The development company Von der Heyden Group (Valletta, Malta) is entering the Ukrainian market and plans to invest $50-100 million in projects for the construction of hotels and offices in Kyiv and Lviv in the next three years…Continue reading
Von der Heyden Group, an international investment firm on the European Real Estate market with a value of over half a billion euro in aggregated invested assets, has opened new offices in Kyiv in Q4 2019 to establish multi-million euro investments in Ukraine. The Group is renowned for being a first mover in emerging markets, creating landmark Class A office buildings, running award winning hotels and delivering superior returns from real estate investment.
The Group, founded in Germany in 1989, will invest around €50 million in commercial and residential properties in Kyiv and Lviv during its preliminary phase, aiming to increase this to up to fourfold in its mid-term portfolio expansion in a favourable market.
“Ukraine’s market is rapidly maturing, as the country continues to strengthen its institutional framework and align its economy with that of the European Union. For these and other positive reasons it tops the Von der Heyden list in offering the right investment opportunities. As we have done in Poland, our Group intends to make a lasting mark in Ukraine by being one of the first international real estate investors.”– Robert Rottinghuis; Chief Executive Officer, Von der Heyden Group
The new offices in Ukraine marks the Group’s further expansion as an international private investment and real estate firm with representative offices in eight countries.
The Von der Heyden Group has appointed a local expert team, formed to expand the Group’s real estate portfolio led by Mr. Dmitry Havrylenko who assumes the role of Chief Executive Officer in Ukraine. Mr. Havrylenko until recently held the postion of National Director and head of the Ukrainian office of global investment management firm, Jones Lang LaSalle (JLL) and has been a valued counsellor to a number of leading professional services and investment firms. Having attracted more than USD 1 bln for Ukrainian companies, the Group’s Ukraine office CEO comes with over 15 years of experience in investment banking, private equity and real estate investments.
Tatyana Yarmolitskaya, a real estate professional with over 15 years of experience in real estate finance, investments and asset management joins the Von der Heyden Group as Investment Director. Until recently Ms. Yarmolitskaya held the role of Head of Capital Markets at the Kyiv office of Jones Lang LaSalle (JLL).
Daniel Parsai, a lawyer by background with specialization in local and international taxation also joins the team as Legal & Tax Director, having worked on a variety of M&A and real estate transactions for multinationals and international institutional clients. Until recently Mr. Parsai held the role of Associate with the tax practice of leading Ukrainian law firm, Arzinger.
According to the report, the Von der Heyden Group has appointed a local expert team, formed to expand the group’s real estate portfolio led by Dmitry Havrylenko who assumes the role of Chief Executive Officer in Ukraine. Havrylenko until recently held the position of National Director and head of the Ukrainian office of global investment management firm, Jones Lang LaSalle (JLL). Ex-Head of Capital Markets at the Kyiv office of Jones Lang LaSalle (JLL) Tatyana Yarmolitskaya joined the Von der Heyden Group as Investment Director. Ex-Associate with the tax practice of leading Ukrainian law firm, Arzinger, also joined the team as Legal & Tax Director.
Von der Heyden Group, an international investment firm on the European Real Estate market with a value of over 650 mln euro in aggregated invested assets has been granted an asset management license by the National Securities and Stock Market Commission (NSSMC) of Ukraine. The registered license establishes the Group, with a long track record of being a first mover in evolving free markets, as a pioneer to the investment potential that the Ukrainian real estate market offers. The license also marks the Von der Heyden Group as one of the very first foreign-owned real estate investment firms to obtain an asset management license in Ukraine over the last decade.
The license allows the Von der Heyden Group’s new asset management subsidiary to launch a real estate fund aimed at raising capital through the private placement of shares to professional investors with a minimum investment of 250k euro.
