Traces of Revival
“Real estate is among the sectors which suffered most from the economic crisis. This, as a consequence, had a substantial impact on legal services in this sphere. At the beginning of the year some real estate deals were still moving forward (mainly involving deals in which negotiations had started the previous year),” Anastasiya Bolkhovitinova, senior associate with the Kiev office of DLA Piper, comments. “In spring-summer there were no real estate transactions and legal services mainly included a review of lease agreements aimed at lease downsizing and reducing rents. However, the real estate market began to revive from the end of summer in 2009. Nevertheless, activity is still very weak. The deals which are currently taking place mostly concern industrial and agricultural real estate (e.g. production buildings, elevators) as well as infrastructure projects (e.g. terminals). Buyers are also looking for ‘high quality’ commercial real estate, meaning operating business centers in prime locations with long-term lease agreements concluded with anchor tenants. Some mergers and acquisitions also took place in retail,” she adds.
Baker & McKenzie continues to receive the recognition of peers. The office acted for international clients and provided advice on investments in the Ukrainian real estate sector.
In 2009 lawyers advised Aisi Realty Public Limited on the lease by UVK of 49,810 sq. m. in a class “A” logistics complex in Brovary for a 10-year period; Hypermarket, a member of METRO Group with respect to the built-to-suit project and subsequent long term property lease for the first real, — Hypermarket project in Ukraine. Serhiy Piontkovsky, partner, together with Maxim Sokiran, counsel, advised KDD Group in connection with the design and construction of a hotel and office complex in Kiev. Lina Nemchenko, Anna Melnyk, Olena Klymenko and Oleg Matiusha all have broad practice that encompasses real estate.
In the course of this year the real estate practice of Vasil Kisil & Partners has been transformed to the real estate, infrastructure and PPP practice. Significant efforts on the part of its leading experts — Oleg Alyoshin, partner, Alexander Borodkin and Natalia Dotsenko-Belous, senior associates, strengthened the firm’s position not only as leading legal advisors in the real estate sector, but in the infrastructure and PPP sectors. The firm’s lawyers played an active role in developing PPP/concession legislation. Recent experience of PPP projects include advising (together with Mott MacDonald Limited and ERSTE Bank) Ukravtodor in starting the tender for the Kiev Ring Road concession project, which is valued at USD 2.4 billion, as well as advising a concessionaire on the Lvov — Krakovets concession project. Among others in November 2008 — February 2009 the firm’s lawyers acted as a local legal advisor to a group of companies issuing corporate bonds to be placed on the Tel Aviv Stock Exchange. The team conducted full-scale legal due diligence of 16 Ukrainian companies related to 4 major development projects at different stages. Lawyers also advised Continium Group in a chain of transactions related to closure of the group’s debt obligations to a Ukrainian bank and setting-off respective demand rights against the sale price of a hotel reconstruction project valued at USD 38 million with an underlying land plot in Kiev; advised Ukrainian Investment Engineering Company on a project to the tune of EUR 80 million from the very beginning, etc.
The attorneys of Arzinger recently advised German logistics provider RHENUS on its entering into a project development agreement with a Ukrainian property developer for the development of logistics premises (build-to-suit); represented UNIQA Real Estate AG in the acquisition of a shopping mall in Nikolayev, Kharkov, Lvov; supported Porsche Ukraine on the acquisition of land plots in Kiev; advised Bayer AG on entering into a office premises lease agreement, etc. The real estate team consists of 7 members and is led by Timur Bondaryev and Anna Pogrebna.
Clients who refer to DLA Piper with real estate-related assignments include OBI, Apollo Real Estate Advisors, 1849 Plc, Inditex S.A., Regus, InterContinental Hotels Group, Bank Austria Creditanstalt, etc. In 2009 the real estate team of the DLA Piper office in Kiev provided legal support to a series of real estate and land acquisitions undertaken by its clients and supported a number of significant lease projects. The work carried out by the team included legal due diligence, development of transaction structures, support in negotiations with sellers and local authorities, drafting pre-lease and lease agreements with landlords. In addition to profound real estate experience the practice is well known for its tax-driven and business-oriented approach. The team recently advised Groupe Atlantic in the process of purchase of a plant and land plots in Odessa Region, including conducting legal due diligence of the project; structuring of transaction; transaction support, etc. The team also provided full legal support to Inditex S.A., a global fashion retailer which consists of brands like Zara, Massimo Dutti, etc., with regard to the opening of a shop in Kiev. The firm`s lawyers provided advice on lease agreements in Odessa and Kiev for new stores and coming projects. Other notable projects include advising Assos Capital, investment fund, on the acquisition of trade premises in the centre of Kiev (including due diligence and full transaction support with debt financing of the deal). Recent experience also includes advising a leader of exhibition businesses in Ukraine on the sale of an exhibition center. Natalia Kochergina, partner and head of real estate practice, and Anastasiya Bolkhovitinova, senior associate, both have broad experience of real estate and construction matters.
