DebtX, the largest marketplace for loans, said today that it will sell a $100 million commercial real estate portfolio for a major bank in Ukraine.
The portfolio includes two office buildings in central Kiev and a large regional shopping center. The Kiev office buildings are Class-A total 19,000 square meters (204,000 square feet). The shopping center, which is operational, is 65,000 square meters (700,000 square feet) and includes a partially constructed expansion. The balance of the portfolio consists of residential, land, office, and industrial properties located primarily in Kiev and Dnipro.
Indicative bids are due May 10 and final bids are due May 31. The May commercial real estate transaction will be followed by additional sales for the Ukrainian Deposit Guarantee Fund in 2018.
"The sale of this $100 million 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."
DebtX has been operating in Ukraine since 2016, with the goal of bringing new capital into the market to buy assets from banks and government agencies. DebtX, which conducted its first loan sale in Ukraine in 2017, estimates there are at least US$20 billion 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."
About DebtX DebtX operates the world's most liquid marketplace for loans. Through its loan sale advisory, DebtX maximizes loan sale proceeds for financial institutions and government agencies. DebtX also provides loan valuation, analytics and market data for regulatory and audit purposes. For banks preparing for CECL, DXCDA is a fully outsourced, independent service that saves time and money. For syndication, agency, and loan sale professionals, DebtX provides a suite of web-based deal management solutions. For loan originators and risk managers, DXScore® is the firm's credit rating system for commercial real estate loans. DebtX is based in Boston, with offices across the U.S., South America, Europe and Asia. Call 617.531.3400 or visit www.debtx.com. Follow DebtX on Facebook, Twitter and LinkedIn.
