriavska (Vorovskoho) St.Kyiv 01054, UkraineTel: +380 44 590 0101Fax: +380 44 590 0110Kyiv@bakermckenzie.comwww.bakermckenzie.com

BUDHOUSE GROUP, LLC03150 Kiev, Ukraine. Velyka Vasylkivska str., 62/64. Tel.: +38 (044) 207-38-28Fax: +38 (044) 207-38-29www.bhg.kiev.uainfo@bhg.kiev.ua

DEPARTMENT OF URBAN PLANNING AND ARCHITECTUREvul. Khreschatyk, 36, Kyiv, 01044Ph: (044) 235-10-25Е-mail: info@gugrad.gov.uawww.kga.gov.ua

DEPARTMENT OF HEALTHvul. Prorіzna, 19, m. Kyiv, 01001Ph: (044) 284-08-75; Fax: (044) 278-01-03Е-mail: admin@health.kiev.uawww.health.kievcity.gov.ua

DEPARTMENT OF TRANSPORT INFRASTRUCTURE vul. Leontovich, 6, m. Kyiv, 01030Ph: (044) 202-63-13; Fax: (044) 202-63-33Е-mail: dti@kievcity.gov.ua

STOLITSA GROUP12A, B. Khmelnytskoho st., Kyiv, 01030, Ukrainetel./fax: +38044 235 13 33WWW.STOLITSAGROUP.COM

DLA PIPER UKRAINE 77A Chervonoarmiyska StreetKyiv 03150, UkraineT: +380 44 490 9575W : www.dlapiper.com

DTZ UKRAINEVolodymyr Mysak,Director of Capital MarketsMobile; + 380 50 359 23 44volodymyr.mysak@dtz.kiev.uaNick CottonManaging DirectorMobile +380 50 3322564nick.cotton@dtz.kiev.ua

ERNST & YOUNG LLC19A, Khreschatyk Street, Kyiv 01001, UkraineSergii Kekukh, Associate Director, Real Estate Advisory ServicesTel: +380 (44) 490-3029Mob: +380 (67) 473-1618Email: Sergii.Kekukh@ua.ey.comMarina Krestinina, Manager, Real Estate Advisory ServicesTel: +380 (44) 499-2017Mob: +380 (67) 320-0374Email: Marina.Krestinina@ua.ey.comwww.ey.com/cis/reas

106 107

CONTACTS

ESTA HOLDING8, Ilyinska Str., Business Center Ilyinsky, entrance 6, 2nd fl oor, Kyiv, 04070, UkraineTel.: +38 044 507 14 00Fax: +38 044 507 14 02E-Mail: esta@estaholding.comwww.estaholding.com

JLL42/44 Shelkovichnaya St., 01004, Kyiv, UkraineTel: +38 044 490 4444Fax: +38 044 496 0813Email: kiev.ukraine@eu.jll.comwww.jll.ua

KAN DEVELOPMENT GROUP26th fl oor 101 Tower, Tolstoy Street, 57, Kyiv, 01032, UkraineTel.: +38 044 247 57 48Fax: +38 044 247 57 49offi ce@kandevelopment.comwww.kandevelopment.com

KYIV INVESTMENT AGENCY11-A, Tereshchinkivska Str., 01004, Kyiv, UkraineTel../ Fax: +38 044 289-53-51e-mail: info@kp-kia.kiev.ua

UDP Central Offi ce18 Lavrska StreetKyiv, Ukraine 01015(044) 281-0-281www.udp.uae-mail: media@udp.uawww.facebook.com/udp.ua

UKRAINIAN RETAIL ASSOCIATIONKruchinin OlegPresident 00 050 381 2212oleg.kruchinin@rau.com.uaYana ZubarCEO 00 096 762 84 02yana.zubar@rau.com.ua

UKRAINIAN TRADE GUILDKiev / Ukraine / 2A Mechnikova str. BC Parus tel./fax: +380 44 5372364 www.utgcompany.com

KYIVMISKBUD PJS HOLDING Company 4/6, Suvorov str., Kyiv, 01010, Ukraine Phone: +38 (044) 280-62-62, +38 (044) 280-90-11

PWCКyiv offi ce: 75 Zhylyanska Str., Kyiv 01032, UkrainePhone: +380 44 354 0404Fax: +380 44 354 0790 Dnipropetrovsk offi ce: 1A K. Marks Ave., Dnipropetrovsk 49005, UkrainePhone: + 380 56 733 5010Fax: + 380 56 733 5015Lviv offi ce: 72 Нeroiv UPA Str., Lviv 79015, UkrainePhone: + 380 32 242 5305Fax: + 380 32 242 5305E-mail: pwc.ukraine@ua.pwc.com

SQM EXPERTS+38 (044) 499 83 71/72+38 (067) 446 41 46info@sqmexperts.comwww.sqmexperts.com

108 109

NOTES

110 111

NOTES

112 113

NOTES

TABLE OF CONTENTS

INTRODUCTION 2

UKRAINE IS THE HEART OF EUROPE 4

KYIV IS THE REGION OF OPPORTUNITIES 8

BUSINESS ENVIRONMENT 14

LEGAL ENVIRONMENT 18

TAX ENVIRONMENT 22

REAL ESTATE MARKET 26

INVESTMENT PROJECTS 46

Transport 73

CITY PARTNERS 78

CONTACTS 104

Kiev Investment Agency 48Real Estate 50Health 65IT 68Energy Saving and Waste Management 69

Investments 28Offi ces 30Retail 32Hotels 36Logistics 38Tourism 40

Kyiv City State Administration

KYIV INVESTMENT AGENCY

Tereschenkivska, 11-A, Kyiv, 01004Tel./fax: (044) 289-53-51welcome@investinkyiv.orgwww.investinkyiv.org