17th Mar 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THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY IN THE UNITED STATES OF AMERICA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 ("PIK" or "the Company")
2008 YEAR END UPDATE
(LONDON, 17 March 2009) - PIK (LSE: PIK), one of Russia's leading residential real estate developers, today publishes updated housing completion figures for the year ended 31 December 2008.
Headline numbers are provided in the table below:
|
(thousands of sq meters, rounded) |
2007 |
2008 |
Change |
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|
(unaudited) |
(unaudited) |
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|
Total housing completions |
1 542 (1) |
813 (2) |
-47.3% |
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|
Including: |
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|
Construction services provided to Moscow city |
196 |
192 |
-2% |
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|
Total housing completions by geography |
1 542 |
813 |
-47.3% |
|||
|
Including: |
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|
Moscow |
528 |
219 |
-58.5% |
|||
|
Moscow region |
643 |
495 |
-23.0% |
|||
|
Russia's regions |
371 |
99 |
-73.3% |
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|
Note: (1) equivalent to approx. 23,240 units; (2) equivalent to approx. 12,380 units |
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Summary:
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Fundamental change in operating environment following onset of the global financial crisis in September 2008 |
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Housing completions in the critical final quarter of the financial year severely restricted by withdrawal of access to debt finance |
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Regional diversification strategy put on hold |
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The Group's primary focus is now the restructuring of balance sheet debt to position the business for a more normalized economic environment |
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Management is engaged in ongoing dialogue with the majority of its banks regarding the rescheduling of its debt repayment |
Looking ahead, the economic outlook is uncertain and we believe that 2009 will be a difficult year for the Russian economy and for all Russian real estate developers. Longer-term the fundamental shortage of suitable residential housing in Russia remains a key driver of future growth for PIK Group. The new operating environment we face clearly has fundamental implications for PIK's future direction and we plan to communicate our revised strategy to the market with our year end results in May.
Enquiries:
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Investors |
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PIK Group |
Tel: +7 495 505 97 33 ext. 1358 |
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Viktor Szalkay |
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Media |
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PIK Group |
Tel: +7 495 505 97 33 |
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Natalia Konovalova |
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Citigate Dewe Rogerson |
Tel: +44 20 7638 9571 |
|
Tom Baldock |
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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.
-END-
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
Related Shares:
PIK.L