Real Estate is Real Money

Ukraine is one of the most promising countries for future real estate development and investment. Though established Eastern European real estate markets like Poland, the Czech Republic, Slovakia, Romania and Hungary are showing rapid and steady growth, investors are interested in the Ukrainian market. Yield compression in these already established Eastern European markets play a large role with regard to investor interest. “Despite negative factors in Ukraine, like deep-rooted corruption at all government levels and the ongoing political instability, the most skeptical commentators acknowledge that Ukraine’s real estate market is developing rapidly. At the end of 2007 crucial changes were made to real estate legislation: the real estate market of Ukraine has been facing the problem of a moratorium concerning the sale of agricultural land”, emphasizes Timur Bondarev, senior partner and head of the real estate & construction desk with Arzinger & Partners law firm. “On 28 December 2007 the On State Budget for 2008 Act of Ukraine extended the said moratorium sine die until the coming the On State Land Cadastre and Land Market are passed. The act also prescribes that both the lease right and ownership of communal and state land can be alienated only by the holding of a respective auction. Furthermore, pursuant to On State Budget for 2008 Act of Ukraine the Agency on Land Resources shall be the only authority empowered to sell community-owned and state owned agricultural land”, Mr. Bondarev noted.

Baker & McKenzie earned respect for its competence in Ukrainian real estate market. Serhiy Piontkovsky and Olena Novikova advised Raven Group with respect to setting up a joint venture with a Ukrainian company operating in retailing and wholesale trade in consumer goods with respect to development of plots and construct Class A warehouse in Kiev Region. In addition, Serhiy Piontkovsky, Lina Nemchenko, Maxim Sokiran, Antonina Yaholnyk were involved in advising Nerukhomist Stolytsi (NEST) in connection with the sale for approximately EUR 104 million of the Iceberg Business Center to Eurasia Group. The professional lawyers advised Quinn Group, the Irish property investor, in the USD 59 million acquisition of the company owning the Shopping Mall Univermag Ukraina. Serhiy Piontkovsky participated in representation of the sale of shareholders in connection with the USD 200 million sale of a 100% stake in companies owning the Globus Shopping Mall to London & Regional Properties. This is largest deal in terms of value on the commercial real estate market in Ukraine. Mykola Stetsenko and Hennadiy Voytsitskyi advised LLC Yaroslaviv Val on the 15-year hotel management agreement with InterContinental Hotels Group. The new 280-suite hotel complex is to open by summer 2008 under the InterContinetal Kiev brand name. This the third international hotels’ expansion transaction carried out by the Baker & McKenzie team in the last two years after recent experience with Hyatt Regency (acted for the owner) and Hilton International (acted for the operator) in Ukraine.

Shevchenko Didkovskiy & Partners, and especially Rysbek Toktomushev and Roman Kostenko, are highly recommended for their solid expertise and experience in advising on various issues regarding commercial real estate investment. Its specialists successfully advised Eurasia Group with regard to the USD 140 million acquisition of the Iceberg Business Center and the USD 53 million acquisition of the NTBC-II business centre in Kiev. Shevchenko Didkovskiy & Partners also advised a major Austrian bank in connection with cross-border development financing and Russia Partners with regard to a USD 190 million development loan. The firm’s practitioners also represented Eurasia Group in connection with a USD 100 million acquisition refinancing. The firm is also known for its expertise in development law and office leases. Rysbek Toktomushev, Roman Kostenko, Gennadiy Roschepiy and Tatyana Piskun are considered to be the firm’s leading experts in real estate issues.

Vasil Kisil & Partners has rather lengthy experience of real estate and construction matters. The experienced team was recently engaged in conducting general contract for construction of the residential complex Golden Shore and Victoria Hotel in the city of Yalta between the Energetichesky Standart Group and the construction company ENKA. Vasil Kisil & Partners represented the Energetichesky Standart Group. Oleksandr Khomenko, Yury Grytsenko, Ivan Mishchenko and Nina Sydorenko are attorneys specializing in this area of practice. Konnov & Sozanovsky attorneys at law traditionally concentrate their practice on all matters in real estate. Recent practice included assistance of acquisition of commercial real estate in Kiev, advising Ukrainian and foreign investors on construction, reconstruction, changing the functionality of real estate objects and acquiring construction licenses. Services include negotiating purchase and sale agreements organizing title holding entities, conducting due diligence, preparing deeds and casements, etc. Dmitriy Sichkar runs real estate projects in an effective manner.

