12 Sep 2008 09:29
This announcement replaces the previous announcement RNS number 2878D to indicate that the estimated completion date for the development project at site A101 is 2015 and not 2011, as stated previously.
THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY IN THE UNITED STATES OF AMERICA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 COMPLETES FINANCING OF 127 HECTARE SITE
IN MOSCOW REGION WITH BANK LOAN FROM SBERBANK
(LONDON, September 12 2008) - PIK (LSE: PIK), a leading Russian residential real estate developer, today announces that it has completed the financing of a 100% interest in Status Land, a company holding the rights to develop on 127 ha of land in Moscow Region.
PIK intends to develop mass market housing at the site, known as ''A101'', which is situated to the south of Moscow. As of January 01 2008, the net sellable space on the site was estimated at 1 055 000 sq. meters (PIK share: 1 023 350 sq. meters). The estimated completion date for the whole project is 2015.
Today's announcement follows the payment by PIK of a final instalment drawn from a credit facility raised from Sberbank. The total consideration paid for the project is $350MM, under the terms of the sale-purchase agreement entered into with the vendor in December 2007. Approximately US$230MM of the total consideration was financed by a Sberbank bank loan, nominated in Russian roubles with a maturity of 2011. The rest of the consideration was met from internal funds.
The property's value as of January 01 2008, in accordance with the independent valuation conducted by CB Richard Ellis, was US$745 million.
Kirill Pisarev, CEO of PIK commented:
"Our strong and leading position on the Russian residential market enables us to continue raising debt finance for our development projects. PIK has low gearing, with a net debt to EBITDA ratio for 2007 of below 1. We will continue to use debt to finance acquisitions going forward. "
Enquiries:
Investors | |
PIK Group | Tel: +7 495 505 97 33 ext. 1358 |
Viktor Szalkay | |
Media | |
PIK Group | Tel: +7 495 232 11 22 |
Natalia Konovalova | |
| |
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 January 1 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. In December 2007, Fitch Rating agency assigned a ''BB-'' credit rating to the Group. PIK Group's website address is: www.pik.ru
Group Financial Summary
Revenue for 2007 rose by 75% and equalled US$2.7 billion, while EBITDA for 2007 amounted to US$939 million. Net profit was US$700 million in 2007 compared to US$ 298 million in 2006.According to CBRE, an independent appraiser, the combined market value of the Group's properties valued as of January 01, 2008 was $12.3 billion.