7 Jun 2010 09:35
THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY IN THE UNITED STATES OF AMERICA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")
RESULTS OF DEVELOPMENT PORTFOLIO VALUATION
(LONDON, 07 June 2010) - PIK Group (LSE: PIK), one of leading Russian residential real estate developers, today announces the results of a revaluation of its properties, conducted by the independent appraiser CB Richard Ellis as of January 01 2010.
Key highlights
·; Total net sellable area(1) decreased by approximately 22% to 11.59MM square meters (14.89MM as of April 1 2009), of which 96% is represented by residential area;
·; Total landbank decreased by 3.3MM sqm since last appraisal date due to contracted presales, divested non-core projects and partially abandoned projects;
·; 13% decrease in market portfolio value to US$2.48bn (April 1 2009: US$2.86bn) due to changes in the following assumptions:
- postponed launches of some perspective projects, especially in Russia's regions (by two and more years);
- conservative assumptions applied towards upward trend in selling prices and construction costs in subsequent periods (these are dependent upon underlying average oil price assumptions derived from forecasts of leading investment banks and agencies);
- remaining incumbencies on existing projects, where apartments have been already presold;
·; Market portfolio value per square meter increased to US$214 (April 1 2009: US$192).
·; Applied discount rate on projects remained flattish (20% on average for properties in the course of development vs. 21% YoY; 27% on average for properties held for future development vs. 26% YoY);
·; Operational horizon at around 5 years in Moscow and Moscow region remains appropriate and safe.
Note: (1) Net sellable area = unsold area
Portfolio of Properties Breakdown by Type as of January 01 2010
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| Net sellable area, PIK share ('000 sqm) | Unsold area ('000 sqm) | Value ($MM) |
| Completed and partially sold properties | 53 | 17 | 18 |
| Properties in course of development | 6,383 | 3,793 | 1,511 |
| Properties held for future development | 7,784 | 7,784 | 951 |
| Total | 14,220 | 11,594 | 2,480 |
| Source: CB Richard Ellis valuation report | |||
Portfolio of Properties Breakdown by Location as of January 1 2010
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| Number of properties | Net sellable area, PIK share ('000 sqm) | Unsold area ('000 sqm) | Value ($MM) |
| Moscow | 29 | 1,960 | 1,419 | 1,375 |
| Moscow Region | 24 | 5,675 | 4,235 | 788 |
| Russia's Regions | 55 | 6,585 | 5,940 | 317 |
| Total | 108 | 14,220 | 11,594 | 2,480 |
| Source: CB Richard Ellis valuation report | ||||
Top-10 Project Highlights by Value as of January 1 2010
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| April 1 2009 | January 1 2010 | ||
| Project Name | Location | Type | Unsold area ('000 sqm) | Value ($MM) | Unsold area ('000 sqm) | Value ($MM) |
| Mytnaya 13, (English Town) | Moscow | High-end Residential | 63 | 338 | 48 | 357 |
| Khimki, Novokurkino | Moscow Region | Mass Market Residential | 680 | 326 | 650 | 311 |
| Mytischi, Yaroslavsky District | Moscow Region | Mass Market Residential | 729 | 166 | 726 | 190 |
| Mantulinskaya 7 | Moscow | High-end Residential /Commercial | 260 | 172 | 252 | 184 |
| Kommunarka, Leninsky Region | Moscow Region | Mass Market Residential | 1,023 | 155 | 1,023 | 158 |
| Kuntsevo | Moscow | High-end Residential | 163 | 112 | 163 | 150 |
| Khimki, Sovkhoznaya str. (Levy Bereg) | Moscow Region | Mass Market Residential | 334 | 64 | 318 | 104 |
| Michurinsky pr-t., district 5-6 | Moscow | High-end Residential | 62 | 72 | 65 | 95 |
| Perovskaya str., 66 | Moscow | Mass Market Residential | 139 | 73 | 139 | 82 |
| Kutuzovsky prospekt, 14А (Park-City) | Moscow | High-end Residential, Commercial | 101 | 76 | 101 | 81 |
| Subtotal | 3,554 | 1,554 | 3,485 | 1,712 | ||
| As of total, % | 23.9% | 54.4% | 30.0% | 69.1% | ||
| Source: CB Richard Ellis valuation report |
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Enquiries:
| Investors |
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| PIK Group | Tel: +7 495 505 97 33 ext. 1358/1315 |
| Viktor Szalkay |
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| Media |
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| PIK Group | Tel: +7 495 505 97 33 ext. 1010/1028 |
| Dmitri Ivliev |
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| Citigate Dewe Rogerson | Tel: +44 20 7638 9571 |
| Tom Baldock |
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| Lindsay Noton |
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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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