What is Promprylad.Renovation?
Promprylad.Renovation is an innovation center on premises of a revitalized plant in Ivano-Frankivsk, with four focus areas of regional development ‒ new economy, urban planning contemporary art, and non-formal education. The project aims to unlock the potential of the city and region, stimulate entrepreneurship and economic growth, and create an effective model to follow for other cities.
What is the aim of the project?
Promprylad.Renovation has to become a place where opportunities are created and introduced for aspiring people in order to unleash the potential of the city and region. The project should become a prototype for other territories with similar background.
How was the idea born?
In 2015, students of CANаctions architecture school explored Ivano-Frankivsk and worked on creation of urban constitution for the city. Victor Zotov, an architect and founder of the school, drew attention to a deserted plant. He shared the idea with Yuriy Fylyuk, CEO of Teple Misto platform. Later the platform started working on the project and engaged the strategic partners in it.
Who are the strategic partners?
Strategically, the project is being implemented by the consortium of non-governmental organizations Teple Misto, Insha Osvita, Pact Ukraine, MitOst, and LvBS.
Who is implementing the project?
A team of specialists with wide-ranging business experience and practice in social entrepreneurship and non-governmental initiatives (Teple Misto, Urban Space 100, and more). To see the project team go to our website the project team go to our website.
Does the project have any partners? Who has already supported it?
A number of non-governmental organizations, funds, and businesses supported the initiative on planning stage and during pilot floor implementation. These are Ivano-Frankivsk city administration, CANactions, Robert Bosch Foundation, BMW Foundation, 23 restaurants, Impact Hub Odessa.
Partnering contractors of the project are SRI Іnternational, Forma Architectural Studio, Moris Group law firm, Zotov&co architecture practice, Aimbulance agency, Ernst & Young, Garage Gang non-governmental organization.
Partnering donors are Sweden, Canada, PLEDDG, FCM, International Renaissance Foundation, Swiss Agency for Development and Cooperation, British Council, Federal Ministry of Economic Cooperation and Development of Germany, Heinrich Boell Stiftung, EVZ Stiftung.
What is the background for starting a social business in Ivano-Frankivsk?
What kind of research was conducted to justify the hypotheses?
Will this kind of project be of high demand in Ivano-Frankivsk?
Wouldn’t it be easier to implement this kind of project in a bigger city?
There are over 20 industrial zones in Ivano-Frankivsk. Why is it Promprylad?
Will the plant cease to operate completely? Isn’t it worth to work towards preserving the operation?
What exactly will be done?
Architectural concept of Promprylad.Renovation provides for purchase and renovation of a 2 ha territory including four remaining Promprylad plant buildings. A few more buildings will be constructed, and a public square and a park will be opened in the yard.
For more details about Promprylad.Renovation architectural concept go here
It should be noted that over the past decades business owners have purchased a big part of plant buildings. These locations are now occupied with residential buildings, an incomplete construction of a shopping mall, and a number of other projected buildings which bear no relation to Promprylad.Renovation.
Is it safe to exploit the plant buildings for this kind of project?
What kinds of technology were used in the course of reconstruction?
What is ‘pilot’?
Who occupies the pilot floor?
What is impact investing?
Impact investment stands for investing in companies, organizations, and funds with an intention to make a measurable social and/or environmental impact alongside a financial return in the long run.
Impact investment has three mandatory criteria ‒ expectation of financial return, intention to improve a certain social or environmental sector, and upgrade the methods to measure this impact. Unlike charity, impact investments promote the idea of sustainable development of communities through supporting businesses and economy.
Which business spheres does impact investing apply to?
What is the social impact of the project?
What constitutes the business of Promprylad.Renovation?
As a business, Promprylad.Renovation is a multifunctional commercial realty object with a focus on proceeds of operational activity.
The project offers its renters a 3400 m² A-class office space, and 13000 m² B-class offices. Over 2400 m² will be given to an exhibition hall and conference center. Hotel rooms of different categories will cover a 4600 m² area.
What do we need investments for?
What will the main sources of income be?
Main sources of income are:
- renting out office units and special-purpose spaces;
- hotel and exhibition complex;
- selling event tickets, holding turnkey events, short-term rent of exhibition and conference halls.
Does the project have a calculated business plan?
What is the minimum amount of investment?
What is the procedure for investing?
What are the main rate of return and other business plan indicators?
- Total amount of investments is 25 million dollars
- Reconstruction budget is 20.6 million dollars including VAT
- Total area of the project is 37,800 m²
- Stabilized net profit is 3.2 million dollars per year net of VAT
- Asset value is 30.9 million dollars
- IRR (Internal Rate of Return) is 17.7%
- NPV (Net Present Value) 2 million dollars
- Overall pay-back period is 12.2 years
- Payback period for commercial investors is 13.3 years