Mykolaiv to Auction 141 Municipal Properties for ₴51M to Support Armed Forces

Mykolaiv plans to sell 141 municipal property through open auctions and use the proceeds to support the Armed Forces of Ukraine.

As it became known during a meeting of the Mykolaiv City Council's Standing Committee on Housing and Utilities, the objects to be sold include boiler houses, architectural monuments and other buildings.

According to preliminary estimates, the starting price of all the facilities will be UAH 51 million. According to Tetiana Dmytrova, head of the municipal property department, this will be the largest privatization in the last 10 years.

According to Dmitrova, many municipal facilities have not been used for a long time but require significant maintenance costs. Their sale will allow to:

• increase revenues to the city budget to help the military;
• attract investors to real estate development;
• get rid of unprofitable assets that have become a burden for the community.
• The official emphasized that the privatization process will be held exclusively through open auctions, which will ensure transparency and competition.

How will the auction be held?

• The Communal Property Department has developed four lists of objects for sale:
• 46 objects are real estate not used by utility companies. The starting price is UAH 12 million.
• 65 properties are leased premises. They will be sold under the existing lease agreements. The starting price is UAH 36 million.
• 2 properties - real estate that provides for compensation to tenants for integral improvements. The starting price is UAH 1.1 million.
• Objects under construction, including a building at 2 Architektora Stara (1463 m²). The initial price is UAH 2 million.

According to Dmitrova, 90% of the properties already have a full package of documents, while some of the pumping stations are still in the process of being formalized.

After receiving an application from a potential buyer, the auction committee will determine the starting price based on the book value. The auction will be held within a shortened timeframe of 5 to 20 business days after the announcement is published. In general, the privatization procedure will last 1.5-2 months.

Intent has already written that the decision to sell the property under the hammer was made at a session of the Mykolaiv City Council.

Mykolaiv is already among the top three Ukrainian cities in terms of transparency and efficiency of leasing municipal property through the Prozorro.Sale system. Next year, the city authorities plan to start selling properties that have been leased for a long time to increase budget revenues, in particular to finance the needs of the Armed Forces of Ukraine.

In 2024, the Regional Office of the State Property Fund of Ukraine (SPFU) in Odesa and Mykolaiv regions put up 28 small-scale privatization objects in Mykolaiv region for electronic auctions. As a result, 19 of them were successfully sold and transferred to private investors. Privatization of 42 more objects in the region is planned for 2025.

Ірина Глухова