The Megamarket chain co-owners divided business

Victor Yushkovsky and Oleg Vishnyakov broke. That fell to each partner?

Two sources in the real estate market, close to the businessmen’s, and Director of a large real estate development company told about it to LIGA.net. The owners of one of the most closed groups in Ukraine — ADS — decided to break. Four of the nine Kiev assets — Shopping Center and Hotel Cosmopolitan, Entertainment Center Ultramarine, and the building Petrovka Megamarket — passed into the Oleg Vishnyakov control. The remaining five assets — Shopping Center Terminal in Brovary, Outlet Center Manufaktura, Megastore buildings on the Gorky and Surikov streets and building on the highway Odessa fourth kilometer — to senior partner Victor Yuskovsky. He also will oversee the work of the Megamarket foodchain and Butterfly Cinemas.

Pioneers

The ADS group is one of the largest development companies in Kiev. Until recently, Victor Yushkovsky was governed by its business. The Company was a pioneer in many directions of commercial real estate and retail, — the co-owner of the RetailNet Consulting Company Oleksandr Lanetsky says. “In the early 2000’s, they first opened format Cash&Carry and also the first multihall cinema with the quality sound Butterfly at Petrovka”, -Lanetsky tells.  In 2009 first aquapark was opened in Brovary — SEC Terminal.

ADS preferred to develop for their own money and almost never borrowed unlike other developers. “The development pace is lower at us than for many competitors. But we are pleased”, — one of the company managers said to LIGA.net. In the beginning of 2016, the magazine Forbes Ukraine estimated the group ADS annual income from rental real estate in UAH 220-260 mln.

Outlet Center Manufaktura square of about 25,000 sq. m, was the last new object of the Company, which was opened in the fall of 2013. The scandal broke before its opening. Inspection of State architectural-building control stopped working in July 2013 in connection with the understatement of the construction category with a V to III. The conflict was resolved within a few weeks.

Voluntary divorce

The first information about the readiness of the partners to diverge appeared on the market a year and a half ago. The head of the large food discounters chain, who requested anonymity, told to LIGA.net that they were willing to sell own development objects and Megamarket chain. But buyers are not found. “Not all supermarkets has good places, as now the Megastore is focused on clients with incomes above average,” — says Director of the trade chain suppliers Ukrainian Association Aleksey Doroshenko. Discounters are popular the last three years among the population.

Why would the Megastore founders decided to divide? Different views on the development of business could be the reason, when one insists on the dynamic development and the other takes the opposite point of view, — Atlas Advisors Company partner Aleksey Raschupkin said. “We are talking about a civilized divorce in this case, this is a positive moment,” — he says.

Prices for commercial property are low now, and the business itself is sold with a multiplier of 6-7, whereas three years ago it was 12, — the co-owner of the real estate development Company XXI Century Oleg Salmin adds. “Rental income has decreased, so the assets have fallen in price over the last three years three times”, — he said. The market can win back losses in the next few years, so the partners took waiting position, — allows Salmin.

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