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Messenger Legal audit of the Dibrova Park residential complex
| Client | IB Alliance |
| Location | Kyiv, Podilskyi r-n |
| Class | Comfort |
| Price UAH/m² | 20 750 — 34 850 |
On Vynohradar, near the Varshavskyi microdistrict, another microdistrict is being built – the Dibrova Park residential complex. Most of the existing infrastructure is provided by the new Retroville shopping center and the commerce in the Varshavskyi microdistrict. In addition, two more shopping centers are planned on the territory of the complex itself and the promised metro, which should be right next to the Dibrova Park residential complex.
- Document review
- Investment scheme analysis
- Process analysis
- Transaction support
The planned commissioning date for the first 4 buildings is the beginning of 2022. Usually, as long as the handover date has not arrived and there are no delays, no one knows whether the residential complex has any problems. Investors start to study information only when they see a delay in delivery. Dibrova Park is being built by the state enterprise “Agrokombinat Pushcha-Vodytsia”, about which a lot of negative information has appeared online in the last six months.
Client and developer
The developer is IB Alliance. As far as I know, this developer is currently implementing only Dibrova Park, but together with other developers it is implementing the Zarechnyi and Great residential complexes.
The client of the residential complex is the state enterprise “Agrokombinat Pushcha-Vodytsia”. According to information online, this enterprise has a tax debt of 11.5 million UAH. Pushcha-Vodytsia is also the client of the Warsawskyi + and Warsawskyi 2 residential complexes, so everything is very intertwined here.
Land and courts
The land on which Dibrova Park is being built is a huge area of 55 hectares, which is state-owned and has been transferred for permanent use to the state enterprise “Agrokombinat Pushcha-Vodytsia”.
The designated use of the land implies residential development. But there are many protected zones on this land. For example, around engineering communications and energy systems. The specific size of the protected zone varies depending on the object being protected, and failure to comply with protected zones often becomes a reason for problems with the prosecutor’s office. Therefore, if you plan to invest in Dibrova Park, I recommend that you carefully check all restrictions and protected zones for the land.
But there are more pressing problems with this land, which I have divided into two blocks.
The first is criminal proceedings regarding how Pushcha-Vodytsia disposed of state land. The land plot number for Dibrova Park appears in 15 court orders in criminal cases. I am sure many have heard about the situation with criminal cases around Pushcha-Vodytsia’s lands and I want to draw your attention to the fact that this land also appears in those same court orders.
In short: Pushcha-Vodytsia was the user of a large amount of state land, and then information began to appear that land was moving from state ownership into private hands, and land plots were being transferred for development to various large companies. For this, Pushcha-Vodytsia concluded investment agreements with these companies.
The second block of problems — the apartment purchase agreement states that for the construction of the residential complex an agreement No. 823 was concluded between Pushcha-Vodytsia and Interproject. Then we find a court case which indicates that Pushcha-Vodytsia filed a lawsuit against Interproject to declare agreement 823 invalid. The fate of this case is unclear, but the likelihood of the complex being commissioned in 2022 is low.
Building permit
There is a permit and it was issued for the construction of 26-storey buildings.
Investment scheme
When purchasing an apartment in Dibrova Park, you need to sign 2 agreements: a derivative agreement and a purchase and sale agreement of property rights.
- Document review
- Investment scheme analysis
- Process analysis
- Transaction support
The risk of the derivative is that the money under this agreement (in case of non-completion or delay of construction) you will not be able to recover (speaking about recovery through the court). You will only be able to claim the amount that you paid under the purchase and sale agreement of property rights, and often this is only half of the cost of the apartment.
I hope that Pushcha-Vodytsia and Interproject will settle their issues, stop suing each other and commission Dibrova Park, because this is quite a large-scale project. But, in my subjective opinion, the investment risks in this residential complex are very high.
I recommend that before investing in any residential complex, you consult a lawyer for help and check all documents and permits.
Dibrova Park Residential Complex — problems that can be avoided.
- Unfinished construction. In Kyiv alone there are 70 unfinished construction projects. 18,000 apartments whose buyers will not receive keys.
- Stalled projects. In Kyiv there are 8 well-known stalled projects that have been under construction for more than 12 years.
- Completed project does not match the advertised one. This is when the developer said one thing, but another happened. You expected to see a luxurious playground, but in fact there are three swings. The visualizations showed a green courtyard with mature trees and bushes, in reality there is asphalt everywhere, dug-up pieces of land around the perimeter and some sprouts instead of lush crowns. A car-free yard was promised, but in the end there is parking under the entrance. The pictures showed a beautiful lobby and corridors with finishes, instead you get monotonous Soviet-style entrances. There are many examples.
“Remember! Neither a realtor, nor a bank, nor especially a sales office will fully find out all the problems with Dibrova Park, because they care about one thing – closing the deal and getting their profit. Checking a new development and the investment is your personal responsibility. Study all the documents, check all aspects yourself. If you need to reduce the risks to 0, order a full check and we will do everything for you.”