11 Sep 2008 07:00
THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY IN THE UNITED STATES OF AMERICA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")
VALUATION OF LAND ACQUIRED DURING 6 MONTHS ENDED JUNE 30 2008
(LONDON, September 11 2008) - PIK (LSE: PIK), a leading Russian residential real estate developer, today announces the results of a valuation of land acquired during the first half of 2008. The valuation was conducted by a third party independent appraiser, CB Richard Ellis, as of July 01 2008.
Key highlights
Total estimated net sellable area added into the property portfolio during the period amounted to 5,6 million square meters, valued at US$1.66 billion;
PIK's total land bank increased in H1 2008 by 39% to approximately 19,7 MM square meters of net sellable area as per management accounts (January 01 2008: 14.2 MM square meters net sellable area);
90% of the property portfolio acquisitions were made in Russia's regions;
The average value per square meter of newly acquired land was in line with the most recent CBRE valuation report as of 01 January 2008;
The Group's financial results for the 6 months ended June 30 2008 will be published during the week beginning 29 September 2008.
Kirill Pisarev, CEO of PIK commented:
"One of our main priorities for 2008 was to grow the land bank outside Moscow, in the process taking advantage of attractive land prices in the regions. We have had great success in the first half, acquiring large, high quality sites in regional cities with good growth potential."
Land property portfolio as of January 01 2008 | Additions for the 6 months ended 30 June 2008 | ||||
Total net sellable area, million square meters | 14,2 | 5,6 | |||
Value, US$ billion | $12.3 | $1.66 |
Land property portfolio as of January 01 2008 | Additions for the 6 months ended 30 June 2008 | Land property portfolio as of January 01 2008 | Additions for the 6 months ended 30 June 2008 | ||||||
Million square meters | US$ Billion | ||||||||
Moscow | 1,6 | 0.1 | $5.2 | $0.17 | |||||
Moscow Region | 5.2 | - | $4.9 | - | |||||
Russia's regions | 7.4 | 5.5 | $2.2 | $1.49 | |||||
14.2 | 5.6 | $12.3 | $1.66 |
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.