ID: 20402

04.12.19

Investment projects in Ukraine

Promprylad.Renovation in Ivano-Frankivsk

Impact investment in the creation of an innovation center on the basis of the old plant

Location:

Akademika Sakharova Street, 23, Ivano-Frankivs'k, Ivano-Frankivs'ka oblast, Ukraine, 76000

  • Sector: Строительство и недвижимость
  • Business activity: Смешанная недвижимость
  • Stage: Ранние стадии (Early Stage)
  • Project cost: $30 000 000
  • Required investments: $1 000
  • Type of investment: Участие в капитале
Promprylad.Renovation in Ivano-Frankivsk

Promprylad.Renovation in Ivano-Frankivsk

Impact investment in the creation of an innovation center on the basis of the old plant

Promprylad.Renovation is an investment project on creating an innovation center on the basis of the old plant in the center of Ivano-Frankivsk, and is involved in four areas of the region development: new economy, urbanism, contemporary art and informal education.

Promprylad.Renovation is not aimed at a single investor. Everyone can join the project, with a minimum investment of $ 1,000 equivalent, the slots of $ 100,000, $ 250,000, $ 500,000 and $ 1 million are set for Marquee investors.

Promprylad.Renovation is an impact investment project. This means that in addition to the return on investment and profitability, the project has a positive impact on the development of the city and the region.

The project is planned to restore more than 28 thousand square meters of space in the operating buildings and the construction of two more - 10 thousand square meters.

40% of the total area will be occupied by offices. On the rest of the territory there will be located workshops, training and children's centers, hotels and restaurants, community initiatives, etc. Up to 30% of the area will be provided to community, cultural and social initiatives at a concessionary rental rate, which activities coincides with the project vision.

Over the course of five years, the project will attract over UAH700 million in impact investment from private investors and organizations to phase in six buildings and a park.

As for today, the project has raised over $ 4.1 million in investments and has over 280 investors.

The profitability of the project is competitive with other available financial instruments in the market.

Using the methodology proposed by PACT, Social Return on Investment (SROI) was calculated: every dollar invested in a pilot project would generate five dollars of social impact.

Project partners

The project is a part of the Ivano-Frankivsk development strategy, supported by a number of partner organizations that have joined as low bono and pro bono investors, grantors and contractors. In particular:

  • Teple Misto charitable foundation
  • Insha Osvita non-governmental organization
  • UCU Lviv Business School (LvBS)
  • MitOst (Germany)
  • PACT (USA)
  • International Renaissance Foundation
  • Stanford Research Institute (SRI) International

The project has also received support from the governments of Sweden and Canada. Sweden is one of the largest contributors to the pilot floor of Promprylad.Renovation.

The project team

The initiator and leader of the project is Yuriy Fylyuk, an Ivano-Frankivsk entrepreneur and initiator of social projects, the most famous of which Urban Space and Teple Mistoare some of the best examples of public platform in Ukraine.

The project team includes specialists with diverse business experience and practices of social entrepreneurship and community initiatives (23 restaurants, Teple Misto, Urban Space 100, etc.).

Investment model of the project

The structure of investment allows to attract investments from small and large private investors, companies, public organizations and foundations.

There are two investment logics:

  • Invest at the stage of attracting investments and receive dividends in the form of passive income after project implementation.
  • Invest at the stage of attracting investments and go out the project at any time by selling your share on the secondary market.

Advantages of investing in this project:

  • located in the central part of the city, which is always crowded;
  • a large number of rental requests, which exceeds the planned space already;
  • the increase in the value of the asset as the project progresses;
  • social significance of the project;
  • the opportunity to affiliate to a community of good will investors.

You can learn more about the investment benefits from the presentation.

Stages of renovation

2015 - the vision, goals and overall concept of the project are formulated, a group of project partners is formed.

2016 - the economic potential of the region and the history of the Promprylad plant are being researched, an architectural concept is being developed, and a pilot third floor project is being created.

June 2017 - commencement of the reconstruction of the third floor of the building on Sakharov Street as a pilot project to test the hypotheses and work out the reconstruction process. $ 1.3 million of investment was raised for economic research and pilot project launch.

April 2018 – Pilot project launch as an example of reconstruction of the whole plant. 1800 square meters successfully illustrate the possibility of interaction in the triangle "community - business - city".

February 2019 - Promprylad.Holding LLC has signed sale and purchase agreement on acquisition of 82% of Ivano-Frankivsk Plant Promprylad PJSC shares. Upon arrangement reached, the purchase agreement must be closed by the end of the current year, when the last payment will be made according to the schedule.

April 2019 - the tenants have completed the reconstruction of two more floors for office space. Thus, 5800 square meters in total have been reconstructed.

December 2019 - Final purchase of Promprylad plant by Promprylad.Renovation project. The beginning of a large-scale reconstruction of the premises of the plant.

January 2024 - scheduled completion of the last phase of reconstruction, extensive start-up of the facility and start of dividends payment.

Sources of income

The main sources of income will be:

  • rental income from office space and special purpose areas;
  • hotel complex operation;
  • event ticket sales, short-term rental of exhibition and conference facilities;
  • revenue from the sale of the project franchise to other cities and countries.

Legal model of the project

A number of legal and consulting companies have been involved in developing the legal model of the project: Sayenko Kharenko and Partners, Morris Group, Bridges Consulting, Ernst & Young, Arzinger.

The structure of the Promprylad.Renovation project management is as balanced as possible to ensure return on investment and implementation of social function.

Legal entities may invest in the Corporate Investment Fund (CIF) without restrictions, while natural entities have a limit of UAH 1,827,000, according to the Ukrainian legislation. Therefore, we have developed a legal model that is valid in the Ukrainian legislative environment, which allows natural entities to invest from $ 1000 in Promprylad.Investments LLC. LLC owns shares of Corporate Investment Fund, which in turn owns 70% of Promprilad.Holding LLC.

More details about Promprylad.Renovation project can be found on the official website, or by downloading a presentation.

Invest here!

  • Sector: Строительство и недвижимость
  • Business activity: Смешанная недвижимость
  • Stage: Ранние стадии (Early Stage)
  • Project cost: $30 000 000
  • Required investments: $1 000
  • Type of investment: Участие в капитале
  • Location

    Contacts

    Менеджер по роботі з інвесторами

    investment@promprylad.in.ua +38 067 923 34 60

    Connect with us!

  • Sector: Строительство и недвижимость
  • Business activity: Смешанная недвижимость
  • Stage: Ранние стадии (Early Stage)
  • Project cost: $30 000 000
  • Required investments: $1 000
  • Type of investment: Участие в капитале
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