ISTIL Group, the diversified business holding controlled by Kyiv Post publisher Mohammad Zahoor, announced on Nov. 17 that it had closed a $35 million acquisition of Leipzig Hotel, a historical building in downtown Kyiv on the corner of Prorizna and Volodymyrska Streets.
The building is a former elite hotel that was constructed in 1900. But reconstruction efforts have stalled in recent years. The property was purchased by ISTIL from Gelegen Inc., the owner of the project since 2002, with permission from Kyiv city officials. ISTIL pledges to invest $25 million into developing the property into a 12,000 square-meter hotel of four-star quality offering 180 rooms. The hotel is expected to open its doors in 2012, the year that Ukraine and Poland are to co-host the Union of European Football Associations’ Euro 2012 soccer championship.
The Kyiv City Council adopted a decision on Sept. 17 that the current terms for reconstruction of this historic building will be good through May 2012. One of the conditions for renovation is that the building’s architectural identity has to be retained.
Vadym Nozdrya, chief operating officer of ISTIL Management, said he welcomed the city council’s approach that “allows to preserve the historical face of the city and – at the same time – develop a modern hotel that is desperately needed for Kyiv’s infrastructure.”
Apart from Leipzig, ISTIL has a large portfolio of real estate projects in the city, including Rialto business center in Podil, Kinopanorama movie theatre on Shota Rustaveli and others.
