An unfinished complex of buildings and constructions that was on a balance of Odesa Regional Job Center was abandoned due to lack of resources to complete construction.

However, in early December 2019, it was carried out a transparent auction on the unfinished complex’s privatization where there were 4 contestants. As a result of fair bidding, Epicentr K bought the complex at a price 7 times higher than a starting price.

Why did the biggest trading centers’ network buy the unfinished construction? What is the new owner going to do with the facility?  What effect will the project implementation have on the local community? Find out interesting facts from the buyer Epicentr K.

Buyer’s details:

Epicentr K is the biggest in Ukraine trading centers’ network. It consists of Trading Center “Epicentr” and 11 building and household hypermarkets “Nova Liniya” across the country.

Fact 1. Epicentr actively looks for interesting lots on Prozorro.Sale

Experts of the investor company constantly monitor possibility to acquire objects having investment attractiveness for the company. In particular, they regularly monitor lots on the Prozorro.Sale platform (https://prozorro.sale/).

The public procurement Prozorro system (https://prozorro.gov.ua) is actively used in Epicentr K from its inception, although previously Epicentr K hadn’t participated in any government tenders. These two Prozorro systems are considered in the company as enough effective instruments both for products selling and for acquisition of property (sites for construction).

“We are trying to take every opportunity of the system. Last several years in a row, we cooperate fruitfully with it, – it is said in the company. – Due to the Prozorro.Sale launch, commercial companies in Ukraine obtained direct access not only to bankrupt banks’ assets but also to the small-scale privatization objects (state and communal enterprises’ property), that there hadn’t been before”.

They say in the company that just a few years before, these sales were closed enough. Prozorro.Sale system’s work considerably simplified access, so opportunities to participate in auctions became equal for everyone. “These auctions are very interesting for us in those localities where the company is planning to open its new trading centers” – it is emphasized in Epicentr K.

Fact 2. It is very easy to buy property at a transparent auction

E-auction Prozorro.Sale procedure itself was new for the company’s representatives, however, there were no much difficulty. “We read the rules, tested them as a bidder during an auction. We needed a preparation, of course. We had to assemble set of documents in electronic form and download it to the system”, – it is explained in the company.

Some minor technical issues were connected with understanding of auctions conduction procedure and acceptance. “Prozorro.Sale mechanism differs from other e-systems. However, there weren’t unclear questions for us during the process. Although the auction was held in three steps, it took less than hour”, – it is added in Epicentr K.

There were also no obstacles in contract conclusion. After the bidding was finished, we spent just one week to do all the paperwork.

The unfinished constructions’ complex is situated near the railway station of Izmail city.

The facility’s details:

The unfinished construction facility is located at: 26, Haharina St., Izmail town, Odesa region. The unfinished construction consists of administrative and industrial building, sports and health complex, utility building, storage, pump station and reservoir. The total object’s area is 3.6 thousand sq.m. The construction readiness is about 80%. A land plot area is 1.35 ha. For more detailed information, please, follow the link.

Fact 3. The unfinished construction soon will be transformed into the modern trading center.

It is indicated in Epicentr K that the facility in Izmail (Odesa region) was acquired with the aim of further reconstructing. It will be transformed into the modern trading center with the area of 4,800 sq.m.

The company expects that after the object design completion, a period of expertise undergoes and authorization documents obtaining and the reconstructing term will be about 4 months.

There will be a wide choice of non-food and food products of over than 34 thousand items in sections of the new trading center in Izmail. There will be building materials, products of wood and metal, floor coating, tile, paint, furniture, tools, everything for garden, domestic appliances, household chemicals, auto products, products for children, tableware, stationery and pet goods.

At the top – the privatization facility at the time of sale. Below – the modern trading center Epicentr K in Drohobych.

Fact 4. Reconstructing will be held using modern materials and equipment 

The investor company will held works on area improvement and city engineering and transport development during the carrying out the trading center’s construction in Ismail. It will be updated, in particular, water supply and sanitation systems, rainwater disposal network, electricity supply. It will be also improved transport communications and will be held works on the traffic management of the construction object (technological driveways and access roads etc.)

And furthermore, according to the current legislation requirements, the company will pay assessed contribution to develop social, engineering and transport infrastructure of Izmail town.

Fact 5. The facility’s reconstructing will benefit to the local community

The company assures that the mentioned construction project implementation will be profitable for the city development and will be, in general, an impressive contribution in investments capacity’s increase of the district.

It is reported in Epicentr K that, among other things, the project will positively affect the employment rate. There will be at least 50 new workplaces after the reconstructing. And that means a local residents’ employment, guarantee of decent and stable wages, social package and etc.

And furthermore, the project launch will fill the local budget from taxes and other mandatory fees and charges.

The State Property Fund of Ukraine daily prepares new objects to be transparently privatized all across Ukraine, both in region centers, and in small towns and villages. It is prepared its investment menu for each region, where there are both large unified property complexes, enterprises’ blocks of shares, and individual small objects.

Learn more about an investment menu!