KDD refinances EUR 185m Sky Towers debt

Ukrainian real estate developer and investor KDD Group said it has reached an agreement in principle with the State Export-Import Bank of Ukraine (ExImBank) for the restructuring of a credit facility of up to $250 mln (EUR 185 mln). The loan was granted for the development of the Sky Towers project in Kiev.

Under the deal, the maturity date of the loan is to be extended from 25 May 2012 until 25 May 2014. The company said that the agreement remains subject to a number of conditions including KDD Group's capability to arrange funding for the remainder of Sky Towers. Alexander Levin, Chairman of KDD Group, said that the operation 'represents a significant step forward for KDD, as it will potentially enable the group to continue active construction works'.

Sky Towers is located close to the city centre and Kiev's central railway station. It will consist of two towers of 34 and 47 storeys offering 224,500 m² of hotel, office and retail space. The project will include an underground parking area with 841 spaces. Construction work started in the fourth quarter of 2007 and is due for completion in the second quarter of 2012.

KDD Group has a total of 2.7 million m² of space under development in Kiev. The company is said to be in negotiations to sell a 50% stake in its Metro City project, which will offer 227,200 m² of retail space and 145,000 m² of office accommodation as well as a hotel on the left bank of the Dnipro river.