26th Aug 2008 09:08
THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY IN THE UNITED STATES OF AMERICA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 Group")
PIK CONTINUES EXPANSION INTO RUSSIA'S REGIONS WITH ACQUISITION OF MAJOR DEVELOPMENT SITE IN THE CITY OF KRASNODAR
(LONDON, 26 August 2008) - PIK Group (LSE: PIK), one of Russia's leading residential real estate developers, today announced its expansion into a further new city in Russia's regions with the acquisition of a major land plot in the city of Krasnodar.
The total area acquired is around 24 hectares on which PIK plans to develop approximately 250,000 sq. meters by the end of 2013, including mass market housing and commercial real estate. The project developer will be PIK-Kuban, a subsidiary of PIK Group with operations in Krasnodar Region.
PIK considers the Southern Federal district of Russia to be a strategically important area for development activity and the Group began operating in the Krasnodar Region in 2006. As of January 1 2008, PIK's total lank bank in Krasnodar Region stood at approx. 761,000 sq. meters. This figure comprises two current developments in Krasnodar, namely "Yuzhny Bereg" (PIK share: 752,000 sq. meters, estimated completion 2013) on the Black Coast and Cottage Village Myshako (PIK share: 9,000 sq, meters, completed in 2008) (both situated in the city of Novorossiysk). In 2007 PIK completed approx. 52,000 square meters of residential housing in the region.
PIK believes that Krasnodar Region, where the Winter Olympic Games are planned for 2014, will be a key development area in the coming years.
Enquiries:
|
Investors PIK Group Viktor Szalkay |
Tel: +7 495 505 97 33 ext. 1358 |
|
Media PIK Group Natalia Konovalova |
Tel: +7 495 232 11 22 |
|
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.
Related Shares:
PIK.L