In 2007 Sayenko Kharenko acted in some of the largest real estate transactions in Ukraine. Completed projects of Sayenko Kharenko in real estate area include advising developers on Greenfield projects for construction of commercial, recreation and industrial facilities in different regions of Ukraine, advising foreign investors on acquisition of shares in a Ukrainian developer, advising issuers or underwriters on various types of debt and equity financing for Ukrainian real estate companies. The firm worked on various transactions involving the largest domestic and foreign real estate development companies, including DEOL, Kiev Donbass, Portman, TMM, XXI Century, as well as major international investment banks, which include ING, Morgan Stanley, Renaissance Capital and UBS. In particular, over the last 12 months the firm’s lawyers advised on a number of capital markets transactions, including the USD 130 million IPO of the Kiev Donbass Development Group, USD 105 million IPO of TMM and USD 150 million Eurobond placement by XXI Century, and handled the first Ukrainian residential mortgage-backed securitization by PrivatBank of USD 180 million. The firm also acted for major international investors on the acquisition, development and leasing of buildings, as well as land for residential and commercial construction throughout Ukraine. Mykola Orlov, Sergey Ignatovsky, Michael Kharenko and Kirill Levterov are attorneys dealing with real estate issues.

The strong and highly qualified of Alexandrov & Partners provided legal assistance in the building of a housing estate of 6 buildings with a total value of around USD 100 million. Dmytriy Alexandrov enjoys a good reputation. Ruslana Muzichko was highly appreciated during the poll as a top real estate practitioner.

Magister & Partners provides a wide range of legal services in all aspects of real estate development, financing, acquisition and disposal in the retail, residential, office, warehousing, and industrial sectors. The firm’s experts have vast experience of assisting in the legal and financial structuring of real estate transactions as well as proposing services on advising on environmental regulation in the CIS. Volodymyr Baibarza is known for his successful handling of real estate deals.

Spenser & Kauffmann advises clients on various real estate matters pertaining to carrying out due diligence, drafting transaction documents, representing clients within the negotiations procedure, etc. The firm’s real estate team recently represented Mega Mall Invest LLC in a deal to acquire a 70, 000 sq.m. production facility in Cherkassy for USD 8 million. Spenser & Kauffmann has also advised Dragon-Ukrainian Properties & Development Plc on the acquisition of 1,500 hectares of land. The total value of a whole series of deals reached USD 200 million. Aleksandra Fedotova gained a reputation as a lawyer with in-depth knowledge of land and construction regulations that makes her one of the top expert in Ukraine in this field. DLA Piper Ukraine’s team headed by Natalia Kochergina, legal director, advises OBI, a major German Do It Yourself (DIY) retail chain in its expansion on the Ukrainian market. The firm’s lawyers also recently provided full legal support to Atlantic International SAS in conclusion of a leasing agreement for industrial premises in Ukraine. DLA Piper Ukraine also has extensive hospitality practice. The Ukrainian team of DLA Piper acted as a legal advisor of the InterContinental Hotels Group regarding the project to build a 5-star hotel complex, which will be managed by the group. The team also advised one of the largest hospitality companies in the world regarding the implementation of a big project on hospitality franchising aimed at the development and operation of 15 hotels in Ukraine. For hospitality, Margarita Karpenko, managing partner and Olena Bilozor, legal director, are regarded as the key specialists in the real estate field.

Beiten Burkhardt’s real estate law practice has grown and developed dynamically in recent years, having been strengthened by proven professionals in the field. Beiten Burkhardt’s real estate practitioners have substantial experience and a grasp of practical techniques for various real estate transactions. The firm’s services include legal and tax support for preparation and implementation of real estate investment projects and structuring of real estate transactions, conducting legal due diligence on real estate objects, identifying existing legal risks, encumbrances and minimizing their effect, providing legal support for acquisitions of Greenfield and Brownfield sites, legal and tax structuring of property management, preparing and analyzing agreements to be concluded at each stage of a real estate investment, post-commissioning support, legal support during the construction phase and for the state registration of rights to real estate, advising on converting land to other zoning designations. Beiten Burkhardt’s real estate team consists of 7 lawyers and is led by Dr. Julian Ries and Dmytro Kiselyov.

