12 May 2008 06:00
RNS Number : 1168U
PIK Group
11 May 2008
THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY IN THE UNITED STATES OF AMERICA PIK GROUP ("The Group" or "PIK") DEVELOPMENT PORTFOLIO VALUE INCREASES BY 40% (LONDON, 12 May 2007) - PIK (LSE: PIK), a leading Russian residential real estate developer, today announces the results of a revaluation of its properties, conducted by the independent appraiser CB Richard Ellis as at January 1 2008. Key highlights ·; Total net saleable space increased by approximately 61% to 14.2MM square meters (8.8MM as of January 1 2007), reflecting significant expansion into Russia's regions undertaken by PIK during 2007 ·; 40% increase in market portfolio value to US$12.3bn (January 1 2007: US$8.8bn) ·; 96% of the property portfolio represented by residential areas ·; Market portfolio value per square meter totaled US$865 (January 1 2007: US$1,000). This change has resulted from a strategic shift in the portfolio's structure towards Russia's regions during 2007 ·; 40% of the portfolio's total area consists of properties in the course of development (January 1 2007: 34%), reflecting continuing consumer demand and increased levels of regional development activity The Group's financial results for the 12 months ended 31 December 2007 will be released on May 19 2007. Kirill Pisarev, CEO of PIK comments: "We are very pleased to have delivered on one of our key IPO promises, namely to invest in building a strong land bank for the future. The independent CB Richard Ellis report shows how just how much progress we have made, with growth of 61% in net sellable space and a 40% increase in our portfolio's market value. Focusing mainly on expansion into Russia's regions, we have invested in a high quality development pipeline that we believe will deliver attractive returns for shareholders." Property portfolio: Breakdown by type as of January 1 2008 Number of Net Sellable Unsold Net Sellable Value Properties* Area, PIK Share Area (000' sqm) ($MM) (000' sqm) Completed and partially sold properties 6 68 8 46 Properties in course of development 449 6,491 5,626 8,472 Properties held for future development 345 8,586 8,586 3,787 Total 800 15,145 14,220 12,305 (*) including garages Source: CB Richard Ellis valuation report Property portfolio: Breakdown by location as of January 1 2008 Number of Net Sellable Unsold Net Sellable Value Properties* Area, PIK share Area (000' sqm) ($MM) (000' sqm) Moscow 113 1,847 1,608 5,172 Moscow Region 323 5,553 5,180 4,881 Russia's Regions 364 7,745 7,432 2,252 Total 800 15,145 14,220 12,305 (*) including garages Source: CB Richard Ellis valuation report Top-5 projects by value as of January 1 2008 January 1 2007 January 1 2008 Project Name Location Type Unsold Area Value Unsold Area Value (ths. sqm) ($MM) (ths sqm) ($MM) Khimki, Moscow Mass Market 905 1,283 742 1,196 Novokurkino Region Residential neighborhood Mytischi, Moscow Mass Market 1,141 1,327 881 998 Yaroslavsky Region Residential neighborhood Park city Moscow High-end 177 252 122 977 residential, Office Kommunarka, Moscow Mass Market n/a n/a 1,023 745 neighborhood Region Residential English town Moscow High-end 65 238 64 693 residential Subtotal 2,288 3,100 2,832 4,609 Source: CB Richard Ellis valuation report 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. -END- Enquiries: PIK Group Tel: +7 495 505 97 33 ext. 1358 Viktor Szalkay Head of Investor Relations Citigate Dewe Rogerson Tel: +44 20 7638 9571 Scott Fulton Tom Baldock Lindsay Noton NOTES TO EDITORS PIK Group Overview Founded in 1994, PIK is one of the leading vertically integrated residential developers operating on a nationwide scale. 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. 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 four years between 2004 and 2007, PIK has completed over 4 million square meters of housing (equivalent to over 59,000 units) in Russia, including over 1.5 million square meters (equivalent to 23,000 units) in 2007 alone. 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
PFUZKLFBVEBFBBE