Key facts
- The Gulliver shopping and business center in Kyiv is for sale with a starting price of $207 million.
- The property was seized from oligarch Viktor Polischuk's company, Three O, by state-owned banks Oschadbank and Ukreximbank.
- Three O owed over $675 million in total to the two banks.
- The sale, if successful, would be Ukraine's largest wartime privatization.
- Concerns exist about the high starting price and security risks due to escalated Russian attacks.
A prominent shopping and business center in Kyiv, known as Gulliver, has been officially placed on the market with an initial bid of $207 million. The sale follows the property's seizure by state-owned banks Oschadbank and Ukreximbank from Ukrainian oligarch Viktor Polischuk's company, Three O, due to substantial unpaid debts totaling over $675 million.
The potential sale represents Ukraine's largest wartime privatization effort, exceeding the previous record set by the sale of UMCC Titanium for approximately $96 million. However, concerns linger within Kyiv's business community regarding the ambitious starting price, especially in light of escalating Russian attacks on Ukrainian infrastructure, including commercial centers.
Serhii Fursa, deputy managing director at Dragon Capital, expressed skepticism about the auction's success at the current valuation, citing security risks and the difficulty of recouping the full value of the loans. He anticipates a potential second auction with a lower price if the initial sale proves unsuccessful.
Despite these concerns, Oschadbank highlighted Gulliver's attractive features, including a diverse tenant base of around 250 shops and potential for future development, positioning it as a viable asset for both domestic and international investors, even amidst wartime conditions. The auction is slated to be conducted transparently through the ProZorro online platform.
Speculation has also arisen regarding potential buyers, with businessman Maksym Krippa being mentioned, though his charitable foundation has denied interest. The sale aims to resolve a protracted dispute between Oschadbank and Three O, which previously led to the center's temporary closure.