Robert Rottinghuis, Chief Executive Officer of the Von der Heyden Group:
The economic growth over the past 5 years coupled with the unrivalled locations of Kyiv and Lviv for real estate investments and developments has shown an increasing demand for high quality commercial, industrial and residential facilities. In an unprecedented climate, our fund is designed to be one of the building blocks for institutional investors’ continued adoption of real estate assets in upcoming markets. It provides a unique opportunity to secure competitive target returns and stable cash flows for our Group as well as for our limited partners.
The Von der Heyden Group have established a best-in-class local team with extensive real estate management experience. The fund’s annual net Internal Rate of Return (leveraged, after taxes and fees) is targeted to be in the double digits over the seven-year life of the fund. The Von der Heyden Asset Management Company enables the Group to manage its own sponsored funds as well as that of other institutional investors thus providing exposure to a rapidly developing and upcoming real estate market.
The Von der Heyden Group Asset Management Company in Ukraine marks the Group’s further expansion as an international private investment, asset management and real estate development firm with representative offices in eight countries.
Dmitry Havrylenko, CEO of Ukrainian office Von der Heyden Asset Management Company tells us about his plans for foreign investments in the Ukrainian real estate market
Von der Heyden Group (VDHG)
Von der Heyden Group is an international investment firm with over 30 years of experience in developing and investing in Class A buildings, residential and hotels projects in Germany, Poland, Spain, Portugal and Malta with the total value of more than 600 mln EUR in invested assets. The main pillars of business of the Group are full cycle classical real estate development, investment in existing assets, real estate consulting and IBB Hotel Collection, an international hospitality franchise.
Entering the Ukrainian Market
In 2020, VDHG established a new branch of business. We became one of the very first foreign-owned real estate investment firms to obtain an asset management license in Ukraine over the last 10 years. This is complementary to the Group’s track record of being a first mover in emerging markets. In Poland, VDHG was one of the first foreign real estate developers and investors who believed in the local market. Today, the group is building the highest buildings in Poznań, the last of four phases as developer and co-investor with the City of Poznań after Poznań Financial Center, Andersia Tower and Andersia Business Center, completed in 2001, 2007 and 2012 respectively. Another recent successful investment was the Blue Tower project at Bavaria Towers in Munich (an A class office building with a total area of 24,000 m2), which was sold at a record capitalization rate for this market. Such examples, two of many, is testament to the success that could be repeated in Ukraine.
In the fourth quarter of 2019, VDHG established an Asset Management Company formed with a local team of professionals in Ukraine and received the asset management license. Today we are creating our first closed-end real estate investment fund, which will combine the Groups’ own investments as well as those of professional investors. Our specialization is to unite 2 markets: real estate and asset management.
Closure of the first round of investments is planned for the first half of 2021. The main focus of the group is assets in the Class A office segment. Although many predict the obsoletion of office buildings, data proves that the Kyiv office market is still significantly underdeveloped and has 1.5-2 times the growth potential in terms of offices saturation compared to other CEE capitals, primarily to be driven by the growth in the IT and logistics sector. Our asset management company is also interested in residential real estate projects in advanced stages of development that can be realized with high-powered local players.
Investing in Ukraine
Our interest in the Ukrainian market is underlined by its underestimated potential and opportunities.
Factors such as economic growth in the last 5 years, a small saturation of a quality office and residential real estate, the formation of a stable middle-class due to growth in IT specialists affect the demand for the quality objects in these segments resulting in a higher yield in comparison to other developed counties.
|Total amount of office options, m2||
~ 2 mln (Kyiv)
> 6 mln (Warsaw)
Amount of direct foreign investments in 2019, bln $
Trends in the world of investments and Von der Heyden’s Liberty Real Estate Opportunity Fund
In the third quarter of 2020 the total amount of global investments was USD 150bln.
This records 50% less than the previous year. Implementations of lockdowns showed no affect in trends in real estate types popularity with 33% of investments being realized in the office sector in 2020 against 35% in 2019.
Our extensive research and findings prove that Real estate continues to be a conservative asset. Our work focuses on Ukraine’s future development, where a favorable scenario will increase the value of local assets. As a result, the potential could reach the level of Warsaw, Prague and Budapest.