7 Jul 2010 09:46
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NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR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")
TRADING UPDATE
PIK SEES RISE IN MASS MARKET HOUSING NEW HOME SALES
(LONDON, July 07 2010) - PIK Group (LSE: PIK), one of Russia's leading residential real estate developers, is pleased to publish today a trading update of contracted new home retail presales for the six months ended June 30 2010 based upon management accounts.
Key figures
| Total contracted retail volume | 6M2010 |
| 6M2009 | Change, % |
| Value (in RUB MM) | 6,957 |
| 1,103 | 531% |
| size (in sqm) | 94,207 |
| 16,932 | 456% |
| size (in units) | 1,776 |
| 298 | 496% |
Note: unit is equivalent to aggregated amount of flats, ground floors and parking lots
Source: Management accounts
| Total contracted retail volume | 2Q2010 |
| 2Q2009 | Change,% |
| 1Q2010 |
| 1Q2009 | Change, % |
| Value (in RUB MM) | 4,029 |
| 503 | 700% |
| 2,928 |
| 600 | 388% |
| size (in sqm) | 54,412 |
| 7,886 | 590% |
| 39,795 |
| 9,046 | 340% |
| size (in units) | 948 |
| 114 | 730% |
| 828 |
| 184 | 350% |
Note: unit is equivalent to aggregated amount of flats, ground floors and parking lots
Source: Management accounts
Summary
·; Contracted new home retail presales volumes continued to show a positive recovery in 2Q2010 and showed over five-fold increase in 6M2010 compared to 6M2009, demonstrating a clear-cut recovery of demand in the mass market segment;
·; The recovery in demand is concentrated on PIK's core market (approx. 87% of total sales in unit terms in 6M2010), in the Moscow Metropolitan area;
·; Average sales to retail customers stood at RUB1,160MM per month (6M 2009: RUB184MM)
·; Average unit sales to retail customers were 15.1 apartments per day (6M 2009: 2.5 units);
·; Following our announcement dated June 2 2010 relating to the introduction of the mortgage program with Gazprombank on apartments' presales under construction, the share of mortgage-backed presales for June 2010 rose to approx. 9% of total flat sales in unit terms (June 2009: approx. 3%).
Current contracted new home presales volume levels remain approx. two times lower than the pre-credit crunch average driven by lower number of addresses for sale.
Looking ahead, we believe that the fundamentals for the continuing recovery of the market remain in place and we estimate consistent monthly run-rates of presales stable until the end of the year. At the same time, we remain conservative on prices, which we see flat going forward for the next 1-2 years.
Pavel Poselenov, CEO of PIK Group comments:
"We are pleased to see increasing demand from customers, which enables us to think about additional launches of projects in our core market. Banks are cooperating with us on providing mortgages for presales and their perceptions are changing."
Enquiries:
Investors
PIK Group Tel: +7 495 505 97 33 ext. 1315/1358
Viktor Szalkay
Head of Investor Relations
International media
Citigate Dewe Rogerson Tel: +44 20 7638 9571
Tom Baldock
Lindsay Noton
Russian media
Dmitry Ivliev Tel: +7 495 505 97 33 ext. 1010/1028