The National Bank of Ukraine (NBU) has successfully sold real estate received as repayment of banks’ debts to the regulator.
The NBU was transferred the property in 2016 as debt repayment under loans issued to Ukrainian banks.
“This is the first successful deal this year with real estate that was transferred to the NBU as redemption of banks’ debts. At present, the NBU holds real estate received as debt repayment from banks at the amount of UAH 31 million (market value expected for the sale of the assets). Furthermore, some other real estate units are in the process of recognition. All these assets should be sold on transparent terms that will enable to recover refinancing loans issued by the NBU,” commented Deputy Governor of the National Bank of Ukraine Roman Borysenko.
The sale was transacted on 29 January 2018 via Zakupki.Prom.ua, a platform for public and commercial bidding the official member of the National System for State Electronic Procurements ProZorro.
The price of sale amounted to almost UAH 112.6 million (net of VAT) according to the auction in the electronic trading system that won UKRBUD DEVELOPMENT LLC.
The NBU entered into a respective sale agreement with the winner of the open bidding on 13 February 2018.
For reference
In December 2016, the NBU was transferred a real estate unit worth UAH 258.3 million with the address: 6 Laboratornyi Lane, Kyiv city, as part of the enforcement proceedings. This is the value of the collateral[1] set out in the court’s decision offered as a selling price by the enforcement service for the first bidding in СЕТАМ.
For the recognition of the real estate unit the NBU hired services of the independent appraisal of property to estimate its current market value. According to the said appraisal, the NBU recognized the property in balance sheet at UAH 120.7 million (net of VAT) that takes into account the appraised value and costs of appraisal services.
In 2017, this real estate unit was put up for sale several times: twice the bidding did not take place, because the bidders failed to appear, once - due to registration of only one bidder. And finally, in January 2018, the electronic bidding was a success and the winner was UKRBUD DEVELOPMENT LLC.
[1]According to Article 62 paragraph 9 of the Law of Ukraine On Enforcement Proceeding effective at the time of property transfer, the property shall be transferred to the party seeking enforcement at the value that equals the initial cost of the property that was charged for it.