Pik Group arranges $262m in short-term debt

Pik Group, the Moscow-based developer of residential property in Russia, has tapped the liquidity fund set up to help Russian businesses for a $262 mln (EUR 174.5 mln) short-term loan.

The refinancing was agreed with state-owned Russian bank VEB and has a maturity of one year. Pik said the facility was secured within the framework of government support to help major Russian companies get through the liquidity crisis.

CEO Kirill Pisarev commented: 'Residential housing is a strategically important sector of the economy and we are pleased that the government is providing funding to key industry players like Pik during this unprecedented financial crisis.'

Pik has completed over 4 million m² of residential housing, equivalent to 58,000 residential units, across Russia since the company was established in 2004. The company is listed on London Stock Exchange and the Russian RTS and MICEX exchanges in June 2007.

According to CBRE, the combined market value of the group's properties in January 2008 was $12.3 bn.