4 Jun 2008 09:04
THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY IN THE UNITED STATES OF AMERICA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 ("PIK" or "the Company")
PIK GROUP EXPECTS TO ACQUIRE
FIRST DEVELOPMENT SITE IN ST. PETERSBURG
(LONDON, 04 June 2008) - PIK Group (LSE: PIK), one of Russia's leading residential real estate developers, today announced that it is in advanced discussions regarding the acquisition of a major land plot in the historic heart of the city of St. Petersburg.
Situated approximately 630km north of Moscow on the Neva River, St. Petersburg has a population of approximately 4,695,000 (source: 2000 census) and is Russia's second largest urban centre after the capital.
While PIK will continue to focus on the mass market, the Group sees interesting opportunities in Moscow and St. Petersburg for selected developments in higher-end segments of the residential real estate market. PIK is already developing two high-end business class residential complexes in Moscow - the "English Town" and Park City".
The Group intends to develop a flagship project in St. Petersburg aimed at a similar segment of the market. Located in an exclusive area, it will be developed over the next ten years and when completed will offer approximately 1.3 million square meters of housing.
As of January 1 2008, the Group's property portfolio amounted to 14.2 million square meters of unsold net sellable space, which was valued at US$12.3 billion by CB Richard Ellis, the independent appraiser. Since that date, the total land bank of the company is already up by approximately 16% accounting for the above land acquisition.
Commenting on today's announcement, Kirill Pisarev, CEO of PIK said:
"St. Petersburg has the right profile for PIK - it is at the heart of a region attracting high levels of investment and has the right socioeconomic trends. The city has a strong intellectual and scientific heritage and there is demand from its growing middle classes for better housing. Our intention is to address this need in the first instance through this flagship development and, looking further ahead, by acquiring further new sites and expanding our activities in the region."
Enquiries:
PIK Group Tel: +7 495 505 97 33 ext. 1358
Viktor Szalkay
Investor Relations
Dmitry Ivliev Tel: +7 495 232 11 22
Natalia Konovalova
Public Relations
Citigate Dewe Rogerson Tel: +44 20 7638 9571
Tom Baldock
Lindsay Noton
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance 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. These statements are only predictions and actual events or results may differ materially. PIK does not intend to or undertake any obligation to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in PIK's projections or forward-looking statements, including, among others, general economic conditions, PIK's competitive environment, risks associated with operating in Russia, rapid technological and market change, and other factors specifically related to PIK and its operations.
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NOTES TO EDITORS
PIK Group Overview
Founded in 1994, PIK is one of the leading vertically integrated residential developers with presence in over 20 cities across Russia. Its business activities are concentrated in Moscow and the Moscow region with an increasing footprint in many of Russia's other regions. Its principal activity is the development, construction and sale of residential properties in large scale developments targeted primarily at the middle income housing market in Russia.
Since 2004, PIK has completed over 4 million square meters of residential housing, which is equivalent to approximately 58,000 residential units across Russia.
June 1, 2007, the Group completed successful listings on the London Stock Exchange, the RTS and MICEX exchanges in Russia.
PIK Group's website address is: www.pik.ru
Group Financial Summary
2007 revenue equalled to US$2.7 billion, while 2007 EBITDA reached US$939 million. Net profit for the year amounted to US$700 million.
According to CBRE, an independent appraiser, the combined market value of the Group's properties valued as of January 1, 2008 was $12.3 billion.