A defense legend for sale: The Kyiv automobile plant KARZ is being auctioned for 44 million hryvnias.
The former military factory on Vasylenko Street is scheduled to be auctioned with a commencement cost of 44 million hryvnias – including two staff members, a solitary vehicle, and a sizeable land area.
“Informator” reports on this situation.
During the Soviet epoch, military KamAZ trucks underwent repairs at this location, and presently they are in search of an investor to prevent the business from total failure. The Kyiv Automobile Repair Plant (KARZ), situated at 1 Mykola Vasylenko Street, is being vended through a public auction. The auction is set to occur on August 4th via the Prozorro.Prodazhі platform. The last chance to submit offers is August 3rd, before 8:00 PM.
The State Property Fund communicated this information, emphasizing that the establishment presents an appealing prospect for investing in a pre-existing enterprise or transferring a current one. The factory was established in 1944 as a military-focused entity and functioned under the jurisdiction of the Ministry of Defense for several decades. In the 2000s, KARZ not only performed truck repairs but also constructed KamAZ vehicles, upgraded armored vehicles, and produced tipper trucks and trailers.
It also possessed another intriguing specialization. Upon request from the Ministry of Defense, the plant prepared equipment for parades and involvement in global peacekeeping endeavors. This encompassed not just technical upkeep but also refining the equipment to “parade-ready condition.”
Currently, the organization technically still exists, but is largely inoperative: as indicated by official figures, it only employed two individuals in 2024. Over the prior three years, KARZ generated revenues surpassing 41 million hryvnias, yet concluded 2024 with a deficit. The enterprise has accrued over 29 million hryvnias in overdue obligations, including unpaid salaries and budgetary debts.
Be that as it may, the asset is still attractive given its positioning and infrastructure. The property ensemble comprises 71 properties totaling over 26,700 square meters, four plots of land with an aggregate area of 9.8 hectares, and 22 vehicles, although only one is currently retained. Above 10,000 square meters of this space is being leased.
The auction will be conducted as an open competitive bidding process with a progressive price escalation. The State Property Fund of Ukraine is acting as the facilitator. Notwithstanding the property’s difficult financial circumstances, the chance to procure a well-established industrial location within Kyiv, replete with background, may pique the interest of both developers and industrial backers. The auction’s end result will determine whether KARZ will be granted a new lease on life, as an industrial icon of Kyiv stands at a turning point.
