Unfinished Construction Challenges

This article has previously been published in Business Ukraine.

New legislative changes reduce registration risk but question marks remain

Developers, investors, construction bankers and other businesses engaged in development are now free to benefit from the possibility to register titles to unfinished construction objects ("UCO[s]") in Ukraine. They should, nevertheless, be cautious with the temptation to overestimate the possibilities of this newly gained freedom.

Transferring, mortgaging and otherwise disposing the UCOs has become vital in today's development business. It allows for sale of distressed UCOs, financing and refinancing of development projects, as well as obtaining bank guarantees secured by the mortgage of UCOs.