Investment proposal Complex development of the land on the territory of Kryvyi Rih non - functioning budgetary buildings * Presentation materials serve as a general introductory of investment opportunities in the city of Kryvyi Rih for potential investors . Some information needs more broad additional research and justification in order to be used for a comprehensive business plan. ** Access mode for pictures: http://media-cdn.tripadvisor.com/media/photo-s/03/35/df/c0/lotte-hotel-moscow.jpg
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Investment
proposal
Complex development of the land on the territory of
Kryvyi Rih non-functioning budgetary buildings
* Presentation materials serve as a general introductory of investment opportunities in the city of Kryvyi Rih
for potential investors .
Some information needs more broad additional research and justification in order to be used for a
comprehensive business plan.
** Access mode for pictures: http://media-cdn.tripadvisor.com/media/photo-s/03/35/df/c0/lotte-hotel-moscow.jpg
Zhovtnevyi district of Kryvyi Rih city – is one of the largest districts in the city with a population of around 132 500 people,
the area of the district is – 5 953 га (**).
High paying capacity of the population in the district.
Economic potential of the district is represented by 12 big industrial enterprises, including: JSC Central mining and
concentration complex, PJSC Kryvyi Rih iron ore complex, PJSC Sukha Balka, oduction enterprise, etc. (**).
Employed at big industrial enterprises of the district – 17 000 people *.
Employed at SMEs of the district – 2 534 people (***).
The total area of buildings for business rent – 15 201,7 sq. m. (***).
The project suggests complex development of the land on the territory of the non-functioning child care complex, maternity
house and adjacent in the area of Kryvyi Rih city residential blocks of “44th Kvartal” (in Dnipropetrovska oblast)/ The total
area available is around 6 ha. The project suggests the building up of a new multi-functional complex with business center
and diversified trade-entertaining infrastructure on the total area of 2500 sq. m. of the described territory under beneficial
conditions for investor * (in case of recreational development of the adjacent area of around 2000 sq. m.).
The project requires design estimates for construction and building works.
The cost of the project (in the initial period) 159 363 943 UAH. Project implementation resources – investors own funds.
Description of
the project
Structural
advantages of
the location
Status of the
project
Budget
Indicator Unit Value
Discounted Payback Period, DPP year 14,9
Net Present Value, NPV thousand UAH 53 433, 588
Internal Rate of Return, IRR % 14,98
Profitability Index, PI 1,34
Budget (own capital), in the initial period thousand UAH 159 363, 943 грн.
** Source: official web-site of Zhovtnevyi district Administration of Kryvyi Rih City Counci
*** Source: Zhovtnevyi district Administration of Kryvyi Rih City Council
Key project indicators
Zhovtnevyi district – is one of the largest in the city.
The population of the district (132 500 people) owns high paying capacity.
The list of functioning trade-entertaining establishments:
– trade-entertaining complex «Тerra»;
– children entertaining complex «Fidget»;
– children entertaining complex «Jumanji».
The city does not have an establishment of the type: «multi-functional
trade-business center of A/B class».
* Source – Zhovtnevyi district Administration of Kryvyi Rih City Council. Access mode – http://www.zhrrkrog.dp.ua/node/13
** 280 UAH per 1 sq. m.
*** 130 UAH per 1 sq.m.
The building up of the modern multi-functional complex with business center (A/B type) and diversified infrastructure on the territory
of “44 kvartal” in the Zhovtnevyi district of Kryvyi Rih city (Dnipropetrovsk oblast) with the following features:
Suggested solution
Effect from
implementation
Economic effect (for investor) Social effect (for the city)
Profit from business operational activity (lease/selling of the areas to subjects of
economic activity)
Expansion of business-contacts and opportunities
Synergic effect from interaction with companies, operating in the business center
Possibility to conduct business in personally-owned premises
Business infrastructure development in the city
Creation of new jobsites
Increase of municipal budget receipts as a result of
business operational activity
Recreational development of the adjacent area of around
2000 sq. m.
Description of the
contemporary situation*
– trade- entertating area (mall), 1 – 4 stories, area of around 10 000 sq. m. Accounting for the average market rent cost per sq. m. (**), possible annual
revenue from operational activity of the owner might be around 33,6 mln. UAH;
– offices, conference halls for lease, stories 5 – 9, area of around 6 500 sq. m. Accounting for the average market rent cost per sq. m. (***), possible
annual revenue from operational activity of the owner might be around 10,14 mln. UAH;
– hotel of 3 – 5 stars, possible annual revenue from operational activity of the owner might be around 3,36 mln. UAH;
– premium class restaurant with a panoramic view at the 12th story) - possible annual revenue from lease – 2,5 mln. UAH.
Transfer of the land to the investor on beneficial conditions (1 UAH per year), in case of recreation development of the adjacent territory
of an area of 2000 sq. m. (approximate volume of initial investments – 4 mln. UAH).Special Condition
* In case of the recreation development of 2000 sq. m. of the adjacent area by the investor, the land will be given on the privileged basis (1 UAH per year).