DebtX, the Boston-based loan sale advisor, has announced it is selling a $100 mln (€81 mln) commercial real estate portfolio on behalf of a major bank in Ukraine.
The portfolio includes two office buildings in central Kiev and a large regional shopping centre. The Kiev office buildings comprise 19,000 m2 in total, while the operational shopping centre covers 65,000 m2 includes a partially constructed expansion.
The balance of the portfolio consists of residential, land, office, and industrial properties located primarily in Kiev and Dnipro.
'The sale of this $100 mln portfolio of real estate is an important milestone for Ukraine,' said DebtX CEO, Kingsley Greenland.
'For the first time, international investors are being offered substantial, cash-flowing commercial real estate in a transparent sale process. We expect strong interest in these assets.'
Indicative bids are due May 10 and final bids are due May 31. The transaction will be followed by additional sales for the Ukrainian Deposit Guarantee Fund in 2018, according to DebtX.
DebtX has been operating in Ukraine since 2016, conducting its first loan sale in the country in 2017. The advisor estimates there are at least US$20 bn of distressed loans in the country.
'The initial market feedback is that investors like the portfolio as an entry into Ukraine,' said Gifford West, managing director for Europe.
'The portfolio is appealing due to the large assets, clear legal title, and the sellers’ commitment to a transparent process. Seasoned European distressed investors are concerned that Spain and Italy are becoming overpriced. Ukraine, while clearly having significant risks, has strong upside potential.'