Oschadbank sold an administrative and hotel complex located at 103 Stolichne Shosse, Kyiv, at auction on financial lease terms; as a result of the bidding, the initial advance payment increased more than 20 times

Oschadbank sold the right to conclude a financial leasing agreement for the Ramada hotel, the Europa business center, and several other real estate properties at an auction held on the SETAM platform on August 19. A total of five participants took part in the bidding. 

The parameter for the auction was the advance payment (the first lease payment), which, according to the results of the auction, increased from UAH 10 million to UAH 201 million, i.e., more than 20 times. According to the SETAM auction rules, the winner must pay this amount to the bank by September 3, 2025.

Going forward, the lessor will receive payment on a monthly basis, beginning the month after the financial leasing agreement was signed. Also, starting from the 24th month from the date of conclusion of the agreement, according to the schedule, the bank will receive a payment that will reimburse part of the cost of the financial leasing object. At the same time, the initially announced schedule for such payments will be adjusted as follows: all payments will be proportionally reduced by a total amount of UAH 191 million, i.e., by the difference between the advance payment (according to the results of the auction, UAH 201 million) and the initial advance payment (according to the starting conditions of the auction, i.e., UAH 10 million).

"The sale of seized property under financial leasing terms is an effective mechanism for clearing banks' balance sheets of non-core assets, which is particularly relevant during a full-scale war. It helps to gradually clear banks' portfolios of foreclosed property without burdening businesses that are under pressure due to objective circumstances related to the state of war," commented Arsen Miliutin, Deputy Chairman of the Board responsible for NPLs, on the auction results.