4 Aug 2008 07:00
Joint Press Release |
PIK GROUP AND STRABAG LAUNCH A JOINT VENTURE TO EXECUTE HIGH-END DEVELOPMENT PROJECTS IN MOSCOW PRIME LOCATIONS AND ALSO IN THE MOSCOW REGION
(LONDON, 4 August 2008) - PIK Group (LSE: PIK), one of Russia's leading residential real estate developers, and Strabag, an Austrian construction company with a solid presence in Russia, today announce the launch of a joint venture, named ILBAU.
ILBAU will serve as a general contractor and will provide significant execution capacity for PIK's business class and high-end individual concrete residential development projects in Moscow prime locations. Such projects include:
The redevelopment project of the Kuntsevo district in the western part of Moscow next to Rublevskoe highway (PIK share: approx. 170,000 square meters of net sellable space scheduled for completion by 2014) Business class residential project on Marshal Zakharova street (PIK share: approx 30,000 square meters of net sellable space scheduled for completion by 2012 Business class residential project on Marina Roscha street (PIK share: approx 32,000 square meters of net sellable space scheduled for completion by 2011)On a selective basis, ILBAU will also be a general constructor for a number of individual poured concrete buildings in the Moscow region. Such buildings are:
PIK and Strabag have already been cooperating on a number of projects, such as the English Town business class residential project located within the third ring road in the central part of Moscow (PIK share: approx. 70,000 square meters of net sellable space scheduled for completion by the end of 2011) and also Rublevskie Ogni business class residential project (PIK share: approx. 32,000 square meters of net sellable space scheduled for completion by Q4 2011).
PIK Group and Strabag have equal equity stakes in ILBAU. The two companies plan to potentially extend the relationship to cover additional residential projects in the foreseeable future.
Enquiries:
Investor Relations PIK Group Viktor Szalkay | Tel: +7 495 505 97 33 ext. 1358 |
Public Relations PIK Group Natalia Konovalova | Tel: +7 495 232 11 22 |
STRABAG S Dr. Christian Ebner | Tel: +43 (0) 1/22 4 22 11 700 |
Citigate Dewe Rogerson Tom Baldock Lindsay Noton | Tel: +44 20 7638 9571 |
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
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 1, 2008 was $12.3 billion.
Strabag Overview
Strabag is one of Europe's leading construction groups. With about 63,000 employees, Strabag expects to generate a construction output volume of € 12.4 billion in the 2008 financial year.
From its core markets of Austria and Germany, Strabag is present via its numerous subsidiaries in all countries of Eastern and South-East Europe, in selected markets in Western Europe and on the Arabian Peninsula.
Strabag's activities span the entire construction industry (Building Construction and Civil Engineering, Transportation Infrastructures, Tunnelling) and cover the entire value-added chain in the field of construction.
Strabag's website address is: www.strabag.com