The price for leasing a part of the area of the passenger terminal of the International Airport "Lviv" has increased 28 times as a result of an auction to extend the lease agreement

On December 10, an online auction was held to extend the lease agreement for a part of the premises of the passenger terminal of the International Airport "Lviv" with an area of 4 sq. m.

The starting price of the lot was UAH 1,591.78. The same amount was paid by the current tenant for the last month of lease under a preliminary agreement. As a result of competitive online bidding, in which 4 participants took part, it increased more than 28 times - up to UAH 45,000. This amount will be the monthly rent under the new contract.

Under the terms of the lease, the premises have no restrictions on the intended use.

The current tenant participated in the auction, made the first price offer of UAH 12,500, and did not bargain in the following rounds.

The State Property Fund of Ukraine reminds that, according to the Procedure for the Lease of State and Communal Property, existing tenants have a pre-emptive right to extend the lease agreement.

This means that it is enough for the existing tenants to take part in the auction for the extension of the lease agreement and make a closed price offer, which must be no less than the size of the starting rent (clause 149 of the Procedure for Leasing State and Communal Property). The current tenant is not required to raise bids during the auction.

In order to exercise the preemptive right to extend the lease agreement, the current tenant must agree to pay for the lease of the premises UAH 45,000 per month - this is the amount of the highest price offer of the winning bidder.

Winner of auction has got 3 working days for execution of protocol and 20 working days for conclusion of lease agreement from day following day of formation of the protocol on the results of auction according to Procedure for Leasing State and of Municipal Property.

The lease agreement with the winning bidder will be concluded after he has made an advance payment of 6 months lease plus value added tax, and pays a security deposit in the amount of 2 months lease (the security deposit is not subject to added tax. cost). In total, this is UAH 414 thousand. He will need to make the next payment within 6 months and 15 days after the conclusion of the contract.

If the winner of the auction refuses to pay the advance payment and the security deposit, the landlord, in accordance with clause 98 of the Procedure, decides on the winner's refusal to conclude an agreement. In this case, a new protocol on the results of the electronic auction will be generated in the electronic trading system, in which the participant will be determined as the winner with the next largest closed price offer. If this participant also refuses to conclude an agreement, the State Property Fund will announce a repeated auction.

In this case, the lease agreement with the current tenant is considered extended in accordance with paragraph three of clause 151 of the Procedure until the conclusion of an agreement with the winner of the repeated auction, announced in accordance with paragraph six of clause 149 of the Procedure.

For the first time, the new lease rules provided substantial guarantees to protect the preemptive right of existing tenants to renew their leases, while ensuring transparency of the procedure and opening up equal opportunities for participation in auctions for everyone.

The results of the auction can be found here: https://bit.ly/2VWDmMw.You also have the opportunity to familiarize yourself with other announced auctions for renting premises on the territory of Lviv International Airport by following the link: https://bit.ly/3mc8W3k.