In 2009 Sayenko Kharenko experts advised clients in the real estate sector and those whose business model uses real estate as a key strategic asset. The firm recently gave advice regarding a construction project for the development of commercial real estate in Kiev to the tune of USD 40 million; on the construction of 150,000 sq. m. office properties on the left bank of Kiev. The firm’s list of clients for real estate work includes the Kiev Investment Group, Parkridge, SunMicrosystems, UBS, etc. Sergiy Ignatovsky, Michael Kharenko and Dmytriy Korbut are known as key persons in this practice area.
International law firm Salans continues to occupy a visible place in the sector and recently acted as legal advisor to CHS Inc. regarding its acquisition of an ownership interest in a grain terminal in the port of Odessa. The team acted as legal advisor to Multi Development B.V. with regard to all phases of their Ukrainian shopping mall development projects in Ukraine; as legal advisor to Delta Maxi with regard to a sale-purchase agreement of the corporate rights in a Ukrainian retailer. The office was recently engaged in advising Accor Group regarding hotel franchising in development of the Etap brand. The practice is headed by Myron Rabij. Considerable input in the past year was provided by Volodymyr Monastyrskyy, Ihor Mehedynyuk, Markian Silecky and Oleg Kuhanskyy. Natalia Selyakova handled real estate finance projects.
The real estate practice of the Kiev office of Clifford Chance focused on real estate acquisition and investment advice. The team supported London & Regional Properties in its acquisition of the Podil Plaza office building and Globus Shopping Centre in Kiev, advised Europa Capital on its acquisition of a warehouse complex in Brovary District and provided legal support to Ghelamko in connection with potential investments in real estate projects in Ukraine. Tomasz Stasiak, counsel, Jared Grubb, partner, are reported to be key practitioners in Kiev.
The Kiev office of CMS Cameron McKenna scores highly for extensive practice in real estate matters. This year the lawyers provided restructuring for a group of 60 companies where the group is the beneficial owner of development projects in 12 jurisdictions, including Belgium, Bulgaria, Czech Republic, France, Romania, Serbia, Slovakia and Ukraine; advised an international developer with respect to a number of projects around Ukraine regarding development of commercial real estate and logistics centers; advised a European property fund manager regarding lease and construction issues connected with warehouse premises in Kiev Region; provided legal support to a major international bank on prolonging USD 65 million term financing of a real estate project in Ukraine; represented a major international bank on restructuring part of a USD 140 million term financing of acquisition of a major shopping centre in Kiev; advised a European DIY retailer on various issues of opening of DIY stores in several regions of Ukraine and represented Abris Capital Partners in its acquisition of a supermarket chain for USD 35 million, etc. Daniel Bilak, partner, Olga Zaplatinska, Olena Brodovska, Victoria Papenkova, senior associates, all participated in the list of real estate practice.
The well-developed real estate practice group of Asters advises on all types of real estate issues, including acquisition, lease and sale of property, security transactions, construction, real estate finance and property-related corporate matters. The team of lawyers, as led by partner Roman Kostenko, is experienced in transactions involving commercial, industrial and residential property as well as land and unfinished construction. In 2009 Asters advised Eurasia Investment and Industrial Group on real estate finance, construction, corporate structuring, retail lease agreements; Russia Partners, a Russian investment fund, on financial and corporate restructuring of its Ukrainian property holding companies; Green Gas International, international clean energy company, on implementation of a coal mine methane recycling project; European Real Estate investment and fund management firm on various real estate, corporate and other post-closure matters in relation to a big trade center (Kiev); REDI Capital on corporate and financial restructuring issues. The firm also represented a Canada-based developer in judicial and corporate issues in connection with its joint-venture established with the aim of constructing and running a trade center in Kharkov; a major Russian industrial group (alumina industry) with regard to real estate issues of its affiliated plant in Ukraine.
