Investment company Dragon Capital plans to restore operations at the Grand Business Center in central Kyiv in the first quarter of 2027 after it was damaged in a Russian missile strike in December 2024. The property, which had been more than 70% occupied before the war, is currently undergoing large-scale restoration, with costs estimated at approximately $5 million.
The Grand Business Center, with an area of 10,630 sq. m, is located on Velyka Vasylkivska Street and was considered one of the most attractive office assets in Dragon Capital’s portfolio due to its central location and views of the Catholic church. The building was damaged on December 20, 2024, during a missile attack on Kyiv: missile debris hit the upper floors, the facade, engineering systems, and interior finishes.
Part of the losses was covered by an insurance payout, with the company receiving about UAH 20 million (approximately $456,000). Dragon Capital is covering the remaining restoration costs with its own funds.
Despite wartime risks, the company decided to accelerate the restoration of the property. According to Natalia Kravets, Commercial Director at Dragon Capital Property Management, the decision was driven by a shortage of high-quality Class A office space in Kyiv. Strong demand for such premises became the key factor behind the investment in restoration.
The works began in 2025 after a technical inspection of the building and the receipt of expert conclusions. The frame of the destroyed upper floors has already been restored, internal engineering works are underway, and preparations are in progress for the repair and partial replacement of the facade.
Before the war, a significant share of the space in the business center was already occupied by tenants, including international IT and biotechnology companies, as well as Ukrainian technology and manufacturing enterprises. According to the company’s estimates, some former tenants are ready to return, while there are also new potential clients.
The situation with Grand reflects a broader trend in Kyiv’s office real estate market: according to consulting companies, about 70,000 sq. m of office space was damaged or destroyed by shelling in 2025 alone, while the city’s total office stock declined by 3.4%.
Some business centers in Kyiv are being restored, but certain projects remain frozen due to the scale of destruction and the risks involved. In other properties, including office complexes within the Forum network, repairs and partial restoration are also ongoing, although some buildings have still not been fully restored.
Dragon Capital notes that despite the ongoing threats, investing in the restoration of office real estate remains economically viable due to steady demand for quality office space in the capital. The company emphasizes that even under wartime conditions, Kyiv continues to require modern business spaces, while the market is gradually adapting to new risks.
