(LONDON, 02 July 2008) - PIK Group (LSE: PIK), one of Russia’s leading residential real estate developers, today announced the acquisition of a major land plot in the Rostov Region.
The site is located in Rostov sea district, at an important industrial and trade centre along the Moscow to Rostov-on-Don highway, approximately 15-20 minutes from the center of Rostov-on-Don.
The total area acquired is 61 hectares, on which PIK plans to develop approximately 600,000 sq. meters of housing, 52,000 sq. meters of commercial real estate and the social infrastructure needed to support it. PIK anticipates an investment of approximately US$650 million in this project which will be completed by 2018.
PIK considers the Southern Federal district to be a strategically important area for development activity. The Group began operating in the Rostov area in 2004, since when it has completed over 100,000 sq. meters of residential housing. In total, as of January 1 2008 (the date of the last CB Richard Ellis evaluation report), PIK owned approximately 760,000 square meters for development in the Rostov Region. This figure comprises PIK’s two current developments in the area, namely the “Sokol” and “Vishneviy Sad” projects. In addition, at the beginning of 2008 PIK acquired 2.6 hectares in the nearby city of Azov.