(LONDON, September 27 2010) - PIK Group (LSE: PIK), one of Russia’s leading residential real estate developers, is pleased to announce that it has reached an agreement with Sberbank of Russia for the expansion of its programme to make mortgages available to PIK customers for properties that are at the final stage of completion.

Under the new agreement, two mass market projects in Moscow and Moscow region have been added to the programme, which offers base contract terms to customers, including loan-to-value (‘LTV’) of up to 85%, a RUB interest rate at 10—13.5%, and maturity of up to 30 years.

The buildings where this programme is currently applicable are as follows:
• Residential project “Ak.Vinogradova” (located in Moscow), Building 7. Upon completion, it will comprise approximately 190 flats and will accommodate 480 people. Upon full completion, the residential project will consist of six buildings, comprising approximately 1,280 flats and accommodating 3,200 people. 
• Mass market project “Krasnaya Gorka” in the city of Lubercy (located in the Moscow region), mcr.8 building 1 and mcr.7 buildings 31, 32. Upon completion, they will comprise approximately 1,920 flats and will accommodate 4,800 people. Upon full completion, Krasnaya Gorka will consist of 35 buildings, holding approximately 11,000 flats and will accommodate 28,000 citizens.

Pavel Poselenov, CEO of PIK Group comments:

“We are pleased to expand a range of mortgage programmes for our customers with Russia’s leading banks. We see room for further improvements in mortgage accessibility as the economy recovers and commercial banks’ perceptions of property developers improve. Looking ahead we see the possibility of further increased cooperation with lenders.”