Odessa's Central Department Store Has Been Put Up for Auction Again for 399 Million

A non-residential property complex located at 72 Italiiska Street in downtown Odesa, which houses the "TSUM" shopping center, has been put up for sale as part of the bankruptcy proceedings of Ukrbudspetstekh LLC. The starting price for the lot is 399,441,000 hryvnias, excluding VAT. The auction is scheduled for October 15.

This is indicated by an announcement in the Prozorro.Sales system.

The lot in question is Lot No. 9—non-residential premises of an integrated property complex with a total area of 12,477.8 square meters, located at 72 Italiiska Street (formerly Pushkinska Street), Odesa.

According to the title documents, the complex includes a department store building marked “A,” a control room, a training workshop, a warehouse, a shed, and electrical workshops. However, the current technical passport reveals a different reality.

At the time the property was put up for auction, only the main “A” building—which is used as the “TSUM” shopping center, complete with retail and warehouse spaces—remained intact.

The other structures listed in the old title documents—the control room, training workshop, warehouse, and electrical workshops—do not physically exist.

Instead, the new technical passport lists a canopy (Building “L”), a bridge, and a tank. At the same time, the total area of the property remains 12,477.8 square meters, as this figure is based solely on the main Building “A.”

The building was constructed in 1959. The listing states that the property is located in central Odesa, has a paved area, and is connected to utilities. It is currently used as retail and warehouse space for the “TSUM” shopping center.

The starting price is 399.441 million hryvnias, excluding VAT.

If divided by the area of 12,477.8 square meters, the starting price is approximately 32,000 hryvnias per square meter.

However, this is only the starting price: the auction will be conducted as a three-round English auction, so the final price may be higher if there is competition.

The application period began on September 25 and will run through October 14, 2026.

The auction itself will take place on October 15 at 11:00 a.m.

The minimum bid increment is 3,994,410 hryvnias, or 1% of the starting price.

The bid bond for participants is 39,944,100 hryvnias, or 10% of the starting price.

The seller is not the city, but the arbitration administrator Tetyana Kolmykova in the bankruptcy case of Ukrbudspetstekh LLC. The case number is 916/1950/16.

The owner of the property listed in the appraisal documents is Ukrbudspetstekh LLC, and the National Bank of Ukraine commissioned the independent appraisal. The appraisal report is dated November 18, 2025, and its purpose was to determine the market value of the property for sale.

However, the NBU has a special status regarding this property—it is the mortgagee of the premises. The real estate was pledged as collateral to the NBU to secure the obligations of PJSC “Imexbank” under a 2009 refinancing loan agreement.

The auction documentation separately describes the situation regarding the use of the building.

The property was previously transferred to the management of Nova-Khvylia LLC under an agreement dated December 30, 2014. Its term was 10 years—until December 30, 2024. However, as noted in the announcement, no supplementary agreement was signed with “Ukrbudspetstech” LLC to extend the contract.

At the same time, this agreement continues to be registered with the State Tax Service with a term extending through December 30, 2034. The auction documentation specifically notes that this registration with the tax authorities is for record-keeping purposes only.

While the management agreement was still in effect, “Nova-Khvylia” leased the premises to “Business Management Group” LLC. The lease agreement was also signed for 10 years—until December 30, 2024. Its term was directly linked to the validity of the property management agreement.

In other words, the documentation for the current auction specifically notes a situation where the old management and lease agreements were formally set to expire in 2024, but information regarding the management agreement is still recorded in the tax systems.

As a reminder, the first auction was scheduled for August 20, 2026, and did not take place due to a lack of participants. Now, the Central Department Store has once again been put up for auction at the same starting price—399 million 441 thousand hryvnias.

The sale is taking place as part of the bankruptcy proceedings involving Ukrbudspetstech LLC, which is part of the business group of former People’s Deputy Leonid Klimov.

According to the documents, ownership of the building belongs to Black Sea Realty Group LLC, which was renamed Ukrbudspetstekh LLC in 2016.

The company is registered in Odesa, and its primary business activity is the leasing and operation of its own or leased real estate. Leonid Klimov is listed as the ultimate beneficiary.

Leonid Klimov is the former owner ofImexbank JSC, which was declared insolvent in late January 2015. In January 2021, the Odesa Court of Appeals ruled to collect 309 million hryvnias from Klimov in favor of the National Bank of Ukraine (NBU) to repay Imexbank’s debt on a previously granted stabilization loan.

Андрій Колісніченко