Konnov & Sozanovsky attorneys at law carried out regulatory and transactional work, also acting on behalf of its clients in various litigations. The team at Konnov & Sozanovsky provided legal support for foreign and Ukrainian legal entities as well as entrepreneurs and individuals with regard to drafting and conclusion of lease, sublease and rental agreements of residential and non-residential premises; represented the interests of the Ukrainian advertising agency in the Kiev city district administrative court (sue on the imposition of arrest on immovable property to the Public enforcement service was satisfied completely) and advised Oriflame Cosmetics Ukraine Ltd on different day-to-day real estate issues. Vitaliy Pravdyuk and Dmitriy Sichkar have solid expertise in this practice area and are key practitioners in the firm.
The real estate group at Spenser & Kauffmann, as headed by Oleksandra Fedotova, advised clients on a broad range of issues. It is worth noting legal support provided in the acquisition of non-residential premises was for the sum of USD 4 million, where the firm’s lawyers represented CJSC Savik Shuster Studio.
Albert Sych and Pavlo Moroz played a key role in different real estate projects of Ernst & Young in Kiev, including legal and tax structuring of the real estate portfolio for one of the largest Ukrainian business groups; taxation and legal services to an international investment and construction company; advising an international financial company on holding an operational structure in Ukraine (comparative analysis of pros and cons of carrying out construction activity through commercial RO vs. through a subsidiary).
Gramatskiy & Partners is a visible market figure due to its participation in various construction and development projects. Its team recently represented Seven Hills in a project to build the Aeroport City office complex, whose total project value is USD 280 million.
ANK law firm based in Odessa is often engaged in different industrial projects that are typical for the South of Ukraine. The team, including Alexander Kifak, Andrey Selyutin and Nadezhda Sofronkova, has acted as legal adviser for reconstruction of a cement plant in the city of Odessa for EUR 40 million and supported DE HPC Ukraine in constructing a container terminal for USD 290 million.
The legal team of the Salkom law firm is known for handling various projects that make up different areas of law. The latest highlight is headed by partner Alexey Kot who, together with help from Ivan Zevakov, provided legal support for the agreement between ViDi Group and BLG Logistics Group in establishment the joint venture BLG ViDi Logistics, whose main purpose is the construction of a modern logistics center by 2013 for EUR 28.6 million Andriy Kravets & Partners maintains an impressive profile and regularly represents construction companies in documenting relevant transactions and obtaining all required permits and authorization. The firm advised ICD Group in the negotiation process between real estate developers aimed at resolving business relations; advised Deutsche Pfandbriefbank AG (former Hypo Real Estate Bank AG) in connection with a USD 43 million secured loan facility provided to a Ukrainian company to finance the Aladdin shopping mall. Partner Vladyslav Lyaskovskiy successfully handles real estate projects at the firm.
The Gvozdiy & Oberkovych law firm’s track record includes providing advice on various aspects of real estate development, acquisition, sale and disposal, financing, and tax structuring. In 2009 the team provided advice on a EUR 25 million development and construction of co-generation facilities in Western Ukraine for Eastern European Energy Union; EUR 15 million default construction of an electricity power plant managed by a large Ukrainian company and financed by CSOB; conducted a real estate due diligence in connection with the USD 9.5 million acquisition of an agricultural company in Ukraine. Partners Sergiy Oberkovych and Valentyn Gvozdiy have been building up the practice over the past year.
The young and ambitious team at D&D Lawyers has already provided general advice to its clients — developers: supporting Multi Developer, a foreign real estate development company, on various real estate issues related to the company’s activities in Kharkov and Odessa; advising New Business Insights, a Ukrainian real estate developer, on various real estate issues. Viktor Dovhan, managing partner together with key lawyers — Sergiy Zheka, Volodymyr Yakubovskiy and Hanna Mykolska are involved in practice.
In 2009 Gide Lourette Nouel advised an international consortium of building contractors and operators on the construction of a new passenger terminal for Ukraine’s main international airport; one of the world’s leaders on the construction materials production market on the implementation of a multi-million Euros green-field cement plant project in Ukraine; provided legal support to a leading European producer of wind energy on a wind farm project in Ukraine; supported a major European road and transport infrastructure construction company on its involvement in the development of a new ring road around Kiev; assisted a multinational company in negotiations regarding securing a loan from the EBRD for the construction of a sea port terminal, etc. Karl Hepp de Sevelinges and Tetyana Bessarab are well acknowledged in this practice area.
