PIK Group, the Russian residential proeprty developer listed in London, confirmed on Monday that it has acquired its first development site in St Petersburg. The 63-hectare site will be used to develop business class housing in what PIK has described as a flagship development in the Russian city. The total investment in the project will be $3bn (EUR 1.9bn).
PIK Group, the Russian residential proeprty developer listed in London, confirmed on Monday that it has acquired its first development site in St Petersburg. The 63-hectare site will be used to develop business class housing in what PIK has described as a flagship development in the Russian city. The total investment in the project will be $3bn (EUR 1.9bn).
The project is located on a 400-hectare site that has been reclaimed from the sea, of which approximately 200 hectares is sanctioned for real estate development, both office, retail and residential. PIK said it plans to develop 1,3 million m2 of housing on the site, including 1.1 million m2 of 'business-class' housing over the next 10 years.
PIK announced the intention to acquire the site last week, days before it said that an issuance of new shares was being postponed at the request of the companies controlled two of the group’s main shareholders, CEO Kirill Pisarev and Yuri Zhukov.
Since 2004, PIK has completed over 4 million m2 of residential housing - equivalent to 58,000 residential units - across Russia. PIK's portfolio comprised just over 14 million m2 of net sellable land at the start of 2008. CB Richard Ellis valued the land positions at $12.3bn (EUR 7.8bn).
