9 Oct 2009 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THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY IN THE UNITED STATES OF AMERICA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")
RESULTS OF DEVELOPMENT PORTFOLIO VALUATION
(LONDON, 09 October 2009) - 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 April 1 2009.
Key highlights
Total net sellable space increased by approximately 4,7% to 14.89MM square meters (14.2MM as of January 1 2008) ), of which 98% is represented by residential area;
77% decrease in market portfolio value to US$2.86bn (January 1 2008: US$12.3bn) due to changes in the following assumptions:
- depreciation of the ruble over time (38% drop);
- increased development cycles for projects (by 2-4 years);
- flat selling prices and construction costs for 2009-2010 years;
- higher discount rates given higher project execution risks in the current macroeconomics environment (3-7%);
- lower starting selling prices with deferred pattern of presales towards the end of the development projects;
As a result of the above changes, market portfolio value per square meter totaled US$192 (January 1 2008: US$865).
At the same time, share of properties in the course of development was at approximately 29% of the total area (January 1 2008: 40%).
Portfolio of Properties Breakdown by Type as of April 1 2009
| Net Sellable Area, PIK Share (000' sqm) | Unsold Net Sellable Area (000' sqm) | Value ($MM) | |
| Completed and partially sold properties | 71 | 12 | 33 |
| Properties in course of development | 6 237 | 4 316 | 1 709 |
| Properties held for future development | 10 629 | 10 566 | 1 113 |
| Total | 16 937 | 14 894 | 2 855 |
| Source: CB Richard Ellis valuation report | |||
Portfolio of Properties Breakdown by Location as of April 1 2009
| Number of Properties | Net Sellable Area, PIK share (000' sqm) | Unsold Net Sellable Area (000' sqm) | Value ($MM) | |
| Moscow | 31 | 1 760 | 1 515 | 1 343 |
| Moscow Region | 23 | 5 752 | 4 569 | 1 021 |
| Russia's Regions | 57 | 9 425 | 8 810 | 491 |
| Total | 111 | 16 937 | 14 894 | 2 855 |
| Source: CB Richard Ellis valuation report | ||||
Top-5 Project Highlights by Value as of April 1 2009
| January 1 2007 | January 1 2008 | April 1 2009 | ||||||
| Project Name | Location | Type | Unsold Area (ths. sqm) | Value ($MM) | Unsold Area (ths sqm) | Value ($MM) | Unsold Area (ths. sqm) | Value ($MM) |
| English town neighbourhood | Moscow | High-end residential | 65 | 238 | 63 | 693 | 63 | 338 |
| Khimki, Novokurkino | Moscow Region | Mass Market Residential | 905 | 1 283 | 742 | 1 196 | 680 | 326 |
| Park city | Moscow | High-end residential, Office | 177 | 252 | 122 | 977 | 101 | 75 |
| Mytischi, Yaroslavsky | Moscow Region | Mass Market Residential | 1 141 | 1 327 | 881 | 998 | 729 | 166 |
| Kommunarka | Moscow Region | Mass Market Residential | n/a | n/a | 1 023 | 745 | 1 023 | 155 |
| Subtotal | 2 288 | 3 100 | 2 832 | 4 609 | 2 755 | 1 157 | ||
| Source: CB Richard Ellis valuation report | ||||||||
Enquiries:
| Investors | |
| PIK Group | Tel: +7 495 505 97 33 ext. 1358 |
| Viktor Szalkay | |
| Media | |
| PIK Group | Tel: +7 495 505 97 33 |
| Dmitri Ivliev | |
|
| |
| 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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