For the first time since the start of the war, a private Western fund has bought Ukrainian real estate.

Dutch real estate fund Arcona Property Fund (APF) has purchased a land plot in the center of Kyiv from a British company, Secure Property Investment and Development (SPDI). This deal is the first purchase by a private Western real estate fund in Ukraine since the start of the full-scale Russian invasion in 2022.

The 0.54-hectare plot near Lviv Square is well-suited for constructing luxury housing. The company purchased the plot for $2M (in cash and APF shares). This deal completes APF’s purchase program from SPDI, agreed upon in 2020, which covers six assets in Bulgaria, Romania, and Ukraine.

“Although the purchase of this property was part of a package deal, certain conditions of the sale were not met before the start of the Russian invasion in February 2022,” said APF top manager Guy Barker.

He added: “Since then, we have closely monitored military, political, and economic developments, and as the conditions of the purchase have been met, we feel confident enough in Ukraine’s future to proceed with the deal.”