After months of speculation, developer Hillwood confirmed Wednesday that it will build a 43-story tower in its Victory project near downtown Dallas.

Work on the building is already under way at Olive Street and Victory Avenue near Stemmons Freeway.

The Victory Tower will contain a 120-room Mandarin Oriental Hotel, 90 condominiums, 275,000 square feet of office space and lower-level retail.

Designed by noted architect Kohn Pedersen Fox, the tower is being constructed just west of the new W Dallas Victory Hotel and Residences and will open in 2009.

"The entry of Mandarin Oriental, best known for its unsurpassed properties in cities like Hong Kong, London and New York City, will raise the bar for hospitality and luxury living in this region," Hillwood chairman Ross Perot Jr. said in a news release.

Condominiums in the building will be among the most expensive offered in Dallas – priced from $850,000 to more than $6 million.

The Victory Tower will be the tallest building constructed in the area since the Cityplace tower opened in 1988. It will be even larger than the W Dallas building, which opens next month adjacent to the American Airlines Center arena.

The Mandarin Oriental will occupy the first 11 floors in the skyscraper and will be the international hotel operator's first property in Texas.

"This project presents an ideal opportunity for Mandarin Oriental to extend our luxury brand in another important business and leisure destination in the United States," Edouard Ettedgui, group chief executive of Mandarin Oriental, said in Wednesday's announcement.

The hotel will include a luxury spa plus a half-dozen restaurants and bars. Condos will be in the top half of the building, above office space.

With the start of Victory Tower, eight buildings are now under construction in the 75-acre project on the northwest corner of downtown.