Building of the century: will it be possible to sell the Bolshevik plant and what will appear in its place

Building of the century: will it be possible to sell the Bolshevik plant and what will appear in its place

They plan to sell the oldest enterprise in the capital, but anyone who wants to buy it will have to fork out for a huge amount, which will somehow need to be fought off. Wednesday, October 27, could be a historic day for the First Kiev Machine-Building Plant “Bolshevik”. On this very day, as the State Property Fund of Ukraine announces, the privatization of the plant will take place, which at one time was considered the pride of the domestic machine-building industry, but now it is in a dilapidated state.

The SPFU’s bravura statements look optimistic, but even a cursory glance at the situation makes it clear – no privatization will return the enterprise to its former glory, and indeed – will not launch it at least in some form.

 “Telegraph” decided to figure out if there is any future for the oldest in the capital, First Kiev Machine Building plant “Bolshevik” and what are its chances of becoming … a new residential complex.

1.39 million UAH for its former glory

July 30 State Property Fund of Ukraine, which has been in charge of the plant “Bolshevik” since 1996 , said that he had decided on the starting price of the enterprise for the future auction and privatization conditions. Among other things, they talked about preserving the main types of activities, paying off accounts payable, as well as paying off wage arrears to employees.

Requirements from the SPFU, I must say, look very serious, because in addition to the auction price of the enterprise, the new owner will have to pay off his debts, and this is more than UAH 500 million, of which 369 million are tax arrears.

Moreover, the profit received by the enterprise does not even cover the costs of maintaining the territory and taxes. At the same time, a prerequisite for the SPFU is to preserve the profile of the enterprise, which will require a hefty financial investment from the buyer. In total, we are talking about more than UAH 1.9 billion (1.4 million for the redemption and 500 million for the repayment of debts)

Nevertheless, there is one loophole that can make privatization very profitable, but may entail for itself the “softening” of privatization conditions.

There was an industrial zone – a residential complex has become

Redevelopment or renovation of industrial zones – this is the name of the process in which developers buy industrial enterprises located in a good place from the point of view of future residential construction and erect residential buildings instead of industrial buildings.

There are enough examples of such “re-profiling” in our country. Among them – the history of Odessa “Tochpribor”, and PJSC “Kiev Electric Transport Plant”. In both cases, we are talking about the development of industrial zones with residential buildings. There are plans for the development of industrial zones in Odessa and Kharkov.

In general, as Andrey Ryzhikov, managing partner of the development company DC Evolution, explained to Telegraph, the renovation of industrial zones has its advantages for the developer. The main one is that the purchase of control over a legal entity that owns land or real estate allows solving the same “land” issue. But there are also disadvantages.

What will happen instead of the plant?

It is interesting that in March 2021 the director of Bolshevik Leonid Kuprin argued that “there are several options for organizing production after privatization, but the most probable is the postponement of the existing plant equipment outside the city of Kiev – to the production site in Zhashkiv. ”

That is, the same version of the renovation of industrial zones with the transfer of production outside the city sounds, which is discussed by the managing partner of the development company DC Evolution Andrey Ryzhikov. {{ 1}} The Bolshevik plant itself today is about 35 hectares at the intersection of Vadim Getman Street and Pobedy Avenue in the Solomensky district of the capital, on the very border with Shevchenko.

The declared by the State Property Fund of 1.39 billion hryvnyas as the initial price of the plant at a future auction is equivalent to approximately 52 million dollars, or approximately 1.5 million dollars per 1 hectare. Obviously, the Fund also understands very well that the main asset of the enterprise today is land in the capital. And they expect that it will attract the future buyer, because even its director does not believe in the future prosperity of the plant as a machine-building enterprise.

However, according to the functional and planning structure of the territory of the Solomensky district, it is planned to allocate about 160 hectares of land in industrial zones “Otradny” and “Post-Volynsky” for the construction of residential buildings on them. This is the south-west of the Solomensky district of the capital, and not the north where the Bolshevik plant is located. the way in 2-3 years of approvals through the detailed plan of the territory of the Solomensky district.

 “Bolshevik” will remain a “dead” plant?

However, 2-3 years of approvals from the DPT is not the main obstacle that makes the prospects for the development of the territory of the factory with foggy residential buildings.

The buyer of the enterprise will face a legal problem – the return of part of its territory. So, back in February, the Supreme Court of Ukraine returned to the plant several non-residential premises with an area of ​​over 6,000 square meters.

The issue with the territory of workshop No. 5 remains unresolved. In addition to the legally unsettled situation around its status, back in 2019, the city wanted to buy the workshop building for the construction of a transport interchange near the Shuliavsky overpass.

Work on the construction itself was overgrown with scandals, its cost, according to the Kyiv City State Administration, has doubled – from 1.05 billion to almost 2 billion UAH. bankruptcy.

However, even in the case of a successful solution to the issue of a traffic intersection, the neighborhood with such a large traffic flow and noise may not please all possible future residents.

According to Andrey Ryzhikov, a possible project on construction on the territory of “Bolshevik” residential buildings is unlikely due to the too large area of ​​the plant.

 “How can you build up 35 hectares of land of the enterprise? There are enough offices and shopping centers in the capital. Housing? But it will require the construction of infrastructure – kindergartens, hospitals. How much money it will take for all this, at what price it will be necessary to sell and how much it will be possible to sell apartments – these are difficult questions to answer, ”the expert believes. , or the territory will be bought by a developer who wants to take the risk and build up 35 hectares of the plant’s territory with residential buildings, possibly by transferring the production itself to Zhashkov.

Giants are targeting Bolshevik

Apparently, it is unlikely that the main profile will be preserved the oldest machine-building enterprise