7 Railway Stations Concession Pilot Project

Railway Stations Concession Pilot Project: Kharkiv, Dnipro, Vinnytsia, Khmelnytsky, Mykolayiv, Chop and Kyiv

Potential Investment Opportunity

  • 7 railway stations, including main railway stations of some of Ukraine’s largest cities – Kyiv, Kharkiv, Dnipro – with total PAX in 2019 of 48 mln were selected by Ukrainian Railways for the potential pilot concession.
  • Total areas of the existing real estate and potential new commercial development of the selected railway stations comprise 83 thousand sq.m and 140 thousand sq.m (preliminary estimate), respectively.
  • Indicative total CAPEX for the existing property rehabilitation and new commercial properties development for the selected railway stations was estimated at USD 152 mln (preliminary high-level estimate).
  • The transparency and competitiveness of the tender process are to be supported by a reputable international lead advisor.
  • L’viv Railway Station – #2 in Ukraine by PAX with  11.5 mln passengers in 2019 – might be potentially considered for a concession.
  • Indicative scope for reconstruction might include main and suburban railway stations located nearby.
  • The commercial side of the project might include part of the large-scale commercial development on the adjacent land plot of 20 ha that according to the initial concept envisages 240 thousand of sq.m of commercial property, including retail, offices and hotels.

Retail and Mixed-Use (retail and offices) have been preliminarily identified as the most appropriate development option for the Kyiv Railway Station.

Shopping center development – assumptions

  • Total development budget – USD 59.7 mln
  • 44,200 m2 retail space in 2 levels
  • Rooftop parking for 65 cars

High-level estimates of shopping center development

GBA, sq.m44,200 (above the rails)
Parking capacity650
Construction costs, per sq.mUSD 1,350
Total development budgetUSD 59.7 mln
Potential rental income, p.a., in the base yearUSD 12 mln

Mixed-use development – assumptions

  • Total development budget – USD 64.8 mln
  • 42,500 m2 office space, 24 levels
  • 8,820 m2 retail space, 3 levels
  • Underground parking, 371 cars, 3 levels

Depending on the technical and commercial feasibilities of the presented development option, additional land plots might be considered by Ukrainian Railways within the concession scope.

Kyiv + Vinnytsia Railway Stations are tendered in bundle

* Kyiv Railway Station PAX is comprised of Kyiv Main Station (23.4M) and Kyiv Suburban (8M) Stations PAX

** NPV calculated during the pre-feasibility study does not account for sector-wide global and Ukraine specific effects of COVID-19. Combined NPV does not account for tax effects which are viewed as immaterial for the purposes of this document. CAPEX size, indicative development options, and expected investment returns are to be refined during the feasibility stage.

Objects of concession:

  • Railway Stations main buildings,
  • Attributable land plots with identified areas for commercial development,
  • Passenger facilities.

Railway technical facilities are expected to remain with Ukrainian Railways.

Term of the Concession – 25 years.

The concession fee amount will be determined during the competitive tender process.

Concessionaire’s key obligations:

  • rehabilitation, maintenance and operation of buildings and passenger facilities;
  • improvement of passenger service level;
  • compliance with requirements with respect to new commercial development.

Following market sounding, the Ministry of Infrastructure has made its first priority Kyiv+Vinnitsya project, followed by L’viv+1 and Odessa+1.

Project Stages
Stage 1
Current Stage
Project Identification
Stage 2
Current Stage
Concept Note
Stage 3
Current Stage
Feasibility Study
Stage 4
Current Stage
Stage 5
Current Stage
Transition Period
Stage 6
Current Stage