Vagif Aliyev. The King of Kyiv developers. Part 2

Adventures of "Parus" and "Gulliver"

In 2000, inspired by successes in development, Vagif Aliyev once again approached his friend, the chief architect of the capital, Serhiy Babushkin. The businessmen proposed that he design a skyscraper plan. Babushkin eagerly took on the task and produced a project for a 34-story business center—a 136-meter high business center "Parus" in the central part of Kyiv on Mechnykov street.

Business Center Parus

The skyscraper in Kyiv was built thanks to two people—Babushkin himself and, of course, the former mayor Oleksandr Omelchenko. The project was pushed through the city council by force, personally approved by Omelchenko. It was clear that "Parus" threatened the district with a collapse. Moreover, the city center stands on the floodplains of former rivers. However, Omelchenko remained steadfast, and at his initiative, an entire square was cut down for the "candle," giving the construction a green light.

Direct construction of the skyscraper began in 2004. Activists immediately began to express outrage—the "candle" ruined the panorama of the historical city center. The allowable height for construction on Mechnykov street is 27 meters. However, the city authorities did not respond to the clear arbitrariness.

The class "A" building opened its doors three years later. When the first phase of "Parus" appeared in the city center, the city was paralyzed by traffic jams. The white-collar cars from the business center immobilized traffic and blocked sidewalks, courtyards, and lawns. Note that the underground parking of the building is designed for only 250 spaces, while about 1,500 people work in "Parus." Omelchenko had to fend off "uncomfortable" questions from Kyiv residents—how the mayor could allow a transportation collapse. But the official remained steadfast, claiming the problem was not in "Parus," but in the uncoordinated transport interchange.

In 2007, before the business center was put into operation, it was purchased by Dmytro Firtash. The money received from the deal was invested by Vagif Aliyev in another project, which over the years bore several names: "City Plaza," "Esplanada," "Continental," and eventually—Gulliver.

It is noted that when the business center started functioning, the company "K.A.N. Development" moved in immediately. The structure occupied half of the 6th floor. Also, in "Parus" moved the company "Olymp"—manufacturer of a famous vodka brand; the investment bank "Concord Capital," "Rodovid Bank," "Raiffeisen Bank Aval," and AVT "Bavaria." However, regular Kyiv residents could admire the skyscraper only from the outside or in the lobby of the first floor, as security did not allow further access. An electronic key card is required to access any floor of "Parus." The building’s interiors deserve special mention. In the lobby, there are storage lockers, and the center is serviced by 8 high-speed lifts that rise from the 1st to the 31st floor in 25 seconds, and the toilets are equipped with toilets from the elite German firm "GROHE." An interesting nuance is that "Parus" does not have designated smoking areas. Smokers need to go outside, but the employees of "K.A.N. Development" are allowed to smoke on the fire escape, supposedly out of old friendship.

By 2010, the business center "Parus" remained the tallest building in Kyiv. Its record was beaten by a 47-story residential complex on Klovsky descent, and then by BC "Continental."

In 2016, Vagif Aliyev decided to regain the "Parus" business center (he bought it out from his partner "Mandarin Plaza"). The transfer was cashless. In exchange for a share in "Parus," Aliyev committed to covering the debt of Firtash’s company "Advantech Plus" amounting to over 50 million dollars. According to journalists, "Advantech Plus" owed banks 1.3 billion hryvnias in 2015. Aliyev kindly agreed to help his old friend Firtash and took his share in "Parus."

The second creation of Vagif Aliyev is the Gulliver shopping center near the Sports Palace. Serhiy Babushkin worked on its creation since 2002, in parallel with the "Parus" project.

Shopping Center Gulliver

The developed project was much more down-to-earth: a 4-story rectangular box with an underground parking lot. The building’s initial working name was "City Plaza," colloquially dubbed "Parus-2." The fate of the new construction proved to be more dramatic than that of BC "Parus." Vagif Aliyev had to change the construction concept of "City Plaza" three times and go through a conflict between investors. The story of the Azerbaijani’s second skyscraper—a multifunctional complex Gulliver—deserves a separate narrative.

