4 Feb 2008 09:00
PIK Group04 February 2008 PIK GROUP ("The Group" or "PIK") PIK GROUP acquires new development site next to the Azov Sea (LONDON, 4 February 2008) - PIK Group (LSE: PIK), one of Russia's leadingresidential real estate developers, today announced the acquisition of new landplot in the city of Azov. The total plot area is 2.6 hectares and PIK plans todevelop 55,000 sq. meters of housing on the site. The city of Azov, which has a population of approximately 80,000, is a satelliteof Rostov, located next to the Azov Sea. The coastline at Azov is one of themost popular and affordable recreation resorts in Russia for middle incomefamilies. Last month the federal government announced the establishment of a 20million square meter gaming zone in the area, one of four designated gamingzones in the Russian Federation. The area is also popular with families wishingto relocate from the harsher climate of northern Russia. - ENDS - Enquiries: PIK Group Tel: +7 495 505 97 33 ext 1358Viktor Szalkay szalkayv@pik.ruInvestor Relations Citigate Dewe Rogerson Tel: +44 20 7638 9571Tom BaldockLindsay Noton NOTES TO EDITORS PIK Group Overview Founded in 1994, PIK is one of the leading vertically integrated residentialdevelopers in Russia with over 14,000 employees across the country. Its businessactivities are concentrated in Moscow and the Moscow region with an increasingfootprint in many of Russia's other regions. Its principal activity is thedevelopment, construction and sale of residential properties in large scaledevelopments targeted primarily at the middle income housing market in Russia. PIK's core activities include: • development of residential real estate projects and sales of completed units, including servicing and maintenance of residential real estate developed by PIK and other developers; • production and assembly of concrete panel housing in Moscow as a subcontractor for the Moscow city government; and • production and sale of raw materials and construction materials. The last three years between 2004 and 2006, PIK has completed over 2.5 millionsquare meters of residential housing and over 36,000 residential units inRussia, including over 1.2 million square meters and over 17,000 residentialunits in 2006 alone. June 1, 2007, the Group completed successful listings on the London StockExchange, the RTS and MICEX exchanges in Russia. PIK Group's website address is: www.pik.ru Group Financial Summary Revenue for 2006 rose by 90% and equalled US$ 1,546 million, while EBITDA for2006 amounted to US$ 486 million. Net profit was US$ 298 million in 2006compared to US$ 20 million in 2005. According to CBRE, an independent appraiser, the combined market value of theGroup's properties valued as of January 1, 2007 was $8.8 billion. Some of the information in this press release may contain projections or otherforward-looking statements regarding future events or the future financialperformance of PIK. You can identify forward-looking statements by terms such as"expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may"or "might" the negative of such terms or other similar expressions. Thesestatements are only predictions and actual events or results may differmaterially. PIK does not intend to or undertake any obligation to update thesestatements to reflect events and circumstances occurring after the date hereofor to reflect the occurrence of unanticipated events. Many factors could causethe actual results to differ materially from those contained in PIK'sprojections or forward-looking statements, including, among others, generaleconomic conditions, PIK's competitive environment, risks associated withoperating in Russia, rapid technological and market change, and other factorsspecifically related to PIK and its operations. This information is provided by RNS The company news service from the London Stock Exchange