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since last fall are to be released for service on the tracks.
Ukrainian Railway ( Ukrzaliznytsia ) will boost its freight rates by 14.2% as of April after the State Regulatory Service approved a Cabinet decree foreseeing the adjustment, CEO Yevhen Kravtsov wrote on his Facebook page on March 22. The company expects further increases in freight rates of 2.5% as of May, 5.0% as of August and 7.5% as of November (compared to April’s level), according to its 2019 financial plan approved by the Cabinet in early March. Ukrainian Railway’s revenue from freight transportation services is planned to increase 24.3% y/y to UAH83.99bn in 2019 amid a 0.8% y/y increase in freight turnover to 230.3bn t*km. The plan also foresees a 23.1% y/y rise in the company’s total revenue to UAH102.71bn and a 59.4% y/y surge in EBITDA to UAH25.05bn. It also assumes a 8.6% y/y increase in CapEx to UAH18.02bn. In the approved financial plan, the company’s revenue, EBITDA and CapEx were lower than in the initial 2019 plan published in late 2018 by 6%, 10% and 32%, respectively. Ukrainian Railway is also going to boost its net debt by UAH3.84bn in 2019 to UAH40.01bn, and finish the year with a net-debt-to-EBITDA ratio of 1.6x (down from 2.3x in 2018).
9.2.4 Construction & Real estate corporate news
Israeli-Ukrainian City Capital Group plans to invest more than $50mn over the next four years to convert old industrial spaces in Kyiv into offices. “The office real estate market is coming to life,” Maria Kazantseva, a CCG board member, tells Interfax-Ukraine. “All experts predict an increase in the demand in this segment. IT companies are declaring a shortage of quality space.” Founded a decade ago by Israeli businessman Ofer Kerzner, CCG manages Platforma Art Factory, on the left bank, near Lisova metro station.
This summer, a 2,000 square meter shopping and entertainment centre will open 50 meters from the southern exit of Kyiv’s Central Rail Station, reports Informator news site. With about 100,000 people passing through the Southern Station a day, the exit area already has a KFC, a Papa John Pizza and a Puzzata Hata. According to Colliers International, the new centre will offer stores and two restaurants with summer verandas on the roof. Ukrzaliznytsia is drawing up plans to privatize management of the commercial spaces inside the Central Station, which opened in 1932.
Dragon Capital continues retail real estate acquisitions with new mall complex purchase . The Dragon Capital group has acquired a fourth shopping complex with the early March purchase of the Aladdin shopping mall and entertainment complex in Kyiv’s largely residential Left Bank. The acquisition brings the Dragon Capital retail real estate portfolio to four malls and follows similar purchases in recent years of Pyramida (Kyiv), Victoria Gardens (Lviv) and Sky Park (Vinnytsia). Dragon Capital’s expansion into the retail segment is driven by encouraging long-term consumer indicators in Ukraine as retail spending continues to rise and new global brands seek to enter the market. French sportswear giant Decathlon is set to open its first Ukrainian store in the coming weeks, while IKEA also planning its Ukraine launch in 2019 with four initial showrooms expected.
9.2.5 Retail corporate news
49 UKRAINE Country Report April 2019 www.intellinews.com
Britain’s Marks & Spencer reopened in Kharkiv at the end of February,