Gulliver is closely associated with the company "TRI O," which at that time was involved in all major constructions. In 1995, it was founded by the sons of the then-first vice-mayor of Kyiv Oleksandr Omelchenko—Oleksandr and Yan. They owned the land near the "Palace of Sports" metro station. The brothers wanted to build a gas station there, but this leaked to the press, causing an uproar. To quench the scandal associated with mega-construction, Oleksandr and Yan Omelchenko left "TRI O" but only formally. At the beginning of the 2000s, Vagif Aliyev became one of the owners. "TRI O" initially rented the land plot near the metro, and then purchased it for less than 2 million dollars. Plus, somehow, another hectare of land joined the existing area.

For several years, Aliyev was considered the sole investor in the construction of "City Plaza" near the Sports Palace, and "TRI O" was masked as a subsidiary of "Mandarin Plaza." In reality, the developer initially had a secret partner who resolved many financial issues—Serhiy Veselov.

Serhiy Veselov, Aliyev’s secret partner in Gulliver

The businessmen met in the ’90s when they worked together on the gas business of Ihor Bakay. Additionally, Serhiy Veselov at that time was a partner of Kostyantyn Zhevaho.

The "City Plaza" project began actively. Thanks to Serhiy Babushkin’s protection, it passed through the Kyiv City Planning Council. However, Aliyev was tempted and added 2 more floors to the building. Thus, the deputies agreed to 70,000 sq. meters of "City Plaza."

In the first months after the start of construction, Vagif Aliyev encountered numerous surprises. For instance, the underground parking required relocating the engineering networks of neighboring buildings. The replacement of an underground high-voltage power cable cost more than 3 million dollars. The developer had to seek additional permission from the Kyiv City Council to demolish a public restroom that hindered construction. Additional expenses on "City Plaza" exceeded expectations. As a result, the investors decided to expand the building’s footprint and change its designation. "City Plaza" transformed into an elite residential complex with 33 floors and an area of 43,000 square meters. The complex’s name also changed to "Esplanada."

Luxury housing project "Esplanada"

Changing the concept delayed construction by 3-4 years. While Babushkin’s architectural bureau was creating a new project, funds in "TRI O" were disappearing. It was possible to sell "Esplanada," but Vagif Aliyev decided to take loans from banks. In 2005, "Ukreximbank" and "Raiffeisenbank Ukraine" issued a total of 34.5 million dollars to the structure. Construction resumed after a year. However, Aliyev changed his mind about building a residential complex. He was inspired by the success of the "Parus" business center: even before the interior work was completed, practically all premises were rented out. In BC, the rental cost per square meter was 840–960 dollars; per year—35–40 million dollars. "Esplanada" could bring in 120–140 million dollars per year, but a lifetime annuity of tens of millions of dollars from businessmen was more attractive.

The residential complex "Esplanada" transformed into a new business center with expanded commercial space. Banks easily provided Aliyev with loans. Ukreximbank and Oschadbank allocated another 61.6 million dollars. In 2007, active construction of the BC began. A year later, a 33-story rectangular box appeared in the center of Kyiv. Tenants were recruited by the consulting company Jones Lang LaSalle. Its managers suggested renaming the unsound "Esplanada" to "European Quarter." Aliyev didn’t like it and named the complex "Continental."

Continental with two office towers in 2010

The first to rent space in "Continental" in 2008 was the supermarket "Furshet," and two more floors were allocated for a cinema. To complete the business center, "TRI O" again took loans from Ukreximbank and Oschadbank—177.6 million dollars. How these funds were obtained during the peak of the crisis remains a mystery. However, in 2009, the project’s concept changed again. This was due to the drop in rental rates and "Continental" no longer breaking even. Investors expanded the complex once more—a tower for offices appeared in the project. After the crisis, construction progressed at a snail’s pace, but the project was not frozen.

