PIK.L Regulatory News (PIK)

23 Dec 2008 09:17



THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY IN THE UNITED STATES OF AMERICA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 ("PIK" or "the Company")

UPDATE RE: MOSCOW CITY GOVERNMENT TENDERS

(LONDON, 23 December 2008) -PIK Group (LSE: PIK), one of Russia's leading residential real estate developers, today announces that following a tender process, it has won several contracts from Government of the Moscow City.

This tender replaces the one, announced by the Company on 20 October 2008 which was cancelled by the City of Moscow. Against a deteriorating economic backdrop, the final financial terms for the contracts were not finalized although originally awarded following an open tender process which provided for over US$1.0bn of municipal funds to the Company in 322,000 square meters of municipal housing. 

The City authorities have since invited market participants to tender for another round of contracts, several of which have been won by PIK Group.

These provide for approximately RR4.5 billion (equivalent to approximately US$160million) of municipal funds to be invested by the City of Moscow in 85,000 square meters of completed residential housing in the following parts of Moscow Region: Krasnaya Gorka in Lyubertsy (35,000 square meters), Yaroslavsky district in Mytischi (10,000 square meters), Dolgoprudny (5,250 square meters) and Novokurkino (34,750 square meters) 

The purchase price varies between RR53-54 thousand (approximately US$1875-1910) per square meter. The above buildings are either already completed or expected to be passed through state commission in 4Q2008 by PIK.

Enquiries:

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 January 1 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 01, 2008 was $12.3 billion.