Arcona Property Fund (APF), a Euronext-listed real estate fund focused on CEE, has purchased a land plot in central Kiev from AIM London-listed Secure Property Investment and Development (SPDI).
The deal marks the first real estate purchase by a Western private fund in Ukraine since the Russian invasion in 2022.
APF said the 0.54-ha plot located near Lvivska Square is well-suited for high-end residential development.
The purchase price was $2 million, paid in cash and APF shares. This transaction completes APF's purchase program from SPDI, initially agreed upon in 2020, encompassing six assets across Bulgaria, Romania, and Ukraine.
Guy Barker, Director of APF's Managing Board, said: “Although the purchase of this site was part of a package deal agreed with SPDI in 2020, certain sale conditions had not been fulfilled before the Russian invasion occurred in February 2022. This obviously required us to reassess both the acquisition in principle and the pricing level initially agreed. We have carefully monitored the military, political and economic developments since then and as the purchase conditions have been fulfilled, we now feel confident enough in the future of Ukraine to proceed with the deal.”
APF plans to determine the best use for the site and proceed with planning and permitting for future development. The company may sell the site to a developer or form a joint venture with a local partner for construction.
