The purchase, which comes from Secure Property Investment and Development (SPDI), represents the first real estate acquisition by a Western private fund in Ukraine since the Russian invasion began in 2022.
1. Key Details of the Transaction
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Location & Size
- 0.54 hectares in central Kyiv, close to Lvivska Square.
- The land is considered suitable for luxury residential construction. -
Price & Payment Structure
- The total cost is $2 million, paid in both cash and APF shares.
- The transaction finalizes a package agreement dating back to 2020 between APF and SPDI, involving six assets across Bulgaria, Romania, and Ukraine.
2. Timeline & Background
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Delayed Completion
- According to APF CEO Guy Barker, certain conditions of sale were not met before Russia’s full-scale invasion of Ukraine in February 2022.
- APF continued to monitor developments closely and proceeded only after being sufficiently confident in Ukraine’s future stability. -
Strategic Context
- This deal is significant because it marks the first Western private fund to invest in Kyiv real estate since the outbreak of war in 2022.
3. Future Plans for the Plot
- Use Assessment
- APF will determine the optimal commercial or residential use of the land, including planning and obtaining permits. - Potential Development Paths
- Sell to a developer interested in a prime central Kyiv location.
- Establish a joint venture with a local partner to undertake a construction project.
4. Broader Real Estate Developments in Kyiv Region
- Large-Scale Residential Project
- Plans are in place for a new 100-hectare residential complex on the grounds of the Kyiv Poultry Farm.
- This “new town” could house 40–50 thousand residents, nearly half the population of nearby Brovary.
By closing on this purchase, Arcona Property Fund signals a renewed vote of confidence in the Ukrainian real estate market, despite ongoing security challenges. The move may encourage other international funds to consider new investments in Kyiv and beyond.
