Why Ukraine
WHY UKRAINE:
We believe attractive opportunities may exist in this early phase. of Ukraine’s recovery — when valuations remain deeply discounted and institutional capital is still preparing to enter the market. Current valuations may offer favorable risk-reward characteristics.
EU Accession & Convergence
Ukraine is formally on the path toward EU accession, which is expected to accelerate long-term capital inflows, institutional investment, and infrastructure alignment. Convergence dynamics are already visible as Ukraine integrates into EU supply chains, supported by an average gross monthly wage at roughly 26% of Poland’s [1,2]. Over time, accession is expected to narrow this gap, driving wage growth, investment competitiveness, and ultimately the revaluation of urban real estate in the same way it occurred in Croatia, Poland, and the Baltic states.
Low Direct War Exposure in Core Markets
While nationwide housing losses are estimated at 10–13%, the destruction has been highly concentrated near the front, not across the country. Our fund is not geographically exposed to active conflict zones — and the three core cities have experienced only limited, localized damage:
Kyiv
< 1% of its ~800,000 apartments affected
frontline is over 500 km away
Lviv
fewer than 200 of ~280,000 units impacted
located nearly 900 km from the nearest fighting and farther from Russia than Vienna is from Berlin.
Odesa
~1,200 of ~380,000 units damaged/destroyed
a strategic port city but still separated by a substantial distance and the geographic barrier of the Dnieper from the ground front.
The physical destruction most associated with media coverage has occurred in a small number of eastern and southern regions. In contrast, the western and central urban cores where we are investing remain structurally intact, fully functional, and economically active — creating a rare opportunity to acquire undervalued assets in cities that will benefit first from recovery capital, EU integration, and the return of tourism.
Capital
Flows & The “Wall of Money”
Ukraine’s reconstruction is still in its early deployment phase, with ~$524 billion [3] in identified rebuilding needs and $12B+ already committed for reconstruction [4) and over $100B in humanitarian, financial, and other aid pledged [5]. Donor investment vehicles are expected to deploy $17- 18 B [6) annually into infrastructure, housing, and municipal upgrades alone over the next decade. EU leaders have endorsed a plan to use frozen Russian assets of over $150 B towards Ukraine's reconstruction [7]. 100s of projects are already underway [8]. This public capital forms a “wall of money” that historically triggers a second wave of massive private investment once risk is repriced — the same pattern seen in Croatia, Poland, and the Baltics.
UPPF is positioned ahead of that wave, acquiring prime residential assets before liquidity and valuations surge.
Economic Foundations
• Agriculture: 25% of the world’s best black-earth farmland[9]— capable of feeding 600 million people [10].
• Labor: Average gross monthly wage at roughly 26% of Poland [11,12] — ideal for manufacturing and logistics.
• Industrial Parks: 105+ planned/ under construction [13], mostly in the west, with tax incentives.
• Natural Resources: Titanium, lithium, and rare-earth elements critical for Europe’s energy transition.
• Infrastructure: EU- and U.S.-funded reconstruction improving key corridors near Lviv [14] and the Polish border.
Tourism and the Lifestyle Economy
Kyiv, Lviv, and Odesa combine cultural heritage, modern hospitality, and rising demand for global-standard housing. These are affordable locations for tourism, offering exceptional value and low operating costs.