Real estate developer F&C Realty has won a State Property Fund tender to purchase a 25 percent stake in Kyiv's idiosyncratic Salyut hotel, a source close to the company confirmed Feb. 10. But confirmation of the sale is awaiting approval from Ukraine's Antimonopoly Committee.
'We participated in the [State Property Fund's] commercial tender and evidently proposed the biggest amount for the 25 percent package,' a source at Finance & Credit Invest, which handled the purchase for F&C Realty, told the Post.
The nine-story Salyut hotel, located adjacent to Arsenalna metro in Kyiv's Pechersk district, is well-known for its peculiar design, which has given it the nickname 'Granata' ('The Grenade').
F&C Realty, although it does not own a majority stake, plans to make several changes to both the management structure and interior design of the hotel, according to the source at Finance & Credit Invest, who requested anonymity. Priorities include a restaurant overhaul and the complete reconstruction of the basement.
The company declined to be more specific about its plans until the privatization procedure is complete, probably toward the end of this year. Even then, its plans will depend on the will of Salyut's other shareholders. Both the State Property Fund and Finance & Credit Invest declined to identify specific shareholders.
'We can initiate certain plans as soon as we define who the main shareholders of Salyut hotel are,' Finance & Credit Invest said.
Before the sale, the hotel had been privatized to a depth of 67 percent, according to the State Property Fund. The SPF said that various shareholders own that 67 percent, but it would not say whether F&C Realty stands to become the largest shareholder.
The SPF plans to sell the remaining 8 percent share package on the Ukrainian Stock Exchange on Feb. 22. The source at Finance & Credit said that it was considering the possibility of participating in that tender, as well.
News agency Ukrainian News reported that F&C Realty bid Hr 3 million to purchase the 25 percent stake in the most recent tender. It also agreed to settle 25 percent of an outstanding loan debt to the Kyiv City Administration within 60 days, the news agency reported. The Post was unable to establish the size of that debt.
Kyiv is one of the only capitals in Europe that lacks a legitimate four- to five-star hotel. The Salyut advertises itself as a three-star establishment, but Kyiv hotels rarely use Western standards in establishing how many stars they are worth.
Industry News
A unique elite residential house is taking shape nearby the Salyut on 10 Sichnevoho Povstannya (Arsenalna metro).
A company called Sobi is advertised as the developer of the attractive-looking project, while the city's largest construction company, Kyivmiskbud, is the general contractor.
Apartment space will cost Hr 8,404 per square meter in the 6,650-square-meter building, according to Kyivmiskbud. It's due for completion by the end of April. The project was initiated in the summer of 1999.
The building will feature at least 20 modern apartments, an underground parking lot and limited office space. Some of those apartments have already been sold.
Sobi put up all the money for the project, securing a chunk of the funds from future tenants.
Anna Stepanenko can be reached at [email protected].
