The Asset Recovery and Management Agency (ARMA) has announced a tender to select a manager for the Gulliver shopping and entertainment center, which was transferred to the National Agency by a court decision.

According to a recent independent appraisal, the value of the facility is 7.6 billion UAH. ARMA has prepared all the necessary tender documents for a transparent tender to select a manager.

The tender will be held through the Prozorro public procurement system. All interested participants who meet the qualification criteria can submit their proposals for the management of one of the largest shopping and entertainment centers in the capital by following the link.

The National Agency has taken a very strict approach to the selection of the manager of this high-profile asset. Part 2 of Article 16 of the Law of Ukraine “On Public Procurement” stipulates that the customer may set one or more of four criteria for the future manager. ARMA has set the maximum possible 4 criteria.

More details on all the criteria can be found here.

In particular, the main ones are:

• The participant must have the appropriate property status with a total value of at least UAH 100 million. This is a guarantee to ensure the possibility of recovering amounts from the manager in case of damage and other fines or breach of contractual obligations.
• The participant must have a stable and improved team of specialists who must have relevant fields of higher education and appropriate professional experience in performing their duties in the received specialty of education. Confirmation of the information provided by the manager is carried out primarily by providing official reporting documents and property registers.
• The Bidder must provide proof of experience in fulfilling similar contracts and engaging in certain types of economic activities (KVED: 68.20, 82.30, 93.29) for a period of at least 3 recent years.
• The Bidder must confirm its financial solvency with official data submitted to the regulatory authorities.

The minimum monthly guarantee payment is important. Please note that the draft agreement with the future Manager is posted on Prozorro, which contains a mandatory provision (clause 5.9) - the minimum monthly guarantee payment is 17,387,779.06 UAH.

This is the minimum amount to be paid by the Manager during the reporting one month of management. The selection competition will start with 70% of the income to be paid to the state budget from the income received from property management. The winner of the tender will be the one who offers the highest percentage of payment to the state budget starting from 70%.

For comparison, in 2018, the Gulliver shopping center was already arrested and transferred to the National Agency. The management company at that time, LLC " Tri O", began managing the Gulliver shopping center on April 26, 2018. During this time, it made payments that changed annually:

• 2018: the amount amounted to 2 million UAH (500 thousand UAH per month)
• 2019: increased to 5.5 million UAH (average - 500 UAH thousand per month)
• 2020: 350 thousand UAH (average - 29 thousand UAH per month)
• 2021: 100 thousand UAH in March, 200 thousand UAH in April, 61 thousand UAH in July.

Thus, over four years, the state budget received 8.2 million UAH from the management of this asset.

At the same time, the minimum monthly payment has been raised from 29 thousand UAH (in 2020) or the average withdrawal of 170 thousand UAH per month over four years to 17.4 million UAH per month! This is a hundred times more per month than the average for all four years.

We remind you that foreign business can also participate in the selection of an asset manager. Earlier, ARMA settled the issue with the Ministry of Economy for foreign investors.

More information on the calculation of the minimum monthly guarantee payment:

When calculating the guarantee payment for real estate assets, the calculation methodology is applied in accordance with clause 19.13 of the Decision of the Kyiv City Council of 14.12.2023 No. 7531/7572 “On the Budget of the City of Kyiv for 2024”, which establishes the minimum monthly rental price of 1 square meter and applies the highest coefficient of 3.