Ukrainian entrepreneur Maksym Krippa shared his impressions of his significant real estate investments, mainly focusing on his purchases during the difficult times of the war. In a conversation with New Style Kiev, Maksym Krippa, citing Forbes Ukrainian, discussed the motives for his purchases and the unique circumstances that influenced his decision.
Strategic Purchases Amid Conflict
Krippa explained that the Parus business center, one of Kyiv’s most iconic properties, had been on the market before the war began. However, the onset of the full-scale invasion created an opportunity for the investor to secure the property on more favorable terms. According to Maksym Krippa, this was a calculated decision driven by a belief in Ukraine’s potential to recover and thrive once peace is restored.
Despite the challenging economic environment, Krippa noted that Parus remains highly attractive, with an occupancy rate exceeding 90%, far outpacing the 70-75% occupancy in most other business centers in Kyiv. This strong performance underscored his confidence in the resilience of Ukraine’s commercial real estate market.
Details of the Parus Acquisition
Krippa revealed that his purchase of the Parus business center was structured over time, making it a more manageable investment. He clarified that the deal included existing financial obligations, such as a UAH 600 million loan, which was excluded from the initial payment calculations. This flexible arrangement allowed him to acquire the property without paying the entire sum upfront.
The entrepreneur focused on acquiring properties with unmatched brand value and strategic locations. While new construction could offer a fresh start, Krippa argued that it would be both costlier and slower compared to investing in a well-established landmark like Parus.
Post-Invasion Challenges and Recovery
Following the start of the full-scale invasion, rental income at Parus significantly declined, with payments reduced by more than 50%. However, Krippa pointed out that rents are gradually recovering, even if they have not yet returned to pre-war levels. He remains optimistic about the long-term prospects of the Ukrainian real estate market, emphasizing his commitment to the country’s economic revival.