Home
/
News
/

XXI Century reduces stake in a hotel project

XXI Century reduces stake in a hotel project

1 June 2010

XXI Century (AIM: XXIC LN) reported today in a trading update that it entered into an agreement, with the co-owner of the Luteranska project site, to begin the development of a hotel with serviced apartments located in central Kyiv. The co-owner will provide initial financing of up to ~USD 12 mln to commence construction. In return, XXI Century reduced its effective ownership in the project from 50.5% to 13.4%. According to XXI Century, a major international hotel group has expressed strong interest in managing and operating the hotel as its flagship five star hotel in Ukraine upon completion of this project. In addition, the developer said it closed the earlier announced sale of three non-core projects and received ~USD 1 mln payment for them. At the same time, XXI Century re-iterated that it continues searching for a strategic investor, as its current financial condition precludes further development of its property portfolio without such an investor. Andriy Gostik: Our view on XXI Century remains intact: only if the developer secures a strategic investor able to not only invest into its project portfolio development but also repay debts/ or negotiate for a significant haircut, will XXI Century be able to return to a normal operating mode. Otherwise, bankruptcy risk remains imminent.

Latest News

News

23

02/2022

Separatists may claim entire territories of two Ukrainian regions

Russia has recognized “all fundamental documents” of the self-proclaimed Donetsk and Luhansk People’s Republics (DNR...

News

23

02/2022

U.K. to provide USD 500 mln loan guarantee for Ukraine as IMF mission starts

The British government is going to provide up to USD 500 mln in loan guarantees...

News

23

02/2022

MinFin bond auction receipts jump to UAH 3.5 bln

Ukraine’s Finance Ministry raised UAH 3.3 bln and EUR 7.2 mln (the total equivalent of...