“They Told Us It Was Impossible”: Alterra Group’s 10-Year Journey

Hennadii Hrynenko, Commercial Director of Alterra Group

Today, many people know Alterra Group as the developer behind PORT, the largest logistics center in western Ukraine. What few know is that this project almost never happened. At one point, international consultants told us that it was impossible to build proper warehouses on that plot of land near Lviv. And even if something were built, it would take a long time and would only make sense for large terminals.

We believe that anything is possible as long as it doesn’t contradict the laws of physics. That belief led us to build PORT, which today is home to 160 small and medium-sized businesses.

Over ten years, we’ve accumulated many such “impossible” stories. That’s why we decided to share some of the brightest moments of our journey—from old Soviet warehouses to ambitious plans for international expansion.

Turning “This Is Impossible” into a Project with 160 Clients

At Alterra Group, we’ve always believed that the most interesting projects start with the words “this is impossible.” The PORT warehouse complex near Lviv is a clear example.

At the end of 2020, Lviv was not yet a logistics hub. It was a typical regional city without a strong industrial base. International consultants warned our partners that warehouses would not succeed on that particular site—and if they did appear, they would only work as large terminals for corporations.

We saw potential where others didn’t and decided to act. Our concept was simple: modern businesses need quality spaces. It doesn’t matter whether the business is small or large—everyone needs professional infrastructure, good architecture, and a convenient location. The result speaks for itself: 160 clients who work successfully at PORT today and prove us right every day.

Port.Lviv Logistic Center

Creating a Small-Warehouse Market That Didn’t Exist in Ukraine

Ten years ago, small and medium-sized businesses in Ukraine had only two options on the warehouse market: rent part of an old Soviet factory or buy a massive warehouse of several thousand square meters that they simply didn’t need. There were no middle-ground solutions.

Traditional industrial development meant large buildings, large units of 3,000–5,000 square meters, and a focus on big companies. Small businesses were left with outdated industrial zones without infrastructure or prospects.

We decided to launch what seemed impossible: a market for small, high-quality warehouses available for ownership. Units from 175 to 2,000 square meters, with professional management, modern infrastructure, and thoughtful architecture.

Why is ownership so important for business?
First, it eliminates the risk of a landlord influencing rental rates—entrepreneurs control their own costs.
Second, real estate capitalizes the business, creating a tangible asset that increases the company’s value.

Over the years, we’ve sold 260 such units with a total area of 170,000 square meters. Today, Ukrainian entrepreneurs can grow their businesses in their own modern spaces instead of renting warehouses in Soviet-era industrial zones.

Prostir Business Hub

Ten Years in Numbers: Nearly 1,000 Clients and Remarkable Records

And now the numbers—because they often speak more honestly than words. Over ten years, we’ve worked with 924 clients, ranging from spaces as small as 3 square meters to as large as 5,000 square meters for a single client.

Some have been with us since the very beginning of Alterra Group. For example, the company “Eurosouvenir”—on December 30, we’ll celebrate ten years of partnership. We’re grateful to them and to all our clients for their long-term trust, which is the foundation of the ecosystem we strive to build.

These ten years brought tears, failures, and records. One of our largest deals was a build-to-suit warehouse project worth USD 12.5 million.

In October this year, we set a new record: 19 deals in 22 working days. Every day, someone chose us for their business—even during wartime, even amid economic uncertainty. That means a lot.

Setting a Trend for Human-Centered, Beautiful Warehouses

Over these ten years, we’ve proven that commercial—and industrial—real estate can be beautiful, not just functional. With this idea in mind, we created a series of mosaics for our Obriy shopping centers. These artworks are already installed at our sites in Tatariv (Ivano-Frankivsk region) and Ukrainka (Kyiv region).

Peretyn Logistic Center

More than that, we showed that industrial projects should be about people, not just production and storage. Employees need comfortable lunch areas, attractive offices, and presentable event halls for meetings with partners. When people work in well-designed, beautiful spaces, productivity increases. When clients visit spaces that are worth showing, trust in the company grows automatically.

We’ve also changed the approach to industrial infrastructure. Instead of closed industrial zones, we create full ecosystems with R&D centers, prototyping labs, and event halls. This is the principle behind our “Formatcia” industrial park network—designed to give businesses a complete environment for growth.

What “Impossible” Things We Plan for the Next 10 Years

After such an intense decade, we’re already planning not just the next ten years, but the next fifty. By 2026, we plan to build an additional 191,500 square meters. Our plans include more than ten shopping centers, several business centers, industrial parks, and an entirely new construction direction.

Our largest project is “Formatsia. Vinnytsia,” an industrial park covering 163,544 square meters. It’s the second project in our Formatsia network. We’re currently working on the first phase in Vinnytsia, but our ambitions go much further. Alterra Group plans to launch several more industrial parks across Ukraine. This project is meant to become a benchmark for industrial parks that genuinely impact regional economies.

Formatsia Industrial Park

The biggest “impossible” goal lies ahead: becoming a successful international Ukrainian developer. We truly believe this is possible. Our HR agency within the Formatcia industrial park network already helps clients enter export markets. Now, we’re ready to expand internationally ourselves—bringing the quality standards we developed in Ukraine to the world. We also aim to prove that Ukrainian architecture and the Ukrainian approach to beauty and functionality can become an international benchmark.

And one more ambitious goal: transforming Ukraine’s economy from resource-based to industrial through a network of industrial parks. Sounds impossible? We heard the same about PORT. And we’ve already proven—and continue to prove—that anything is possible if it doesn’t contradict the laws of physics.