Investment company S1 REIT, which operates under a real estate investment fund model, is expanding its portfolio with the launch of a new fund, S1 Plaza Pozniaky, focused on commercial rather than residential real estate.
The new fund will include the commercial premises of S1 Plaza Pozniaky, a shopping center project with a total area of around 5,000 square meters currently under development in Kyiv’s Darnytskyi district, near the Pozniaky metro station and Lake Sonyachne. The project forms part of a large-scale residential development by Standard One, and its footfall is expected to be driven both by residents of the complex, which will include more than 750 apartments, and by the area’s heavy pedestrian traffic.
The regulator has already registered the fund’s issuance of investment certificates totaling UAH 600 million, comprising 6 million certificates with a nominal value of UAH 100 each. This means investors will be able to purchase a stake in commercial real estate through the fund.
The key feature of the new instrument is its significantly lower entry threshold. While S1’s previous funds required minimum investments of around UAH 122,000, investors in S1 Plaza Pozniaky will be able to start from just UAH 1,000, with additional investments from UAH 100. This makes the product more accessible to retail investors.
The company projects annual returns of 10.4% in foreign currency terms. At the same time, dividend payments are expected to begin at an early stage, even before construction is completed, through the fund’s capitalization and asset management model. Later, the main cash flow is expected to come from rental income generated by the shopping center’s retail premises.
According to the company, more than 60% of the shopping center’s space has already been preliminarily reserved by Ukrainian and international retail chains, which is expected to support future occupancy.
Sales of the new fund’s investment certificates are expected to start in May.
S1 REIT positions itself as Ukraine’s first operator of collective investments in income-generating real estate, allowing investors to become co-owners of properties and earn income without managing the assets themselves. In addition to the new fund, the company’s portfolio already includes S1 VDNH and S1 Obolon.