Real estate is one of the Arzinger & Partners’ strongest practice areas. In 2007 the firm’s lawyers advised foreign and domestic companies on acquisition, lease and sale of real estate and related financing matters, including negotiation of mortgage loans and security packages, evaluation of real estate, due diligence, setting up of the corporate structures and vehicles, as well as joint ventures and partnerships aimed at the implementation of large construction projects. Timur Bondarev, Anna Pogrebna, Dmytro Orendarets are appreciated greatly due to the legal support provided by them to various real estate projects.

Volkov & Partners, and especially Andrey Karnaukhov and Maksym Nazarenko, advised a major Ukrainian developer on contractual issues. Their advice included drafting the full scope of construction contracts and agreements for the client. One of the most important components of the specialization of Gramatskiy & Partners attorneys at law is its work in the field of entrepreneurial relations with real estate objects. The practice of Gramatskiy & Partners includes drawing up and expertise of documents which certify real estate rights, drafting of sale contracts and other agreements concerning such objects, case prosecution in disputes on real estate rights, legal support of assets for building financing and assets for real estate operations, etc. Alexander Koval and Igor Reutov have earned a reputation as the key specialists in real estate of Gramatskiy & Partners. Grischenko & Partners has great experience of complex construction, residential and commercial property development, provide comprehensive legal advice, as typically required by developers, contractors, lenders, landlords and real estate owners, architects, and other entities involved in the real estate business. Dmitri Grischenko and Savva Poliakov were rated highly in market research for their professional approach with regard to real estate issues.

Andrey Kolupaev is a highly recommended expert of Lexwell & Partners in the real estate field. In 2007 the firm advised its clients on various real estate issues, including property management, structuring purchase and lease of premises, property complexes, legal due diligence of title documents, preparing the sale and purchase agreements, leasing contracts, etc. The firm’s lawyers advised Sumitomo Corporation and Toyota in relation to the building of Toyota and Lexus automobile centers. This year Lexwell & Partners also advised VS Energy in relation to construction of the Silver Breeze complex. The team conducted due diligence and structuring of a transaction whose value totaled USD 200 million. The lawyers advised Dniprovska Riviera on one of the largest projects in Kiev aimed at construction of a complex of residential apartments, hotel and golf club on the River Dnieper in Kiev to the value of USD 400 million. Andrey Kolupaev, Yuriy Katser, Igor Nagai all have a fine understanding of the ways of doing business on the Ukrainian real estate market. The Salkom law firm, in which Alexey Kot is one of the leading specialists, has acted for AWT Bavaria in acquiring a land plot and leasing of office premises and a show room at the Parus Business Centre and Valmi Office Centre.

The attorneys of the ANK law firm represented the interests of HHLA Company on the reconstruction of the container terminal in the Odessa sea port by the HHLA Company, played a role in the purchase of commercial real estate in Odessa for the Design Italiano Group by representing the Design Italiano Group, participated in the construction and operation of a facility to produce tropical oils by Delta Wilmar CIS from the side of Delta Wilmar CIS and represented the Consulate Office of the People’s Republic of China in the purchase of a building for it in the city of Odessa. Nadezhda Sofronkova and Victoria Tarasenko both have broad experience of real estate and construction matters.

B.C. Toms & Co international law firm conducted due diligence and simultaneously closed 40 land purchase transactions with different vendors to put together a 45 hectare land plot for development, conducted due diligence and handled the purchase of a 100 hectare land plot for a major residential development, completed due diligence and closed a transaction for the purchase of a 15 hectare land plot for a shopping center/warehouses near Kiev, prepared a sale and purchase agreement to purchase 100% of the shares in a company owning a 5 hectare development land near Kharkov, prepared and advised on a FIDIC based construction agreement for a large manufacturing facility near Lvov. Bate Toms, Taras Dumych, Olena Kravtsova and Taras Filimonov were involved in the abovementioned real estate projects.

Vadim Voloschenko, Dmitriy Pavlenko and Oleksiy Katasonov of the Ukrainian office of Deloitte played a role in numerous projects envisaging providing advice to foreign clients regarding their investments into the real estate sector in Ukraine. Vadim Voloschenko advised an international real estate development company regarding the most efficient tax and legal structure to be used during commencing of their business in Ukraine. The firm’s services cover legal due diligence procedures, advice on ownership title documents for real estate objects and the possibility of alienation, purchasing, etc.

