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The State Property Fund established criteria for determining the objects of state property, the decision on approval of additional lease terms which is made by the Fund

On June 4, the Order of the State Property Fund dd. May 18, 2021 No. 828 “On Approval of Criteria for Determining the Objects of State Property, the Decision to Approve Additional Lease Terms which is Made by the State Property Fund of Ukraine” came into force.

You can read the document at the link - https://bit.ly/3w4xFfF.

This document approves the list of criteria for determining the objects of state property, the decision to establish additional lease terms which is taken directly by the State Property Fund.

The list of such criteria includes, in particular:

• the object’s area is 500 or more square meters;

• the lease object is a property complex (PC) of a state-owned enterprise (its separate subdivision), regardless of the area of ​​individual real estate objects that are part of it, the lease agreement of which is extended as a result of the auction.

In accordance with the Procedure for Leasing State and Municipal Property, the following additional lease terms may be determined:

• longer lease term than 5 years;

• restrictions on the purpose for which the property cannot be used. As a general rule, state property is leased without specifying the intended purpose and can be used by the lessee at its discretion. The State Property Fund will approve exceptions to this rule for large leased objects (more than 500 sq. m.);

• imposition on the lessee of certain investment obligations, in particular: performance of certain types of repair work (current and / or overhaul), reconstruction or restoration of the leased object in a certain amount for a certain period or fulfillment of other investment obligations within the stipulated legislation;

• limiting the range of potential lessees by setting certain requirements for them, in particular the requirements for experience in a particular area and determining the list of documents that must be submitted by a potential lessee to confirm the existence of such experience;

• requirements for the specifics of the use of the leased object, which is the property of educational institutions, health care, socio-cultural purposes (cultural institutions, physical culture and sports);

• other conditions provided by law.

It is important to emphasize that in accordance with paragraph 54 of the Procedure for Leasing State and Municipal Property, the State Property Fund establishes additional lease terms not only for objects of which it is the lessor directly, but also for objects in respect of which the lessors are other authorities.

This is, for example, property belonging to the property complex of the National Academy of Sciences of Ukraine and national branch academies of sciences, property that is on the balance of enterprises and institutions that are part of the State Concern “Ukroboronprom”.

For reference.

Currently, according to data of the electronic trading system Prozorro.Sales, 16 auctions have been held for the lease of state-owned real estate with an area of ​​more than 500 sq. m., the lessors of which are other authorities and organizations. Additional conditions were set in 4 of them.

As an example, one such auction took place on April 8. The National Research Center “Institute of Mechanization and Electrification of Agriculture” of the National Academy of Agrarian Sciences of Ukraine leased part of the open area with a hard surface with a total area of ​​2,041.6 sq. m. in Hlevakha village, Kyiv region. Link to the auction - https://bit.ly/2Ta0loY. The additional condition for the lease of this object is to limit the intended use, under which the lessee is not entitled to use it.

At the same time, there are examples of leased objects with an area of ​​more than 500 sq. m., which auctions for the lease did not take place, but the terms of the lease could fall under the Order of the Fund. In particular, on April 30, 2021 the Institute of Problems of Materials Science named after І. М. Frantsevych of the National Academy of Sciences of Ukraine announced an auction https://bit.ly/3vS7Tve for the lease of premises of the veterinary center with an area of ​​674.5 sq. m. in Kyiv city for a period of 10 years with the obligation of the lessee to repair the leased object.

If the auctions in the first and second examples took place after June 4, 2021, the additional lease terms for these objects would have to be approved by the State Property Fund.

The State Property Fund agrees on lease terms of state property for more than 5 years, regardless of their area, in accordance with the Instruction of the State Property Fund of Ukraine on approval of the lease term of more than 5 years from 03.03.2021 No. Д2/3. Such approval is provided by a letter from the Fund.

After the entry into force of the Fund’s Order No. 828, the Instruction mentioned above shall remain in force in case of lease of property with an area of ​​less than 500 sq. m. This means that the regional offices of the Fund must continue to obtain the approval of the Fund’s (in the form of a letter) to set a lease term of more than 5 years as an additional lease condition if the area of ​​the object is less than 500 sq. m.

In turn, in accordance with the Fund’s Order No. 828, the decision to approve any additional lease terms, including the lease term of more than 5 years is taken by the Fund by its order, provided that the area of ​​the object exceeds 500 sq. m.

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