Banks are abandoning 'excavation sites': how Ukrainian developers are saving construction projects through REIT funds
🏗️ Banks are refusing to finance construction sites at the excavation stage. In response, Ukrainian developers are launching their own investment funds (REIT analogues) to attract citizens' money directly.
📉 Why is this happening?
• Banks consider early stages of construction too risky.
• Financing is available only for objects with at least 50% completion.
💰 How does it work?
• Companies like Taryan Group and blago are creating JIIs (Joint Investment Institutions).
• Entry threshold: from 1,000 UAH for commercial and from 150,000 UAH for residential.
• Profit tax is not paid until dividends are distributed.
⚠️ Risks: exiting an investment during a crisis may be unprofitable.
#realestate #investments #construction #economy
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