By Maria Shevchenko Ruslan Oleksenko, founder of DEOL Partners, shares his ideas about doing business in Ukraine and the country’s future prospects. As a developer and investor with an extensive experience on the real estate market, he strongly believes in the power of ideas and initiatives that can lead to very positive results for investors as well as benefit the local community.
In this the 25th anniversary of Ukraine’s Independence this year, how would you describe doing business in Ukrainian real estate?
For doing business in Ukraine an entrepreneur should definitely be prepared for everything and anything – attention to multiple scenarios and the ability to react appropriately to them are keys to success. As the American phrase says: “There’s no such thing as a free lunch.” The profitability of an investment is nearly always in direct proportion to the level of risk an investor is willing to take. In Ukraine you can expect a higher return on investments, but you should always be flexible and apply the principles of change-management on a regular basis. If you plan to start your business in Ukrainian real estate, I highly recommend you to look for an experienced partner to guide you through the many potential pitfalls.
Our company’s partners have been operating in Ukraine since 1992 and have built up extensive experience in investment as well as the real estate market. We understand the languages, traditions and customs of our part of the world and, thinking like entrepreneurs and developers, also realize the importance of making timely, well-informed decisions.
In turbulent times of the economy, investors tend to stay low and are very sensitive to all changes in the market. How do you build a relationship with investors?
As a real estate developer and investor, myself, I understand their expectations and desired outcome from participating in a project. In these uncertain times, the most important factors are a sense of leadership and stability. The level of trust in a developer is a very sensitive matter and is built on personal reputation, that of the company and its team’s proven ability to achieve the results with a high level of professionalism in any matter. Maintaining close cooperation throughout the project is crucial.
You should first show examples of successful existing projects that your company has developed and launched already and any awards it has earned. For example, DEOL Partners has been awarded as Developer of the year 2013 according to Ukrainian Hospitality Awards and also has gained numerous recognitions for company’s projects in development of office, retail, hotel and other properties. This will give confidence to the potential investor; then you add the project’s financial model to give a clear idea of the projected return on the specific investment. DEOL’s flexible strategy of doing business has secured excellent returns even in the low seasons of the market and in our more seasonal sectors, such as hospitality.
11 Mirrors is #1 on TripAdvisor in Kyiv and Ukraine since 2013
Can you give us some examples of the projects tat your company has been involved with?
Our company’s portfolio includes successful projects that are known for its prominent brands – 11 Mirrors Design Hotel, the luxury boutique property in Kyiv and the first Design Hotel in the CIS-countries; Senator Apartments, the award-winning chain of apartment hotels in Ukraine, operating since 2005; Kiev Airport City, mixed-use multifunctional complex immediately adjacent Boryspil International Airport; Leonardo Business Centre , the first “A” class business center in Ukraine and Senator Lifestyle Club, situated on the Dniepro River and offering a range of sporting and recreational activities in a Western style club format. Distinguished by innovative thinking, the team at DEOL Partners exceeds market expectations while delivering the dream behind each building.
Most of your projects concentrate in Kyiv. Why does your company select Ukraine’s capital as a center of doing business?
Kyiv is the place where national business is concentrated and where international investors and companies initiate their business. With a population of over three million, the city is a place where people want to live or come for short or long visits. These needs should be supported by real estate including business centers, shopping centers, residential developments and hotels, and so DEOL Partners’ investment and development activities are indeed concentrated in our capital city.
However, we are constantly on the lookout for new opportunities. Our team is open to new projects and cooperation with property owners who want to build successful businesses in commercial real estate elsewhere in Ukraine.
11 Mirrors hotel is the first and the only member of Design Hotels in Ukraine
Your company has recently delivered a series of successful projects in hospitality, so can you give us your perspective view on hospitality?
The world is changing. The behaviour and priorities of travellers’ are quite different now and the hospitality sector is full of new opportunities, which is of particular interest to DEOL Partners in our role as hotel developers. For instance, “Bleisure” trend presents a mix of business and leisure activities for a person while travelling. This feature opens numerous chances for developers to re-arrange the hotel’s concept and present the new idea of stay. Such trends and changes as healthy lifestyle for business travelers, growing demographic with Millennials in the target audience mix should be carefully analyzed and considered. I can’t disclose any details yet, but we have already prepared a serious expansion plan that involves new concepts and brands for development abroad, as well as here in Ukraine.
And what are your personal factors for success?
Never to settle for just good results, but to aim for the best possible options, and to be constantly on the look-out for new opportunities and niche markets. My personal passion for excellence has evolved into DEOL Partners’ mission that states: to be the most innovative and competitive commercial organization on the East European real estate market.
Success is always a tricky thing unless you are surrounded by people you trust and believe in and who are ready to support your ideas, vision and initiatives. I am very proud of the DEOL Partners’ team, built-up over the years and able to achieve the results and recognition investors are seeking.
What do you think should be done for Ukraine as a country to strengthen its position in the global market as a place for doing business?
Ukraine must grow – as a brand and destination – to become a hub for doing business in Eastern Europe and as a gateway to the Caucasus and Central Asia. We live in a world with a cyclical economy, where good years change to bad times, so, to ensure continued growth even during difficult times, good companies must adopt innovative outside-the-box thinking and maintain a flexible approach.I firmly believe that Ukraine has every chance of becoming a dynamic recipient of significant overseas capital and investment.
