23.12.2019

Ukraine on the global investment map. Experts discussed the ways of investment attraction in commercial projects

A round table discussion as part of Ukraine at MIPIM dedicated to Ukraine on the global investment map took place on December 4th in the Holiday Inn Kyiv.

The key focus of the event was questions related to activities, which allow representing the investment attractiveness of the country in the world and improving the business climate inside the state. Participation in niche business exhibitions, communication with investors in local commercial, city, and national projects, work on legislation, protection, and support of investors at all levels – in synergy, all these actions lead to positive results.
 
Speakers of the event told about investment projects and ways of the investment attraction into them, discussed real success stories, issues, and solutions, cases useful for other real estate players aimed to attract international investors.

Work with international investors: the right goal leads to a good result

To start with, Ukrainian real estate business unites at the International investment exhibition MIPIM that takes place annually in Cannes – mentioned Anna Nestulia, CEO Invest in Projects (B2B Marketing Agency) and Founding partner of Ukraine at MIPIM.

«I am personally as an organizer of Ukrainian delegation at MIPIM together with my colleagues, believe that the country together with business should be more strategic and consistent in such international initiatives, as the foreign business community, based on our experience, still knows little about the country», – she says.

Recently Prime minister of Ukraine Oleksiy Honcharuk declared that the government aims to attract $ 50 billion of foreign direct investments in 5 years. It is an ambitious goal depends on many factors and is achievable only in case of accumulation of all efforts and stakeholders. Currently, the volume of FDI is significantly lower. According to the World Bank, during the last 5 years, Ukraine attracted about $17 billion.

Head of capital markets of Cushman and Wakefield Volodymyr Mysak presents a global real estate investment overview. In spite of the big potential of the country, it still has a smaller interest in investors comparing with neighboring countries. Thus, the volume of investments in commercial real estate in 2018 in Poland was $7 billion. At the same time, Ukraine attracted $300 million.

Dmytro Dopiro, the official representative of MIPIM in Ukraine states that a specific example of Poland demonstrates that a consistent approach allows succeeding.

This country works with investors on a regular basis. One of the major tools is participation in MIPIM. In 2019 there were 12 Polish cities. The budget of small Poznan at MIPIM is over 100 000 euros per annum. Usually, the budget is fundraised by the city government and business. 

At the same time, Ukraine in Cannes was represented only by Kyiv stand, which is also considered as a positive result. Kyiv mayor, as well as representatives of business, who showcase commercial investment projects internationally, supports Ukrainian capital at MIPIM.

Another important platform for international promotion is The World Economic Forum in Davos.

The initiator of Ukrainian House Davos, a well-known investor, founder, and managing partner of Aventure Capital Andriy Kolodyuk told that the launch of Ukraine House Davos was possible only due to private capital. As a result, it reflects the character of the events, which take place there. He believes, it is important to unite at the world business events and work as partners but competitors.

The session with mayor Vitalii Klitschko together with his brother boxer and investor Volodymyr Klitschko was one of the successes. Many foreign investors were surprised to learn that Ukraine has three unicorns. After such a disclosure topic of conversation usually change. People who talked about Ukraine in the context of developments in the east started to discuss pragmatic business cases.

In January 2019 Davos hosted 145 Ukrainians. 4 years ago – 15.

Yuriy Kryvosheya, president and managing partner of Toronto-Kyiv, head of Supervisory Board of Ukraine at MIPIM mentions three world events important for work with investors. Among them are Forum in Davos, MIPIM and EXPO 2020.

As one of the most active participants of MIPIM, he told that there were a lot of stereotypes about the exhibition. Many decision-makers of investment companies are at MIPIM. Right goals and well-done homework allow arranging useful meetings that result in real business cases.

Yuriy also told about the evolution of technologies in Cannes. There you can see significant competition between cities. Kyiv can be the next goal for investors after Polish cities together with Moscow or Istanbul. Today at International exhibitions one can meet investors who have been keeping an eye on Ukraine for many years considering it as a very promising investment destination. For instance, they even mentioned that Ukraine could be the next “unicorn country”.

Investment projects: key ingredients for success

Promprylad.Renovation is a project based in Ivano-Frankivsk, which goes far beyond real estate. Its concept is supported by the Canadian and Swedish governments, UNO and many other governmental and private organizations. It is an innovative center on the premises of the old factory operating for regional development and including new economy, urbanism, contemporary art, and education.

As part of Promprylad.Renovation there are commercial organizations, as well as social projects to unite entrepreneurs of small and medium businesses.

Yuriy Filyuk, CEO Promprylad.Renovation tells that gradually step-by-step using principles of crowdfunding investments the project keeps growing and developing. As of today, the projects attracted $ 4 million.

From the very beginning Promprylad.Renovation is based on international criteria, which attracts foreign investors and partners. Next year, the project will be represented in Cannes.

UNIT.City has been showcasing at MIPIM for many years. Vitaliy Melnyk Vice-President of UDP tells that he together with representatives of many other Ukrainian companies, hear skeptical attitude towards Ukraine. Of course, investors assess the project. Though, anyway, they want to be part of the ecosystem. Investors have a cautious interest even in the successful cases located in Ukraine, risky, in their opinion, market. To change the negative perception of the country is possible only uniting efforts. It is a joint goal of government, society, and business.

First time at MIPIM, UDP participated with a separate corporate stand. Last several years, the company supports the city’s stand. Vitaliy believes that it does not matter whether you come with a corporate stand or participate at the joint stand. If you are prepared for the event, have meetings, programs, presentations, you will have good results.

Government prepares investment magnets and improves legislation

Member of Verkhovna Rada of Ukraine, representative of the Cabinet of Ministers of Ukraine in Verkhovna Rada of Ukraine Olena Shuliak presents the upcoming legislation changes. The accelerated law adoption by new Parliament brings results, she believes. Some legislation changes to ease doing business and provides more transparent mechanisms for investors that have been already adopted and put into action.

Recently President and Prime minister presented so-called Ukrainian investment magnets to be promoted among the International investors. Among them are Promprylad.Renovation, Chernobyl, and Khortitsa. Olena believes that these projects should be used with full potential. Though, objective obstacles for investors should be overcome. Among such pain points are corruption, low credibility of the justice system, lack of land reform, shadow economy.

There are some new conditions for this. For instance, the initiative of the newly incorporated Ministry of Digital Transformation to launch platforms, which minimize contacts of entrepreneurs with officials, will disable corruption schemes. 

Olena also thinks the upcoming year will be the year of the big constriction as new roads, large infrastructure projects planned to be built. Also, the government initiated the construction of 100 new schools, kindergartens and stadiums. 

Ukraine at MIPIM will present all these improvements, initiatives, as well as new innovative local projects

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