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Conflicting events involving Univermag Ukraina and their impact on foreign investor attitudes towards the real estate market in Ukraine will be the main topic of discussion at this year's first meeting of the URE CLUB Legal Committee. This decision was reached during an official meeting between Sergey Gaydaychuk, president of the Ukrainian Real Estate Club, and Rostyslav Levinsohn, acting director of Univermag Ukraina.
Ukrainian Real Estate Club president Sergey Gaydaychuk noted, among other points, «As a professional organization in this sector, the Ukrainian Real Estate Club cannot stand aside in current situation. Such events, especially when they involve foreign companies and foreign banks do not contribute to growth of the low rankings of our country in the eyes of international market players. This is particularly the case with investment companies, who analyze all the conditions for doing business in countries where they intend to enter the market».
According to reports, the Commercial Court of the City of Kyiv is currently reviewing more than 10 suits involving Univermag Ukraina. Because the judge took measures to protect the suing party, all shares in Univermag Ukraina belonging to the majority shareholder, Quinn Holdings Sweden AB (QHS) have been frozen. This is nearly 93% of all shares in the shopping center.
In addition, the QHS's main creditor, the Irish Bank Resolution Corporation (IBRC), an Irish state-owned bank, has been forbidden to foreclose on the Univermag building. Moreover, because of the decisions of the Commercial Court of the City of Kyiv in several lawsuits involving Univermag Ukraina, the decisions of the General Meeting of Shareholders of the private company were also blocked, so that the majority shareholder cannot fully exercise its rights to this property.
An unknown foreign company has also filed suit against Univermag Ukraina for tens of millions of dollars. Money is supposed to be garnisheed from the company supposedly in payment for its outstanding debt. IBRC officials are certain that such actions are very destructive in nature and their likely purpose is to bankrupt the company.
«I think the situation with Univermag Ukraina is worrisome for all players on the property market», says URE Club's Sergey Gaydaychuk. «Moreover, in this kind of situation, it is impossible to come to an unambiguous conclusion without professional legal counsel and the opinion of experts in the industry. We plan to add a discussion of the legal implications of this situation with Univermag Ukraina to the agenda of the first meeting in 2012 of the URE Club's Legal Committee. I'm certain that this precedent and the circumstances that have accompanied it will draw considerable interest and reactions from the experts who will be involved in the discussion and will have a major impact on the development of the property market in Ukraine. The URE Club's Legal Committee has demonstrated its competence and effectiveness in the previous year. We will do everything to support its efforts in this year as well».
Brief: The Ukrainian Real Estate Club
Today, the Ukrainian Real Estate Club represents more than 100 companies on the real estate market of Ukraine. The mission of the URE Club is to foster the development of its members and partners by providing unique opportunities and support in establishing long-term business relations in Ukraine and on the international property and investment markets. www.ureclub.com
URE Club Legal Committee
The Legal Committee was set up by the Club with the aim of regulating the activities of players on the real estate market and establishing a transparent legal environment to foster the development of this market in Ukraine. URE Club's Legal Committee has two main objectives:
• acting systematically to improve legislation that regulates the real estate market in Ukraine;
• supporting Club members in resolving legal and regulatory issues related to the activities of Club members.
The URE Club Committee includes leading legal specialists who represent member and partner law firms. In addition to legal specialists, the URE Club Committee encourages all interested representatives of member companies to participate.