Deloitte tax and legal department enjoyed a good portion of work in the Ukrainian real estate market, like: performing vendor legal due diligence on a major Ukrainian real estate holding made up of multiple legal entities possessing more than 10 major real estate objects; rendering legal assistance to a foreign religious organization for reconstructing a real estate portfolio in Ukraine, etc.
Chadbourne & Parke currently represents a group of more than 50 Irish investors in connection with disputes over acquisition of real property in Ukraine. The investors are seeking the return of over EUR 8 million used to fund a property scheme in Ukraine. Sergiy Onishchenko and Oksana Firsova enjoy a high level of expertise.
A major European investor was advised by INTEGRITES within the framework of technical and financial requirements prescribed by valid Ukrainian legislation in respect of an enterprise construction project in southern Ukraine, whose core operation is manufacturing freezer equipment, estimated at USD 40 million. Furthermore, the team advised a Ukrainian investor on construction of a townhouse area in Odessa Region, supported the tapping of USD 17 million financial funds for implementation of this project. Olena Varenyk, together with Oleksandr Rudakov, are key contacts of this practice.
The recently established local practice ENGARDE assists large foreign investors, developers, major Ukrainian companies, state bodies and authorities. The professional team of associates, as led by partner Andriy Vyshnevsky, has played a key role in a number of commercial real estate disputes. ENGARDE’s recent portfoilo of representation includes acting for Ukrayinka City Council, Kiev Region, in negotiations with local authorities regarding securing property rights and land title transfer related to a building of historic value; and advising Horwath HTL Limited and Liffey Tanascado Kft. on certain issues of Ukrainian commercial law related to private leasing of the George Hotel in Lvov, Ukraine.
This year Legal Alliance Company supported the purchase of a cottage real property in Feodosiya for USD 200,000 and participated in the purchase at exchange trading of industrial equipment of a factory undergoing bankruptcy. Irina Pustovitenko is the main practitioner.
Olena Kibenko, Yaroslava Onika and Iryna Selivanova are all prominent real estate experts at the ILF. In 2009 the firm advised clients on various real estate issues, including legal support of a construction project of 2 residential housing buildings in Kharkov valued at USD 32 million. The firm’s lawyers supported the process of executing the lien of the land plot in recreation aims; participated in privatizing a building for a Ukrainian bank worth more than UAH 10 million, privatization of construction for hotel accommodation worth UAH 2.5 million.
The lawyers of Pavlenko & Poberezhnyuk, in particular Larysa Poberezhnyuk and Olena Protsenko, conducted due diligence in 2009 of a real estate object on the territory of Ukraine and project structuring on accepting mortgage amounting to more than USD 10 million for OJSC Promsvyazbank.
The real estate experience of Lexwell & Partners covered giving legal support for purchasing commercial property from TAS Group; supported the construction procedures for Toyota-Ukraine automobile centers and others. Andrei Kolupaev and Igor Nagai are respected for their ability to contextualize transactions and think through entire processes.
The real estate practice of Alexandrov & Partners focuses on construction matters. The team provided legal assistance in the construction of a shopping mall and supported the construction of a housing estate in Kiev Region.
The real estate team of KPD Consulting, which is headed by Vladyslav Kysil, provided legal support to a Danish company in construction of HQ building in Kiev Region; supported business activity of a warehouse complex; advised a Singaporean group of companies on its entering the Ukrainian retail market and lease of commercial premises as well as Eurobank Properties REIC on the lease of the company’s assets in Kiev.
Talking about the real estate practice of Sergiy Tyurin & Partners, it is worth mentioning redistribution of shares of joint ownership in real estate objects in Kiev. Sergiy Tyurin, who is known in the Ukrainian market as an expert in corporate law, practices in the sector.
In 2009 Legal Consulting Center acted as the legal adviser of the Polskie Girnictwo Naftowe and Gazownictwo SA as regards the purchase of a real estate object in Kiev; provided legal support to a group of private investors on investing in the construction of an office complex in Kiev, etc. Artur Nonko, Mykola Osinskyi and Roman Kravchenko all handled the mentioned projects.
Dynasty law firm covered corporate issues within construction projects and real estate litigations; Noerr Stiefenhofer Lutz in Ukraine focused on providing advice on construction activities within the confines of the EURO 2012 football championships, investments in the real estate sector and deals structuring, purchase of commercial real estate redevelopment; LCF Law Group advised individuals during related litigation procedures.