In 2010, Vagif Aliyev and Serhiy Veselov quarreled so fiercely that construction was frozen. Both parties refused to comment, but court materials shed light on the conflict. As it turned out, in October 2010, a new shareholder appeared in "TRI O"—the British company Unicon Development Ltd. The point is that Aliyev and Veselov were not paying bank loans. The financial institutions held not only the building of the complex in pledge but also the shares of the two co-founders of "TRI O"—the British Graph Limited and Arch Consortium Limited, which were owned by the businessmen. The banks transferred the securities to Unicon Development Ltd. But here a curious nuance, according to SKELET-info, Unicon belongs to Veselov, and he gained control over "TRI O" by arrangement with the leadership of Oschadbank.

At the end of 2010, Veselov became the new CEO of "TRI O." He changed the name of the long-term construction to Gulliver and changed key managers. Moreover, as it turned out later, his business partner was Oleksiy Kucherenko—former Minister of Housing and Utilities—Chairman of the Board of "Intergaz," a partner of Kostyantyn Zhevaho in the Poltava Ore-Dressing and Processing Enterprise and the KRAZ car factory.

Oleksiy Kucherenko, co-owner in Gulliver

As for Vagif Aliyev, he exited Gulliver after the conflict with Veselov. The skyscraper was completed without his involvement.

Controversial Constructions

Success did not always accompany developer Vagif Aliyev. His constructions were halted by the Kyiv City Council, pelted with eggs by activists, and neighbors of adjacent buildings still remember them fondly.

A dark period in Aliyev’s life began in the 2000s when the businessman met the young politician, businessman, representative of the "elite social circle" Vadym Stolar. The tandem became known to Kyiv residents when in 2002, the developer company "Alliance-Center" began global construction near the "Teatralna" metro station. Within a few months, it became the most scandalous construction in Kyiv’s history. In addition to being conducted near the metro entrance, creating additional pressure on the walls, the new building was being erected 6 meters from the facade of a 7-story building—a monument of Soviet architectural heritage. However, Aliyev "reassured" everyone. He said that the builders had designed a sarcophagus to protect the metro from pressure.

Construction by Aliyev at the Teatralna metro station threatened the collapse of the underground

Activists raised alarms, organizing protest actions. It took 5 years to recognize the construction as dangerous for the metropolitan metro. In 2007, the Kyiv City Council revoked the decision to allocate the land, but the businessmen continued construction.

Vagif Aliyev appealed to court to challenge the Kyiv City Council’s decision. During the legal proceedings, 4 floors of the new building were constructed. The Appeals Court did not yield to the developer and declared the construction illegal. In 2011, a special Kyiv City Council commission decided to freeze the construction, demolish it, and build a square at "Teatralna" at the developer’s expense. At this time, employees of the neighboring building—the staff of the National Academic Theater of Russian Drama named after Lesya Ukrainka—even wrote and sent a letter to Russian President Dmitry Medvedev. They asked him to protect the Russian theater.

But Aliyev and Stolar outplayed everyone. They gifted the building to the city along with 10 million hryvnias for accompanying works. The "box" with the plaque stating that it was donated by Vagif Aliyev and Vadym Stolar was allocated for the needs of the Kyiv History Museum. According to the project estimate documentation, the building’s construction cost was 50 million hryvnias.

Another project Vagif Aliyev aimed to implement in 2008 jointly with "K.A.N. Development" was the luxurious residential complex Diamond Hill with indecently elite apartments. The 18-story "monster" with a total area of 49.5 thousand square meters was situated above Askold’s Grave and the monument to Apostle Andrew, altering Kyiv’s visual landscape.

Diamond Hill Residential Complex stands on the site of the Arsenal factory kindergarten, which was demolished

The story of Diamond Hill began in 2004 when the Kyiv City Council leased a land plot to LLC "Vant." A departmental kindergarten of the Arsenal factory was located on it. Officials allowed the kindergarten to be demolished. Notably, no one knew about LLC "Vant" then. It was a one-day firm created for apartment construction. In 2007, LLC "Vant" officially purchased the land for 17.2 million hryvnias.

The Diamond Hill project was approved without problems. Despite being planned for the very edge of the Dnipro hills, known for their landslides, the new construction threatened nearby houses with its underground parking and blocked the view of historical Kyiv. The project documentation was already signed by the familiar name, Sergiy Babushkin.

