Western investor acquires land in Kyiv city center for first time since war

A landmark event for the real estate market took place in Kyiv – the Dutch asset management fund Arcona Property Fund (APF) became the first Western private investor to purchase land in Ukraine since the start of the full-scale Russian invasion. The fund purchased a plot of land in the center of the capital from Secure Property Investment and Development (SPDI), as part of a large-scale deal concluded back in 2020.

According to Property Forum, Arcona Property Fund specializes in investments in Central and Eastern Europe, and its shares are listed on the Euronext exchange. The fund’s new property is a 0.54-hectare plot of land located near Lvivska Square, which is considered a promising location for the construction of luxury housing.

According to the terms of the deal, APF paid $2 million for the plot, using both cash and the fund’s shares. The acquisition was the final stage of the agreements between APF and SPDI, which covered six assets in Bulgaria, Romania and Ukraine. It is important to note that the deal was planned to close by 2022, but due to the war, certain of its conditions could not be fulfilled on time.

According to Guy Barker, Director of the Board of APF, after the beginning of the invasion, the company carefully monitored the development of events in Ukraine, assessing the political and economic situation. Due to the improvement of conditions and the fulfillment of the necessary obligations, the fund decided to complete the transaction, demonstrating its confidence in the future of the Ukrainian market.

The next step for Arcona Property Fund will be an analysis of the best option for using the site. The company is considering the possibility of both reselling it to a developer and creating a joint venture with a local partner to implement a residential project.

This deal is an important signal to international investors about the prospects of the Ukrainian real estate market even in war conditions. It can be an impetus for new deals and the activation of foreign capital in the Ukrainian real estate sector.