UkrSibbank has a time-proven experience in construction of shopping and leisure centers

Valeriy Povreznuyk, Director of the Project Finance Center of JSCIB «UkrSibbank»

Expertise of UkrSibbank in the construction of shopping and leisure centers in the cities of Ukraine is tremendous. UkrSibbank pays a prime attention to the land. It is less risky to finance projects, where the land is owned by the borrower. Still, in case of land lease, we usually do not experience any problems, provided that the customer’s documents are all right owned.

However, we should always keep in mind that the use of the land owned might be intended for different purposes. The construction object should always comply with its intended purpose, e.g. you may not perform construction works on the private farming land, and that is why such projects are not financed.

During the construction works on the land lot under lease there is a number of legal issues to be considered, namely: lease conditions, approval of the lessor, usually, municipal authorities. From time to time, lease agreements may contain certain clauses, which potentially expose the project to risk for all the parties. In case of a commercial real estate, we recommend the customers to acquire the land into ownership.