Diversification with a wow effect: why did Maxim Krippa buy the business center "Parus"?

The capital's first skyscraper

Avoiding cliched expressions in the description of Parusa is a task with an asterisk, the business center, indeed, has a unique history and status. To begin with, at the time of its creation, in 2010, it was the tallest in Ukraine and automatically one of the most prominent buildings in Kyiv.

33-storeys of glass and concrete in neoclassicism style with class "A" offices were impressive. Let's add to it a super-successful location on Mechnikova Street, prestigious Pecherskiy district. Yes, at the present moment, "Parus" has some notable competitors, one of which is also a neighbor - shopping mall "Gulliver", but even though "Parus" is no longer a leader in height, it nevertheless remains an expensive status real estate.

Apparently, prestige was among the arguments "for" when considering the purchase offer. It should be noted that Maxim Krippa's assets are characterized by being impressive and high-class. If a cyber sports club, then the best in Europe - NAVI, if a computer game, then one of the most popular in the world - S.T.A.L.K.E.R..

Complex transaction and profitability

The sale of the giant could not go unnoticed. As soon as the former owner of Parus, Vadym Stolar, announced the sale, intriguing materials appeared in the media. But the Antimonopoly Committee had the last word, and its decision reads: "the declared concentration will not lead to monopolization or significant restriction of competition in the commodity markets of Ukraine". Which in translation from the state to the common man's means: you can buy.

The amount of the transaction was not disclosed. It is known that 80% of assets belonged to Vadim Stolar, the remaining 20% were owned by Inna Maistruk (Stolar's former wife). The size of the deal can be determined only indirectly. Thus, experts note that real estate with relevant characteristics in Kiev is estimated at $2000 per square meter.

The total area of "Parus" is 75 thousand square meters, commercial area is 55 thousand. Adjusting for the current state of affairs in Ukraine, experts assumed that Maxim Krippa paid about $100 million. The sum is impressive, but not huge if we take into account the commercial potential of the asset.

Despite the fact that Parus is in need of renovation and modernization, it nevertheless demonstrates good profitability. In a very difficult year of 2022, the ex-owner of Parus, Advanced Technologies Plus, generated UAH 211 million in revenue and more than UAH 100 million in net profit.

Thus, the asset bought by Maxim Krippa has a good actual yield, but the potential yield is even higher. Especially, if you strengthen the new asset with the ones already in the portfolio and make them work in synergy.

Not only diversification, but also synergy

Naturally, Maxim Krippa does not disclose his intentions and plans regarding the new asset. But no one forbids to analyze the moves. It is interesting that before the full-scale war appeared information that Maxim Krippa acquired a cybersports organization NAVI. The news had an effect, and further investigations by journalists revealed that the decision to acquire NAVI was made long before the deal was finalized in 2022. The contract implied the fulfillment of conditions on the part of the future owner, stretched over time, they were fulfilled only by the beginning of 2022.

And now that Maxim Krippa already owns one of the strongest cyber sports clubs, he is adding real estate to his portfolio. Experts believe that the investor's plans include the creation of a cybersports hub.

"Sail" can be used not only as an asset generating income by renting commercial space. The space, with a little modernization, allows to create a hub with a powerful infrastructure, which would become an impetus for the development of the cyber sports community in Ukraine.

Note that the cyber sports community in our country is developing quite successfully, but it has not reached its peak and has good growth potential. Which is important both from the point of view of commerce and from the point of view of social responsibility of business, especially in the conditions of war and post-war development.

Offices for cyber athletes, modern training grounds for gamers, events, tournaments and activities - all this opens the opportunity to attract and form new Ukrainian stars of cyber sports.

By the way, NAVI has a lot of experience in this direction. As an example, we can name Alexander Kostylev, better known under the nickname s1mple. The 26-year-old Ukrainian cybersportsman is a real star of the world level. Kostylev was recognized three times as the best CS:GO player of the year by HLTV.

Summary:

It seems that the acquisition of Sails is not an eccentric move, but a well-thought-out and well-calibrated move by Maxim Krippa. The move is aimed at developing not only his own portfolio, but also the whole cluster of economy. And in this respect, Krippa's interests coincide with the national interests: not just investments, but investments in new technologies that can bring profitability and help the country are critical now.

Of course, the implementation of large-scale plans will take time, but as the history with NAVI and the results that the organization is already demonstrating under the new owner shows, the chances that Maxim Krippa will make Maxim Krippa talk about himself again are great.

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