Arcona Property Fund acquires prime development site in Kyiv

Arcona Property Fund (APF), a Euronext-listed real estate investment fund operating across Central and Eastern Europe, has finalized the acquisition of a prime development site in central Kyiv. The seller, AIM London-listed Secure Property Investment and Development PLC (SPDI), has transferred ownership, marking what is believed to be the first real estate acquisition by a Western private fund in Ukraine since the Russian invasion of 2022.

The 0.54-hectare site, located on Kyianovski Lane in the Shevchenkivskyi district, is just 500 meters from Lvivska Square and is well-positioned for high-end residential development. The transaction, valued at USD 2 million, was completed through a combination of cash and APF shares. This acquisition finalizes APF’s purchase program from SPDI, originally agreed upon in 2020, which included six assets across Bulgaria, Romania, and Ukraine.

Commenting on the transaction, Guy Barker, Director of APF’s Managing Board, emphasized the fund’s confidence in Ukraine’s long-term prospects.

“Although the purchase was part of a package deal agreed in 2020, certain sale conditions remained unfulfilled when the Russian invasion began in February 2022. This prompted a reassessment of both the acquisition and pricing,” Barker explained.

He further noted that APF has closely monitored military, political, and economic developments in Ukraine and now believes the time is right to proceed with the deal. The acquisition reflects APF’s optimism about Ukraine’s future recovery and investment climate.

Barker also acknowledged the professionalism of the Kyiv-based advisors involved in the transaction, including law firms Vasil Kisil (representing APF) and WTS (representing SPDI), as well as valuation experts at Nexia DK.

APF intends to determine the best future use of the site before working on planning and permitting approvals. The fund is considering either selling the property to a developer or entering a joint venture with a local partner to develop the site.

Echoing historical investment wisdom, Barker referenced Nathan Rothschild’s reputed advice from 1810: “Buy when the cannons are firing, and sell at the sound of trumpets.”

The acquisition signals a pioneering move by Western investors into the Ukrainian real estate market and underscores Kyiv’s resilience as an attractive investment destination despite ongoing geopolitical challenges.