The Goverenment Sells “Bilshovyk” Plant and the “President” Hotel for $57-67 Million

Tuesday, June 22, 2021
The Goverenment Sells “Bilshovyk” Plant and the “President” Hotel for $57-67 Million

The privatization auction is planned to sale two large properties in the capital of Ukraine

According to the executive director of UkraineInvest Serhii Tsivkach, the starting estimate of the Bilshovyk plant at the privatization auction was preliminarily determined at $45-55 million.

At the same time, Serhii Tsivkach added that the volume of investments, even if we talk not about the industry, but about development — office or residential premises, can range from $300 million to $500 million

According to him, the volume of investments for the President hotel is estimated at $15 million.

For potential foreign buyers, the secrecy label will be specially removed from the data on Ukrainian objects.

Earlier, in 2021, within the framework of the Big privatization, it is planned for the first time in 16 years to sell large objects and involve financial resources. This was announced during a meeting of the parliament on February 3 by the head of the State Property Fund Dmitry Sennichenko.

Kyiv iron foundry and the mechanical plant were founded in 1882 by Czech entrepreneurs. Forty years later, as part of nationalization by the Soviets, the plant was renamed the Bilshovyk. In 2018, during decommunization, its name was changed to the First Kyiv machine-building plant.

The company specializes in metalworking, production of cylinders, hydraulic jacks, rotors, processing of rubber and plastics. The best times of the enterprise are in the past. In 1996, the plant employed about 6 thousand people, in 2021 there were just over 200 employees.

There are more than thirty buildings on the territory, but only two premises are partially used for the needs of the plant. The rest are rented out or empty. Leases account for up to 80% of the First Kyiv machine-building plant's cash receipts.

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