Vasil Kisil & Partners Successfully Represented a Construction Company in a Dispute related to the Termination of Land Lease Agreement


Vasil Kisil & Partners has successfully represented Rele Construction Company, which specializes in the construction of residential and commercial property, in a dispute with the Kyiv City Council in relation to the termination of the land lease agreement made for 50 years. Courts of all three instances acknowledged that the builder reasonably claimed terminating the lease agreement for the land plot made available to meet the construction needs as the construction had been completed and the title to the constructed premises had passed to investors and buyers.

"10 to 15 years ago, in the times of the "building boom," builders tried to obtain land plots for their construction projects for as long as possible. However, after completing the construction and selling the property, builders still had to pay the rent until the lease period expired, while local councils did not agree upon terminating such agreements early without making similar agreements with new owners of the property, as they were interested in getting revenues to local budgets. In turn, new owners were not interested in entering new land lease agreements and paying the rent. This problem has become particularly pressing for property developers in the recent 2 years as the normative valuation of land and rent rates increased significantly. In such a situation, property developers who act as lessees, after completing the construction and commissioning the property, must resort to court to seek the termination of the land lease agreement," says Oleg Kachmar, counsel at Vasil Kisil & Partners.

The team that acted in court for Rele included counsel Oleg Kachmar, senior associate Yuriy Kolos and associate Oleksandra Bortman.