The conflict related with the construction in Pushcha-Vodytsia is over - the State Property Fund

The arrangement has been reached to resolve the conflict related with the construction in Pushcha-Vodytsia – the State Property Fund, the SE “Agricultural Plant “Pushcha-Vodytsia” and Stolitsa Group have agreed to resolve the conflict situation related with the construction of the residential complex “Varshavskyi”. Construction investors will receive their housing and their property rights will be protected. The State will have an additional 60 thousand sq. m. of real estate, which is equivalent to 2 billion UAH or 1,200 apartments. The developer reimburses the land tax funds (the costs of obtaining permits in the amount of over UAH 65 million) paid by the State Enterprise. At the same time, the already built objects will be assigned postal addresses after the developer provides the originals of the investment agreements.

Dmytro Sennychenko the Chairman of the State Property Fund of Ukraine announced this. “For the last year and a half, the State Property Fund has been working on resolving the conflict situation related with the construction on the SE “Agricultural Plant “Pushcha-Vodytsia” territory. The agreements concluded in 2012-2015 between SE and the companies affiliated with Stolitsa Group did not meet the interests of the State. The difficulty was that a large number of individuals bought apartments in these residential complexes and their interests were at stake,” Dmytro Sennychenko stressed.

According to him, a compromise has been reached between the SE “Agricultural Plant “Pushcha-Vodytsia” and Stolitsa Group.

“According to the arrangement, the base of real estate distribution between the developer and the State is changed - from 5% of living space to 10% of the total real estate area, including commercial for all contracts where construction has not yet begun. And, under contracts where construction is underway and the area is already owned by private owners, the SE “Agricultural Plant “Pushcha-Vodytsia” will receive interest not only from residential but also from commercial real estate. Thus, the company will receive 60 thousand sq. m. more than provided by the old contracts. This is approximately UAH 2 billion in cash equivalent, or 1,200 apartments. The developer also undertakes to reimburse the land tax (the cost of obtaining permits) paid by the State Enterprise. In total, it is about UAH 65 million,” Dmytro Sennychenko said.

He emphasized that the State Property Fund defended the position of protecting three parties - the State, people who bought apartments from the Stolitsa Group and Kyiv residents standing in the apartment queue.

“The Fund managed to defend the state interests. We have protected investors. Unfortunately, they became hostages of the situation. Now their property is secured from any encroachments in the future,” Dmytro Sennychenko said. He stressed that the issue of assigning postal addresses to the houses already built in Pushcha-Vodytsia was finally resolved, as it depended exclusively on the developer. “Stolitsa Group yesterday handed over to the State Enterprise the originals of the contracts, which were immediately notarized. Today the director of the SE “Agricultural Plant “Pushcha-Vodytsia” immediately appealed these documents to the authorized city authorities,” Dmytro Sennychenko said.

According to him, the State Enterprise “Agricultural Plant “Pushcha-Vodytsia” and the developer signed the final protocol of negotiations, which recorded all the agreements.

“This is the result of the good will of the two sides, which exhausts the conflict, restores justice and protects the rights and interests of the State, investors and Kyiv residents,” Dmytro Sennychenko stressed.