In 2010, the Ukrainian Antimonopoly Committee unexpectedly allowed the offshore Heritage Properties International AB (Stockholm, Sweden) to acquire a controlling stake in LLC "K.A.N. Development" (Kyiv), which, in turn, owned half the shares of LLC "Vant." According to open sources, the owner of Heritage Properties International AB was Dmytro Firtash.

Another failed object of Vagif Aliyev was the business center Senator on Moskovska street. Its scale is mind-boggling. With panoramic windows, the elite class "A" office real estate offers a beautiful view of the Lavra and is just a stone’s throw from the General Prosecutor’s Office. The building was finished with natural marble, equipped with an underground parking lot, and contains a fitness center.

Business Center Senator

Senator was put into operation at the end of 2013, during the events in Maidan. The financial crisis hit the most exclusive segments, including the office center. For several years, the gloomy marble building stood empty on one of Kyiv’s central streets. In 2016, the head of "UkrTransNafta," Mykola Havrylenko, leased offices in Senator for 47 million hryvnias. He paid the rent in advance for 4 years—until September 1, 2020.

Mykola Havrylenko rented offices in Senator for 47 million hryvnias

Vagif Aliyev failed with his much-desired project Shopping Center Ocean Plaza near "Lybidska" metro station. The idea of building an entertainment center belonged to Aliyev, not Vasyl Khmelnytskyi —the founder of "Kyiv Investment Group," as is commonly believed. Khmelnytskyi wanted to build a skyscraper with a hotel and business center there, but the experienced developer convinced him otherwise. According to the plan, Vasyl Khmelnytskyi and Vagif Aliyev were supposed to work on Ocean Plaza. However, the latter went to warm countries for a month, and upon returning, discovered that his name was not among the developers.

Higher and Faster

In 2016, the Kyiv commercial real estate market faced a shake-up. Almost simultaneously, two supergiants opened: Vagif Aliyev’s Lavina Mall and Rinat Akhmetov’s TsUM ESTA Holding. There is fierce competition between the malls.

Aliyev focused on entertainment. Lavina features a large light and music fountain, as well as an amusement park with roller coasters.

Vagif Aliyev announced the construction of a grand project — Ocean Mall. Essentially, this is the second phase of Ocean Plaza. Construction work is in full swing. The opening is promised in November 2018.

This is what Ocean Mall will look like

Simultaneously, the developer is "working" on the Blockbuster Mall shopping and entertainment center. Its opening is scheduled for 2018.

Vagif Aliyev is now among the top 100 richest people in Ukraine.

About Titles, Family, and Luxury

Honorary Consul of the Russian Federation. Few know that in 2008, Vagif Aliyev became the Honorary Consul of the Russian Federation in Ukraine. This happened as part of the "Ukraine-Russia" plan for 2008. Russia then opened its first consulate in Chernihiv, as the region is a border area with major transportation routes passing through it. The Russian Ambassador Viktor Chernomyrdin, a close friend of Aliyev, was present at the ceremony.

In 2010, Aliyev planned to invest $100 million in the construction of a shopping and entertainment complex or hotel in Chernihiv. The city authorities, represented by Mayor Oleksandr Sokolov, even allocated land for the businessman and his projects. At the last moment, the developer changed his mind.

His own ensemble. Vagif Aliyev has maintained his own ensemble for about 10 years. They do not tour anywhere and perform only in the circle of friends. Thus, the businessman realized his childhood dream of becoming a singer.

Successful daughters. Vagif Aliyev has 4 daughters – the older ones, Natella and Alina, are involved in business.

Natella Vagif gizi Aliyeva is better known to Ukrainians as Natella Krapivina. She is the producer of Svitlana Loboda and the creator of the large-scale project "Orel i Reshka". PHOTO 20

Vagif Aliyev’s daughter Natella married the son of his partner at Mandarin Plaza, Krapivin — Dmytro. After the divorce, she kept the loud surname.

Together with her younger sister Alina, they own the Aldo Coppola salon network.

Vagif Aliyev has a dream. He shared it in one of his interviews. The Azerbaijani dreams of building a seven-star hotel in the center of Kyiv. We can only wait.

Aryna Dmytriyeva, for SKELET-info