Another attempt to sell

At the end of February, the electronic auction system OpenMarket will hold another attempt to sell the unfinished skyscraper Sky Towers. According to the platform's press release, the lot's starting price is 662.3 million UAH, and the auction is scheduled for February 27.

The lot price was reduced to 662.3 million UAH due to a number of previous failed auctions and market risks.

— OpenMarket press service

Brief history of the project

Construction of Sky Towers was started by KDD Group in 2007. The complex is located on a 0.74-hectare plot at the intersection of Sholudenka Street, Beresteiskyi Avenue and Borshchahivska Street. The project envisions two towers of 47 and 34 floors with a stylobate; the object's readiness is estimated at approximately 51%.

According to LIGA.net, among the developer's shareholders in 2021 were U.S. citizen Oleksandr Levin, structures of Andrii Verevskyi's Kernel agribusiness, and the Konstantinovski brothers. During the 2008 crisis the company took out a loan from Ukreximbank equivalent to about 3 billion UAH, and construction stopped in 2015. In 2021 the bank won a court case regarding the loan debt, after which the claim rights and the object itself began to be put up for sale.

Price dynamics — what stands out

The problem is not a single failed auction: in 2021 the starting price was 7.1 billion UAH (the auction failed). The bank subsequently lowered the price: almost 5.6 billion UAH in May 2023, 1.1 billion UAH in September 2024 and 772 million UAH in November 2024. The current offer is — 662.3 million UAH.

Why the price is falling

There are several interconnected reasons: first, the high cost of completing construction — 51% readiness means large additional investments in engineering, the façade, infrastructure and safety. Second, legal and reputational risks surrounding the loan history and property rights reduce the lot's attractiveness. Third, macroeconomic factors — the war situation, devaluation and low interest from major investors in risky downtown development projects — put downward pressure on the valuation.

What's inside the project — and how much it would cost to complete

Technically, the complex was supposed to include offices, a shopping gallery, a separate bank building and an eight-level underground parking garage with 878 spaces. Some areas were intended for restaurants, conference halls and retail space. Recreating this complex would require substantial capital investment — and this is exactly why a buyer must not only purchase the structure but also have a plan and the resources to complete it.

Consequences for the bank, the city and the market

For Ukreximbank the sale is a way to close a problematic asset and minimize losses. For Kyiv — a potential opportunity to gain jobs, tax revenue and restore an urban plot, but only if the buyer can and wants to bring the project to completion. If the lot is not sold again, the risk is an extended status as an "urban wound" and increased costs for the bank to maintain the legal case.

Summary

The reduction of the starting price to 662.3 million UAH is more than arithmetic: it is a test for the real estate market under conditions of heightened uncertainty. The sale on February 27 will show whether investors are ready to accept the risks of completion and invest in the restoration of urban space, or whether the asset will remain in the bank's portfolio as a reminder of loss-making loans and unfinished plans.

Now it's up to the auction participants: will Sky Towers become a growth point for Kyiv — or another unfinished project that only benefits the market for debt write-offs?