PIK.L Regulatory News (PIK)

31 Oct 2007 07:01

PIK Group31 October 2007 THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY IN THE UNITED STATES OF AMERICA PIK GROUP ACQUIRES COMMERCIAL PROJECT (LONDON, 31 October 2007) - PIK Group (LSE: PIK), one of Russia's leading realestate developers, today announced the acquisition of a new site in the Moscowregion for commercial development. The site, located to the north-west of Moscow, covers 4.6 hectares has a totalgross buildable area of 235,000 square metres. In a project named 'North WestTowers', it will be developed jointly with Storm Properties ("Storm") as thefirst class "A" office building in the Moscow region. It is the firstdevelopment undertaken by Storm since PIK acquired a controlling interest in thebusiness in September 2007. North West Towers will be situated on the Moscow riverbank, next to a well-knownluxury shopping mall and adjoining the planned office buildings of the Mayor'sGovernmental Office for the Moscow Region. The estimated total budget for the project, including land acquisition anddevelopment costs, is US$340 million. Commenting on today's announcement, Kirill Pisarev, CEO of PIK said: "In September we acquired a controlling interest in Storm Properties to develophigh quality commercial opportunities. We are delighted to have acquired thissite, which is in an excellent location, and with Storm's expertise we lookforward to developing it as the first class 'A' office development in the Moscowregion." - END - Enquiries: PIK Group Tel: +7 (495) 291-67-54Viktor SzalkayInvestor Relations Citigate Dewe Rogerson Tel: +44 20 7638 9571Tom BaldockLindsay Noton NOTES TO EDITORS PIK Group Overview Founded in 1994, PIK is one of the leading vertically integrated residentialdevelopers in Russia with over 14,000 employees across the country. Its businessactivities are concentrated in Moscow and the Moscow region with an increasingfootprint in many of Russia's other regions. Its principal activity is thedevelopment, construction and sale of residential properties in large scaledevelopments targeted primarily at the middle income housing market in Russia. PIK's core activities include: development of residential real estate projects and sales of completed units, including servicing and maintenance of residential real estate developed by PIK and other developers; production and assembly of concrete panel housing in Moscow as a subcontractor for the Moscow city government; and production and sale of raw materials and construction materials. The last three years between 2004 and 2006, PIK has completed over 2.5 millionsquare meters of residential housing and over 36,000 residential units inRussia, including over 1.2 million square meters and over 17,000 residentialunits in 2006 alone. Group Financial Summary Revenue for 2006 rose by 90% and equalled US$ 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. This information is provided by RNS The company news service from the London Stock Exchange