ID: 20400

18.12.19

Commercial property and real estate in Ukraine

Standard One Terminal apartment hotel

Flexible investment in a property with a quarterly income and a payback period of 6 years

Location:

вулиця Ползунова, Київ, Украина, 02000

  • Price: $84 400
  • Property type: Business class apartment hotel
  • Project developer: KDD Engineering
  • Minimum cost of apartments: $ 84,400
  • Commissioning: 3 quarter 2022

Project launch prerequisites

In 2018, the number of tourists in Kyiv grew to 4.5 million people, which led to the occupancy of three-star hotels by 60%. Kyiv City Council predicts a further increase in the number of tourists, which guarantees the demand for apartments and hotel rooms in the central and precentral areas of the capital.

Location specifics

Standard One Terminal is located 200 meters from the southern railway station - one of the main transport hubs in Kyiv and Ukraine, where not only trains, but also international buses arrive.

The hotel is located 10-15-minute driveto the city center and 20-minute drive to Kyiv International Airport (Zhuliany). There are also buses to Boryspil International Airport and public transport to all corners of the capital departing from the station.

Standard One Terminal is 1-minute away from the Terminal Foods shopping complex, where there are restaurants of Italian cuisine (Semifreddo), Georgian cuisine (Mama Manana), beer restaurant (3b café Republic), Japanese restaurant (MenyaMusashi), McDonald's, Lviv Croissants cafe and new Novus supermarket opened.

Interior fit-out

The internal infrastructure of S1 Terminal meets the international requirements of chain hotels. The residents will have access to a fitness room and spa, conference room, co-working and a club-style restaurant with a gourmet cuisine. Also, the architects are developing projects of an exploited roof for lounge areas.

The apartments are selling out with a completely finished repair works and interior design in the style of minimalism. All the apartments will be equipped with a kitchen, bathroom, furniture and household appliances.

Investment model specifics

The“pool” business model was selectedfor investment in S1 Terminal. A “pool” is an association of investors whose profits are collected in a common fund and distributed among members. You receive a part of the profit of the entire hotel, regardless of the load of your apartment.

After the construction is completed, the apartments are under the control of the hotel operator. You do not need to do repairs, look for tenants, place advertisements on specialized resources, collaborate with travel agencies, look for personnel to maintain the cleanliness and functionality of the apartments - the management company takes care of everything. The management company also takes care of the payment and distribution of profits, and the external auditor monitors all operations.

The tasks of the investor are consigned to getting passive income, filing quarterly reports and voting for the annual financial plan.

Income on investment

Since the salesstarted, apartments are growing in price, and after putting the hotel into operation, you will begin to receive quarterly rental income. A quarterly income will be calculated based on the occupancy of the hotel for the reporting period.

The estimated cost of a daily room rental is planned to be $ 85 per day, and occupancy rate is about 60%. You can calculate the profitability using the online calculator.

S1 Terminal apartments are a highly profitable real estate investment and a flexible financial instrument. You can always sell your apartments to a management company or resell the unit as a ready-made business.

What is included in the cost of apartment hotel managing?

The management company undertakes all utility bills, utilities and maintenance services. All current repairs, changeover of linen and dishes,replacement of unpowered utilities are also included in the commission for managing the aparthotel. The cost of the management company’s services is 32% of the monthly rate.

How can an investor control the key indicators of his/her hotel business?

The investor will receive all the information in the form of quarterly electronic reports. Also, an external auditor will control the results of the management company every year.

Why is the cost of S1 Terminal apartments higher than some offers in other countries?

The S1 Terminal complex is a business-class apartment hotel with internal infrastructure, ready-made repairs, furniture and is under control of a hotel operator. The location in the busy part of the capital provides a high and stable yield, regardless of fluctuations in the seasonal demand for tourism services, typical for apartments in Georgia, Bulgaria or Spain.

Can I just live in an apartment?

Of course you can. But the period of residence is limited and it needs to be discussed with the management company. Also, during your stay in the apartment you will not receive rental income.

Can I get residence registration in the apartment?

According to the legislation of Ukraine, you can register only in the residential property. Apartments have a different legal status, so you cannot get registered in them.

However, an investment in apartments may become the basis for obtaining a residence permit.

Investment conditions

You can buy no more than two apartments per person. There are no restrictionsto the form of investment: you can buy apartments by proxy or apply for a legal entity.

An installment plan at 0% is available to investors. Additional information can be found in the catalog, obtained in online consultation or by phone.

Permits

  • Building permit
  • General Contractor License
  • Project Expertise
  • Town-planning conditions

Contacts

Ірина Собків

[email protected] +38 (067) 434 12 02

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