Arricano reports positive changes in the State Registration Service of Ukraine

Arricano Real Estate, a leading developer and chain operator of European-level shopping & entertainment centres in Ukraine, reports on significant positive changes in the work of State Registration Service of Ukraine (Ukrderzhreestr) that the company has experienced when interacting with the Service in late 2014 – early 2015.

Yarema Kovaliv, member of Arricano Board of Directors, said: “Arricano has been working in the field of commercial real estate since 2008 and in these years has built six large European-level shopping centres. The company has a wide experience in the registration of property rights to real estate and in execution of related documentation. I would like to note that it is the first time in the mentioned period that the registration procedure of real estate is in strict compliance with the current Ukrainian legislation and the property rights registration is absolutely transparent, it is not accompanied by corruption schemes and exactions. This is an important achievement of the new team working in Ukrderzhreestr and the Ministry of Justice of Ukraine.”

In particular, on December 12, 2014, one of the Arricano group companies submitted documents for registration of a facility under construction – SEC “Lukianivka”, and already on January 15, 2015, according to the terms established by the current legislation of Ukraine, the company received the title document. In addition, when the registration of ownership to one of the company facilities in took place February-March 2015, Arricano received extensive legal advice from the State Registration Service experts, and this facilitated correct execution of application and the receipt of title documents in the terms stipulated by the law.

In addition, Arricano notes that Ukrderzhreestr responds in a constructive manner to complaints on the work of the office. Thus, on December 25, 2014, Arricano appealed to the State Registration Service on the wrongful acts of the officer of Department for State Registration of Legal Entities and Individual Entrepreneurs of Boryspil City Department of Justice Sulima O.A. of December 17, 2014. As a result of Sulima’s acts, an illegal re-registration of SEC Sky Mall was made, i.e. 100% of corporate rights to Prisma Beta LLC were transferred from Financing and Investment Solutions B.V. to SKY HOLDING LLC, and Prisma Beta LLC was re-registered from Luhansk city, 26 Lenina Str., to Boryspil city, 127B/10 Kyivskyi Shliakh Str.

In response to Arricano’s complaints, the management of the State Registration Service has promptly created a Commission on the issue, and on January 14, 2015 has officially informed the company on the results of its work. The Commission confirmed that in the above registration actions the Registrar had committed a violation (the acts have been made under numerous injunctions, which does not comply with the Ukrainian law).

Arricano expresses its gratitude to the management of the State Registration Service of Ukraine and to the Minister of Justice of Ukraine Pavlo Petrenko for prompt and constructive response to the company’s complaint, as well as for improving the process of property rights registration pursuant to the laws of Ukraine. Arricano, as the largest European investor in commercial real estate of Ukraine, considers the above facts as the first tangible effects of carrying out reforms and looks forward to further implementation of the best international standards of business and government agencies’ collaboration.