auction for the premises of the former publishing house
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On January 8, 2024, an auction will be held for the sale of the premises of Dnipro State Enterprise – the former publishing house. We are talking about part of the building on Volodymyrska Street in the center of Kyiv. The starting price of 1 square meter is UAH 9.3 thousand.
Now the building is in need of investment, and the company itself has not made a profit for a long time and does not print books, so the State Property Fund of Ukraine has put this object up for sale.
About the peculiarities of the property complex of State Enterprise “Dnipro” and how valuable it is from a financial and cultural point of view, the acting director told. company director Marianna Rudenko and representatives of the State Property Fund of Ukraine.
From UAH 9.3 thousand per square meter and debts: what is sold in the center of the capital
Marianna Rudenko
Since 2022, SE “Dnipro” has not been a publishing house – books were no longer printed, and trade in printed publications only slightly slowed down the build-up of debts. Thus, in 2020, expenses exceeded the income of the state enterprise by 2.5 times, and in 9 months of 2023 it reached zero.
Currently, the company’s team consists of four specialists, another 20 people work remotely under civil law contracts. It is difficult for state enterprises to compete with private companies.
“The company has been unprofitable for many years and is in a neglected state, has salary debts. Publishing in itself is a difficult business. And it is even more difficult to do it in state hands. That is why I believe that the government’s decision to privatize the premises is the right one,” says V. at. Marianna Rudenko, Director of Dnipro State Enterprise.
The only property complex of Dnipro State Enterprise is 785 square meters of the third and part of the second floor of a late 19th century building near the Golden Gate.
The rest of the building is privately and communally owned. There is a restaurant in the basement, a hotel and a bar association on the first floor, and a hostel on the fourth floor.
The starting price is about UAH 7.3 million. That is, the price of one square meter of a historical building in the center of Kyiv at the auction starts from UAH 9.3 thousand.
Ruslana Kryzska
“The starting price of the object of privatization in accordance with the legislation is formed at the level of the book value of the object (its assets). Competitive struggle at the auction always forms the market price. The electronic trading system “Prozorro.Prodazhi” provides equal access to participation in auctions for all participants We have many examples of price increases even tens of times,” explained the acting director. Ruslana Kryzska, Head of the Regional Department of the Kyiv Federal State Medical University.
The conditions for the privatization of this object are standard: within 6 months from the date of registration of the right of ownership, pay off wages and debts to the budget of UAH 43,000, as well as keep the team.
At the same time, within a month, the new owner must conclude a contract for the protection of the cultural heritage object on the premises with the Culture Department of the KMDA, since the building is a monument of local history.
Also, Dnipro State Enterprise has debts to legal entities – more than UAH 2 million. At one time, the former manager borrowed money to support the publishing house and replenish its working capital.
These debts must be paid only if the creditors demand it, this is not a privatization requirement of the State Property Fund. In this way, the state made the conditions of privatization as convenient as possible for the investor.
Vitaly Koval
“The company accumulated debts, trying to preserve production and the workforce with credit funds. However, due to the rapid development of the printing industry and the growth of private publishing houses, it could not withstand competition. Today, more than ever, Dnipro needs to be rebooted by a new effective owner. In this way, we not only we will preserve the historical building, but also make this state asset, which has long been a liability, an economically active object again. Where there will be jobs and taxes will be paid. That is, another cog in the great economic machine will work, and the state budget will receive the necessary funds from the sale. After all, the Defense Forces need continuous funding. And state property is the country’s internal reserve,” says Vitaliy Koval, head of the State Property Fund of Ukraine.
Approval of documents for restoration is not difficult
The building that is being auctioned was built in 1898 on the site of a two-story wooden building. In 1908, the literary and artistic organization “Ukrainian Club “Rodyna” was located there.
Among the participants were Mykola Lysenko, Oleksandr Oles, Lesya Ukrainka, Ivan Franko, actors Maria Zankovetska, teacher Sofia Rusova. In 1915, the tsarist Russian authorities closed the organization. In March 1917, a meeting of the Central Council of the Ukrainian People’s Republic was held here, where Mykhailo Hrushevskyi was elected as its chairman in absentia.
The founder of the “Heritage.UA” project, Hanna Gavryliv, who, together with her team, buys valuable historical buildings and architectural monuments of local importance from the state and gives them a new life, assures: there is nothing difficult in agreeing the documents for the restoration that this premises needs.
Anna Gavryliv
“Scientific design and estimate documentation for restoration work for such monuments is developed by special project organizations that have the appropriate licenses. The cost of the documentation depends on the construction volume and type of work. Scientific research, development and approval of the project take from six months to a year.” , – explains the expert.
And he emphasizes that the status of a monument does not limit, but on the contrary – expands the investor’s opportunities.
“This is not just square meters in the center of the capital, but an object of history and legend, which has historical value and intellectual value. After all, outstanding historical figures lived in this building: Lesya Ukrainka, Ivan Franko, Mykola Lysenko… This is an opportunity to make one’s own contribution to preservation of Ukrainian identity. Such buildings have a greater value for the state, community, investor, and society in general. I believe that the new owner can be proud of the object in which such figures of Ukrainian history are involved,” summarizes Hanna Gavryliv.
This article was produced with the support of the American and British peoples through the United States Agency for International Development (USAID) and the Foreign, Commonwealth and Development Office (UKaid). The views and opinions of the authors expressed in these publications do not necessarily reflect those of USAID, the US Government, UKaid or the UK Government.
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