Andriy Kravets & Partners advises clients on acquiring commercial properties, i.e. land parcels, office buildings, hotels, premises for industrial use. The firm’s attorneys negotiate and draft the respective property acquisition agreements, conduct due diligence reviews with respect to various types of property, etc. The firm acted as a legal advisor for Auchan in its transactions connected with the acquisition of trade and entertainment centers. Vladyslav Lyaskovskiy perfectly encapsulates legal matters and focuses on the real estate matters. Dinastia law firm is one of the most well-regarded law firms in Eastern Ukraine. Its leading attorneys are Denis Myrgorodskyy, Eugeny Smiuha and Snejana Karagodina, who have wide experience of work with local representatives of foreign companies like Toyota, Porsche, Bacardi & Company, Turkish Airlines, etc. In 2007 the firm took part in organizing several transactions with central Dnepropetrovsk business buildings and was also involved in advising on construction of one of the biggest shopping centers in Ukraine, MOST-City Center, with Alef-Estate acting as developer where the firm represented Alef-Estate. Legal experts at Dmitrieva & Partners carry out marketing of the real estate market, evaluation of risks of a marketing, legal and tax nature. The firm’s lawyers represent their clients in the acquisition and sale of all types of real estate. Oksana Tropets and Lyubov Ignatova are regarded as the key specialists in this field of practice.

Real estate consultation currently implies advising on operation of industrial estate and protection of clients in court. This field of law is practiced by Gennady Tsirat, who heads the real estate department at the Jurvneshservice law firm. The lawyers of LEXFOR, for whom Yuriy Martinyuk heads the firm’s real estate practice, are known for advising clients on the purchase, sale and development of real estate and are quite experienced in rendering legal support in drafting contracts on real estate.

Lavrynovych & Partners has considerable experience of providing its clients with legal support in almost all types of real estate transactions. Maksym Lavrynovych and Stanislav Skrypnyck are well known for their high professionalism, depth of knowledge and vast experience.

Arthur Nitsevych and Alena Losevskaya, partners of the International Law Offices, represented investors and developers in a project to acquire land plots and development of waterfront districts in Odessa Region. In particular, the firm’s lawyers supported construction of the Superproject.com in the city of Yuzhny and development of a port terminal (wood processing) with an investor, the Italian ICL Company, in the course of which the firm represented ICL.

Gide Loyrette Nouel, headed by Karl Hepp de Sevelinges, acted as a legal counsel for European and world leading developers and industrial groups in the acquisition of real estate in Ukraine (from phases of legal due diligence and deal structuring to preparation of legal instruments). Proposed services include advising its clients on construction and infrastructure projects, providing sophisticated legal support in connection with turnkey contractual solutions, leasing, Greenfield and Brownfield development, and other forms of investment in real estate in Ukraine.

AstapovLawyers provided legal support in acquisition of corporate rights by Russian Arbat Prestige. Andrey Astapov, managing partner, effectively runs the process from start to finish. Moreover, the firm’s lawyers represented STG Engineering LLC in the purchase of real estate in Kiev. Tatyana Kuzmenko was named a leading real estate practitioner. The Gvozdiy & Oberkovych law firm represented the developer PSG International in construction of a flat glass plant in Dnepropetrovsk Region. Managing partner Valentyn Gvozdiy provided legal support to major construction and acquisition deals implemented by Dornhefer Ukraine totaling USD 3.5 million.

The real estate experience of Inyurpolis included issue of bonds under real estate construction, legal support and commissioning of a series of objects — elite complexes (Velton Corporation). Yaroslava Onika and Nikolay Kutsekon are highly dedicated experts who provide great support.

The Lawyer Group of Ukraine has represented the interests of LLC Nais in the construction of a residential complex by LLC Nais.

The Legis law firm participated in the project to construct the Mayaki cottage neighborhood.

The lawyers of Integrites specialize in real estate acquisition, advising on research, evaluation and purchase of real estate objects, provide consultancy on participation in tenders, drafting various agreements for land plots and post-transaction legal support. Alexandra Boroday manages real estate projects at Integrites.

Jaroslawa Johnson, Sergiy Onishchenko, Oksana Firsova and Anna Putintseva from Chadbourne & Parke are all known for handling real estate deals.