Despite the war: Ukrainian real estate attracts investors

Russia’s full-scale invasion of Ukraine has brought many markets to a standstill.

However, despite the risks, there are investors who continue to invest in real estate. And there are several reasons for this.

Businessman Maxim Krippa has become the largest investor in capital real estate in the past two years. The businessman acquired the Parus business center, a Prominvestbank holiday home in the elite village of Kozin near Kiev, and the Ukraine Hotel, located in the very center of the capital.

In an interview with Forbes Ukraine, Crippa explained why, during a massive war, he decided to buy these properties for millions of dollars. The businessman, who is also the largest Ukrainian player in global e-sports and game development (NAVI, Maincast, GSC Game World – his property), admitted: he has a good reason to invest in real estate in Ukraine .

Hotel “Ukraine”

A landmark building in the very center of the capital, next to Independence Square. The state sold the Ukraina Hotel at auction in September 2024. With the initial price of the object valued at UAH 1.047 billion, during the three-round auction its value increased 2.5 times – to UAH 2.511 billion.

Three companies participated in the auction. The winner was Ola Fine LLC, owned by Maxim Krippa. The company with the highest initial bid of UAH 2.5 billion won. After the deal was concluded, the amount of UAH 3.1 billion went to the state budget.

We remind you what is special about “Ukraine”, apart from its location. It is a four-star hotel with 365 rooms, 8 conference rooms, business center, restaurant and other infrastructure (parking, beauty salon, laundry, etc.). The hotel has a main restaurant “Ukraine” with a total area of ​​451 square meters. m for 250 people and 4 banquet halls.

Crippa called this property the “Mona Lisa”. He believes he paid a decent price for the hotel.

“An iconic, legendary asset that no longer exists and never will, one of a kind. Therefore, it is impossible to name or calculate its true price. There is nothing that can be closely compared and tied“, said the businessman.

The new owner assures that after the war he wants to turn Ukraine into a luxury hotel.

“I think we paid a fair price for it. After the war, I want to have a cool luxury hotel there. Probably “Four Seasons Ukraine”. Maybe there are others. I invest because I understand that this opportunity only comes once in a lifetime. In addition, by taking risks now, I understand that when peace comes, such assets will be worth X2, X3 from today’s assessment, and more after adjustment.“, said the businessman.

It is noteworthy that Krippa considered the possibility of acquiring another iconic building – the Kozatsky Hotel. But the condition of the property became unsatisfactory. Therefore, the businessman’s choice settled in “Ukraine”.

Business center “Parus”

Another iconic building known to Kiev residents and visitors to the capital. The Parus business center on Mechnikova Street is one of the tallest skyscrapers in Kyiv – 33 floors and 133.1 meters high. The building, built in 2006, has had different owners over the years, but now Krippa owns it.

The businessman did not disclose how much he bought at the business center. When a journalist asked if it was advisable to buy a glass skyscraper during the war, Crippa explained: “Parus” was sold even before the large-scale invasion of the Russian Federation. And now it is a profitable investment.

“Of course, during the war I received better commercial terms of the deal. The occupancy of Parus is over 90%, while the average occupancy of business centers in Kyiv is somewhere around 70-75%. “Sail” generates income. Obviously there are risks, but I believe in Ukraine, I hope that the war will end, and then this asset will return to pre-war levels“, stressed the businessman.

Of course, during the war it is necessary to consider all the risks in real estate. Krippa said that at the beginning of the full-scale Russian invasion, the rental price in Parus dropped, and even now rental payments have not returned to pre-war levels. However, the business approaches this issue with understanding.

“This is a living working business, no need to destroy anything here“, added Crippa.

In addition, foreigners are not yet ready to work in Ukraine.

“I am negotiating with a Spanish company to build a giant screen in the Burj Khalifa. I want to do the same with Parus. But the Spanish were not ready to work because of the war“, said the businessman.

Crippa said he had several strategies for valuing commercial real estate during the war, such as estimating profitability in different multiples, or by cost per square meter. The businessman admitted: he is mainly interested in iconic places and landscapes, which have no alternative.

“At Parus, I received a price per square meter that was more satisfactory for me, I saw that Parus has the ability to make a profit that will help my service payments, it is impossible to build a new business center”, explained Krippa in his choice.

Club base for NAVI

By buying real estate now, businesses hope to implement ambitious projects in the future. One of the most interesting acquired properties of Krippa is the Prominvestbank country complex in Koncha-Zaspa. The businessman bought it in January 2023 for UAH 311.1 million.

It is a luxury property, with luxuriously furnished villas, several guest houses, a spa center, a restaurant and a hotel on site. Why buy such an asset during a massive war? Krippa’s explanation: I have been observing this matter for a long time. We remind you that the businessman is the owner of the e-sports club Natus Vincere, or NAVI, one of the most successful in the world. Therefore, a complex country can be transformed into something ultra-modern.

“After the war, I would like to build a corporate club base there for NAVI, like, for example, our respected football club Dynamo Kyiv has. There is also an idea to build a SHA Wellness Clinic there. I will not wait until the end of the war, but now almost none of the international operators want to negotiate with Ukraine“, said the businessman.

In an interview with Forbes, Crippa said that his main real estate transactions take place in the UAE.

“The investments here are an echo of the investments I am making in Emirates. The difference between me and Ukrainian businessmen is that most withdraw money from Ukraine, but on the contrary, I bring it. This is my long-term strategy and support for Ukraine. A tribute to what the country gave me,” said the businessman.