Igor Mazepa about President Hotel (Kyiv) privatization and its possible risks
Concorde Consulting is making every effort for the hotel complex in Kyiv’s center to be placed for direct sale. However, there is a high risk that the offer will be limited to just the rental agreement. Igor Mazepa stated. Concorde Capital is currently fulfilling its responsibility as the investment adviser for the President Hotel (Kyiv) to be sold as part of the Big Privatization based on the new progressive law.
It’s still unknown what we will sell. It will be either a large hotel complex, attracting a large number of strategists and international investors, or a simple rental agreement that offers a revenue stream until 2034. We will finalize our perspective in the nearest future after gaining information from our legal partners Redcliffe Partners.
According to the existing documents we could see that the President Hotel (Kyiv) is not involved in the hotel business, but rather its main revenue source is rental payments from its private operator owing to a 25-year rental agreement, signed in 2009, which included the hotel itself and its surrounding territory. Our legal partner Redcliffe Partners is currently studying this rental agreement in detail and, in particular, the possibility of its termination.
Our goal is not to limit the tender to just the right to own the rental agreement, but the entire hotel business,” said Igor Mazepa.
Once we receive the detailed analysis of the rental agreement from Redcliffe Partners, we will draw our conclusions on what we will be selling exactly. As well as will finalize the sales strategy that we will present to the State Property Fund and the field of potential competitors to acquire the given asset will become better understood.
Igor Mazepa commented the President Hotel (Kyiv) privatization risks for information agency Interfax-Ukraine http://sub.interfax.kiev.ua/rus/tape/295592796
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