13 Aug 2007 07:00
PIK Group13 August 2007 THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY IN THE UNITED STATES OF AMERICA PIK GROUP ("The Group" or "PIK") PIK ACQUIRES A DESIGN-ARHITECTURAL ORGANIZATION IN NOVORISSIYSK (LONDON, 13 August 2007) - PIK Group (LSE: PIK), one of Russia's leadingresidential developer, today announced that it acquired a majority state inNovorosgragdanproekt (The 'Company)'. The Company represents a leading design-architectural organization in Krasnodarregion. Among their latest recent projects were designing and master planningvarious development types (schools, kindergartens, offices and residentialbuildings), including those designed for PIK in the city of Novorossiysk, whichwere "Two Captain", "Victoria", "The Captain's Daughter" development. Thesedevelopments were completed by PIK during 2005-2006 with underlying total netsellable area of more than 50 000 square meters. The acquisition of this Company was made with the aim to use and further expandthe Company's design-architectural expertise. The financial consideration paid amounted to US$ 6 million. The rest of theshares are held by the local authorities. Novorossiysk is situated on the Black Sea Coast, in the southern part of Russiaand is a major port and transit corridor for the country. The City is situatedaround 150 km from Sochi, the Capital of the Olympics Games in 2014. Commenting on today's announcement, Kirill Pisarev, CEO of PIK said: "This acquisition further strengthens our position in Novorossiysk. We believethe City will continue to develop rapidly in the coming years, because of thecontinuing expansion of its role as a transit point for southern Russia andCentral Asia, as well the impact on the whole region of the Winter Olympics. Wewill review other acquisition possibilities in the region as they arise " - ENDS - Enquiries: PIK Group Tel: +7 (495) 291-67-54Viktor Szalkay szalkayv@pik.ruInvestor Relations Citigate Dewe Rogerson Tel: +44 20 7638 9571David WestoverTom Baldock 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