The unfinished Sky Towers complex in the center of Kyiv is once again up for sale on the OpenMarket electronic trading system (SE “SETAM” of the Ministry of Justice of Ukraine) at a starting price of UAH 662.3 million (including VAT), according to the SETAM press service.
The auction is scheduled for February 27. The guarantee deposit is UAH 33.1 million. The starting price of the lot has been reduced by 1.1 times after an attempt to sell the asset in 2024 (UAH 771.9 million) and by 10.6 times since the first auction in 2021 (UAH 7.1 billion).
According to the announcement, the unfinished construction project is located on a land plot of 0.74 hectares. The total construction area is 51,300 square meters, with 51% of the project already completed.
The building design includes two towers with 47 and 34 floors. The total area of the complex will be approximately 225,000 square meters. The complex will include offices, retail space, a separate bank branch building, and an eight-level underground parking lot with an area of 51,600 square meters for 841 parking spaces.
“Sky Towers is not just an unfinished construction project, but an opportunity to implement one of the most ambitious projects in the capital. The auction will allow us to find an owner who will be able to bring it to a logical conclusion,” said Roman Osadchuk, CEO of SETAM, in a statement.
As reported, the construction of Sky Towers on 13 Beresteysky Avenue (formerly Peremohy Avenue) could have become the first Ukrainian skyscraper over 200 m (project height 214 m). Construction continued until 2015, but only reached 28 floors out of the planned 47, after which it was halted. According to Alexander Dyomin, director of the development company Agency for Office Construction, the property was not preserved.
The owner’s loan agreement with Ukreximbank was signed in 2007. In May 2012, KDD Group, which found itself in a difficult financial situation, signed an agreement to sell the Sky Towers project and the Zazimya residential complex to the American company Cimbrorum Holdings LLC for $202.4 million. Of this amount, KDD was to receive $12 million in cash, while the rest of the amount consisted of obligations, in particular $168.4 million to Ukreximbank. At the same time, the bank increased the credit line for the completion of Sky Towers to $193 million, with the Office Construction Agency acting as the borrower.
In 2019, the parties signed a financial restructuring plan, but the developer continued to fail to fulfill its obligations. In early 2021, the Kyiv Commercial Court upheld Ukreximbank’s claim to recover UAH 5.95 billion in debt from the Office Construction Agency for a loan to finance the construction of Sky Towers.
According to YouControl, the founder of Office Construction Agency LLC is TKD Invest LLC, and the ultimate beneficiary is listed as David Israel (Takadero Trading Limited, USA).
