AIM-listed developer KDD Group has signed an agreement with engineering company Kyiv Zhytlo-Invest, the general contractor of its flagship Sky Towers office and hotel project in Kiev, for the development of the scheme involving construction costs of roughly $455 mln (EUR 331 mln).

In total, the project will require an investment of just over $512 mln (EUR 371), $110 mln of which have already been paid.

Sky Towers is a premium business centre located on a 0.74 hectare freehold site at the edge of the Central Business Distrcit. The project is designed to have two towers, ranging from 34 to 47 storeys, with a gross area of 225,000 m2. The construction will be completed in four phases, with Phase I involving a 250-room hotel due for completion in May 2012, in time for the Euro 2012 football championships. The last phase is planned to be completed in mid-2013.

Separately, KDD announced that it has signed a loan agreement with the Ukrainian Export-Import Bank for a new $58 mln credit facility for its PecherSky residential project. Construction of PecherSky was suspended in late 2008 on the back of the credit crunch.