The format of profitable real estate is popular in developed countries: the USA, Europe, Israel, UAE.
In Ukraine, this market is rapidly developing thanks to Standard One, which is part of the construction holding KDD Ukraine. The first project of the S1 VDNKh company is a successful example of the first profitable residential complex in Ukraine. Its business model is that the owner of the apartment makes a profit from renting out their property without any worries related to their maintenance and finding tenants. For 2 years of the existence of the residential complex, it has already demonstrated high profitability and demand.
What is special about the S1 VDNKh residential complex?
1. Ready-to-live-in format
S1 VDNKh is located on Vasilkovskaya Street, 100a, right next to the metro station, opposite VDNKh and Goloseevsky park. The residential complex was commissioned in 2019, but all the apartments in it were bought back at the construction stage.
In addition to the developed residential infrastructure, the S1 VDNKh concept assumes that the buyer receives a ready-to-live-in apartment. This means that the purchased housing has already been renovated, there is all the necessary furniture and equipment. In addition, four apartment design options were developed for the Standard One project, each based on functionality, spaciousness, light zoning, and ergonomics.
Thus, a person buys a ready-to-live apartment with a modern renovation, and he does not need to spend additional money, effort, and time on the care associated with buying a home.
2. Passive rental income
The management company from the developer S1 Rent offers apartment owners in S1 VDNKh a service that is unique for the Ukrainian market - an apartment rental service.
There are several advantages of this format: the owners do not need to look for tenants, prepare the apartment for eviction/settlement, solve possible problems with the operation, pay for utilities. All the concerns about housing and tenants are taken over by the management company, and the owners are left to receive their passive income from renting out the apartment.
This is a very convenient option for those who do not want or cannot spend their time on various operational tasks.
3. Online services
All conditions have been created for the residents of S1 VDNKh to make their stay as comfortable as possible, and the time spent on solving “everyday issues” is minimized. They can pay bills, rent, call masters, use online support 24/7 through the online account. Also, residents can use the services of a concierge service — order apartment cleaning, dry cleaning, and food delivery - and all this online in a matter of minutes.
In turn, the owners, through their personal online account, can place vacant apartments for rent, as well as monitor the condition of their apartments - lease terms, payment, etc. All of these features are available in the Standard One web service and mobile app.
New project — apart-hotel S1 Terminal
The investment business model of S1 VDNKh has already demonstrated its effectiveness in the Ukrainian market. Standard One has no doubts about the success of its next profitable project, backing up its confidence with a legal guarantee of its profitability for investors.
The new project is the S1 Terminal business-class apart-hotel, which will appear at the end of 2022 opposite the Kyiv South Railway Station, the most important transport hub in Ukraine. It is designed for business travelers who come to the capital for business purposes.
The infrastructure of the apart-hotel
S1 Terminal is a building that will house apartments, offices, and infrastructure for work and leisure. The interior of the apartment will be executed in a minimalist style, it will be dominated by restrained colors with bright accents of decor. Guests will have at their disposal a coworking space that will occupy an entire floor. It will be possible to accommodate the whole team or work comfortably alone.
There will also be a fitness room, conference room, and fine dining restaurant with an informal club atmosphere. On the last, 25th floor, there will be a lounge area, where hotel guests can dine in a restaurant with a panoramic view of Kyiv or sit by the fireplace with a glass of sparkling wine.
Thus, hotel guests, business tourists, during a business trip will be able to cover all their needs without leaving the S1 Terminal - to work, hold meetings, relax and have fun.
What will the investor get?
The concept of an apart-hotel — the investor becomes the owner of the apartment and receives passive income, and a world-renowned professional hotel operator deals with all issues of real estate exploitation. The S1 Terminal income model assumes two investment options:
The owner of the apartment receives a guaranteed income of 5,5% per annum in foreign currency, regardless of the results of the hotel. At the same time, Standard One signs a binding lease agreement with the investor, which sets out a fixed rate.
The income of the apartment owner will depend on the results of the hotel's operation - the total rental income will be divided proportionally between the investors. This model is for those who want to receive a maximum income of up to 15% per annum.
Both options are profitable and cost-effective. Based on the data of the analysis of the indicators of the Kyiv hotel market, the daily forecasted occupancy of the apart-hotel on average will be 61%. The profitability of the project will be 30% higher compared to standard real estate properties thanks to the combination of daily and monthly apartment rentals, which will ensure a stable high occupancy rate. The presence of a developed infrastructure and hotel services from a professional operator will create additional demand among the solvent audience.