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Automatically translated version. May contain inaccuracies compared to the original.
Yaroslavsky bought a hotel for 30 million dollars
Founder of DCH Alexander Yaroslavsky (№11 on Forbes list with a net worth of $980 million) has concentrated 100% of the only five-star Kharkiv hotel Kharkiv Palace. The businessman purchased 50% of the stake in VS Energy, which operates the hotel under the Premier International brand. This was disclosed to Forbes by one of VS Energy International Ukraine’s top managers.
“I am the owner of 100% of the hotel,” Forbes confirmed Yaroslavsky, without going into details. When asked whether he intends to sell the hotel, the businessman joked: “There is nothing in the world that cannot be sold. Today I do not plan to sell, but if a good price is offered, I am ready to sell.”
The Kharkiv Palace hotel opened in late December 2011, before the Euro-2012 football championship. As Forbes wrote, Yaroslavsky received the plot in central Kharkiv from his younger brother Alexey to settle a debt. Construction began in July 2010. In the 11-story, 24 000 square meters accommodate 180 rooms, five restaurants, and six conference rooms.
One of VS Energy International Ukraine’s top managers said the deal was initiated by Yaroslavsky himself. “He wanted to be the sole owner of the project,” the Forbes source explained. According to him, Yaroslavsky used an option to buy out his stake.
Total investment in building Kharkiv Palace was $126 million. Based on this figure, VS Energy International Ukraine could have received for half of the hotel $63 million minus the loan, the amount of which is unknown. A source familiar with the negotiations said the deal amount did not exceed $30 million.
It is possible that Yaroslavsky consolidates a 100%-level stake in the hotel before its sale. In the last five years the businessman has sold his most profitable assets, bringing in at least $500 million. The latest major deal was the football club “Metalist.”
The management company created by Yaroslavsky, DCH, invested these funds in highly liquid bonds, shares of American and European companies, precious metals, and derivatives. He does not disclose the structure of his investment portfolio: in his words, it is constantly changing.
Yaroslavsky is not in a hurry to buy companies in Ukraine. In the last year he completed two small deals: acquiring $10 million 30% of development company “XXI Century,” and a stake in three Karavan shopping centers he acquired for debts.
“Finding a buyer for Kharkiv Palace for Yaroslavsky will not be easy. In Kyiv, two hotels of a similar level have been for sale for several years. Only if a local business group needs an image property. In that case Kharkiv Palace would be a good acquisition,” notes Natalia Stelmakh, Director of Investments at DTZ Ukraine.
Kharkiv Palace is one of the few assets Yaroslavsky still owns in his native city. The businessman also owns Kharkiv airport, which he built for Euro-2012. Based on it, Yaroslavsky is currently developing Kharkiv Airlines. Selling terminals together with the carrier would be much more lucrative. Forbes
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