KDD Group to renew work on PecherSKY by end-2009

KDD Group (KDDG LN) plans to renew construction on its PecherSKY residential project in Kyiv by the end of 2009, Vice President Petr Radchuk said yesterday, according to Interfax. KDD now plans to finish the structure in 2012, vs. its previous target of 2010. KDD is continuing work now on the Sky Towers office building in Kyiv. Andriy Gostik: Although the reassurance from KDD Group’s management that the company is continuing construction can be supportive for its stock price, we still regard the risk of insufficient funding as high for the company. We have doubts that the developer will be able to resume work at the PecherSKY project as planned, especially given the fact that residential property continues to be least demanded at this point.