PIK.L Regulatory News (PIK)

21 Jan 2008 07:00

PIK Group21 January 2008 JOINT PRESS RELEASE PIK Group and GIC Real Estate to form a partnership to develop large residential urban neighborhood in the Moscow region (LONDON, 21 January 2008) - PIK Group (LSE: PIK), one of the largest real estatedevelopers in Russia, and an affiliate of GIC Real Estate, the propertyinvestment arm of the Government of Singapore Investment Corporation, haveentered into a partnership agreement to develop a large urban township in thecity of Mytischi, located in the Moscow Region to the north-east of the capital.Under the terms of the agreement, GIC Real Estate will acquire a 25% stake ofthe project for approximately US$233 million. The Mytischi township development project spans about 114 hectares and comprisesapproximately 1.14 million net sellable square meters (as of January 1 2007).The township will contain 50 high-rise apartment buildings, 13 low-risecommercial buildings, five elementary schools, seven kindergartens, two medicalpolyclinics and approx. 17,470 parking lots. When completed in 2013, thedevelopment will offer housing for approximately 50,000 residents. The Mytischi district is one of PIK's largest development sites. According to aCBRE appraisal conducted, the site has a market value of US$1.33 billion(pre-tax) as of January 1 2007. Commenting on today's announcement, Kirill Pisarev, CEO of PIK said, "We aredelighted to have such a strong international co-investor onboard for ourflagship project. It is a significant development for PIK and an appropriatemodel which could be replicated for other projects as we execute our regionalexpansion strategy." President of GIC Real Estate, Dr Seek Ngee Huat, said, "This investment providesGIC Real Estate with a strong entry into the Russian real estate market. Webelieve in the potential of the market and are excited to be partnering PIK, oneof the largest developers in Russia, for this major Mytischi project." 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. June 1, 2007, the Group completed successful listings on the London StockExchange, the RTS and MICEX exchanges in Russia. PIK Group's website address is: www.pik.ru About GIC Real Estate Pte Ltd (GIC Real Estate) GIC Real Estate is the real estate investment arm of the Government of SingaporeInvestment Corporation. GIC Real Estate manages a multi-billion dollar portfolioof direct and indirect property investments with over 200 investments in morethan 30 countries. It is one of the largest institutional investors in Asia andcurrently ranks amongst the world's top 10 global real estate investment firms. GIC Real Estate's website address is: www.gicre.com - ENDS - For further information please contact: PIK Group Viktor SzalkayHead of Investor RelationsTel: +7 (495) 505-97-33 / ext. 1358szalkayv@pik.ru Citigate Dewe Rogerson Tom BaldockTel: +44 20 7638 9571 GIC Real Estate Pte Ltd Ms Mah Lay ChoonVice President,Corporate CommunicationsAdministration and Corporate AffairsGIC Real Estate Pte Ltd168 Robinson Road #37-01Capital TowerSingapore 068912 Tel: (65) 6889 6841mahlaychoon@gic.com.sg This information is provided by RNS The company news service from the London Stock Exchange