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About the sore point of building freeze

Our client, one of the leading construction companies in Kharkiv and a large-scale investor in construction projects, came to us with an urgent problem which many investors in Ukraine face.

His own funds were frozen at the construction of one of Kharkov’s apartment complexes.
What was the reason?
Everything, as always, is very banal – the developer was drained of his funds and stopped construction.

Intending to take over the responsibility for the completion of the construction, the Client was in search of options for removing the insolvent developer from the project.

A full audit of the suspended construction had to be performed. Therefore, the whole package of approval documents, land rights, availability and validity of technical and urban planning conditions, the list of other investors and the amount of financing were thoroughly checked.

The attorneys of two leading practice areas – construction and tax law practice – were involved. With the concerted efforts of the team, several optimal ways of changing the developer were offered to the Client.

As you know, buying an apartment building, while unfinished, is a considerable deal. That is why the intense negotiations with the previous owners of the property were proceeding for quite a long time, we agreed the complex terms of the contracts, we fixed the mechanisms of observance of the rights of all construction investors.

A separate step was to overcome the extremely bureaucratic procedure of re-issuing permits for a new developer.

And finally, one of the Kharkov long-term construction projects got a new breath and a good prospect of becoming a comfortable housing!


Partner
Viktoriia Zaitseva
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