In Ukraine, a land lease right is a full-fledged property asset: it is sold, contributed to charter capital and pledged to banks. For agribusiness it is the dominant form of land control — the land banks of Ukrainian agriholdings consist mostly of lease-right portfolios rather than owned plots, which makes leasehold valuation one of the most practically important disciplines in the country's asset market.
Kanzas values land lease rights — from a single plot to portfolios of thousands of contracts — on an IVS-consistent basis, with English-language reports for international clients.
When You Need a Lease Rights Valuation
- assignment or sale of lease rights — setting a supportable transaction price;
- contribution in kind — capitalizing lease rights into a company's charter capital;
- collateral — lease rights pledged to secure bank financing;
- agricultural M&A — acquisition of a farming business together with its land bank;
- IFRS reporting — fair value of right-of-use assets under IFRS 16 Leases;
- disputes — defending lease rights and quantifying compensation for their loss.
Where the Value Comes From
A lease right is worth the advantage it carries: when the contract rent sits below the market rent, the lessee earns an economic benefit every year — and that benefit, multiplied over the remaining term, is the value of the asset. The key parameters are therefore the remaining term, the contract-versus-market rent spread, renewal rights and assignability. A long contract with renewal rights at a below-market rate is a valuable asset; a short contract at market rent may be worth little — the report shows exactly why.
Methodology
The income approach leads: capitalization of the lessee's advantage over the remaining contract term, with renewal probability treated explicitly. Market comparison applies where transaction evidence exists — above all the results of Ukraine's public land auctions, through which state and municipal lease rights are sold. Emphyteusis — the long-term agricultural use right — is valued on the same principles.
Land Bank Portfolios
A distinct class of engagements is the valuation of lease-right portfolios running to hundreds or thousands of contracts. Portfolio parameters join the contract-level ones: the maturity profile of expiry dates, the share of contracts with renewal rights, lessor concentration and the contiguity of land massifs. Valuing lease rights within the asset base of agricultural enterprises is an established part of our practice, including bank financing and corporate transactions — and, for international buyers of Ukrainian agribusiness, the land bank valuation is usually the heart of the deal.
Questions and answers
Can lease rights be sold in Ukraine? Yes. Private-land lease rights are assigned on the terms of the contract; state and municipal lease rights are sold through public land auctions. An independent valuation sets the supportable price either way.
How is this different from valuing the land itself? The subject is the right, not the plot: its value is driven by the remaining term, the rent spread and renewal rights. The plot and the lease right over it are two different assets with two different values.
Do you value right-of-use assets under IFRS 16? Yes — we determine the fair value of lease-based right-of-use assets for financial reporting and audit purposes.
How much does a lease rights valuation cost? For a single plot — after reviewing the contract and the purpose; for a portfolio — after receiving the contract register. Fee and timeline are fixed before the engagement letter is signed.
We work with international clients in writing: email us at [email protected] or message us on Telegram, Viber or WhatsApp. Send the lease contract or portfolio register for review and we will come back with a fixed quote and timeline.
Related services: Land Valuation · Agricultural Land and Farm Valuation · Easement Valuation · Land Share (Pai) Valuation
Related services: Corporate Rights Valuation · Valuation for Lending · IFRS Valuation · Valuation for Court
