PIK Group to acquire first development site in St Petersburg

London-listed PIK Group said on Wednesday that it is in advanced discussions over the acquisition of a major land plot in the historic heart of the city of St.Petersburg. The group intends to develop a flagship project in St. Petersburg aimed at the luxury segment of the market. Located in an exclusive area, the site will be developed over the next ten years and when completed will offer some 1.3 mln m² of housing.

While PIK will continue to focus on the mass market, the company statement said it now sees ‘interesting opportunities in higher-end segments of the residential real estate market in Moscow and St. Petersburg. PIK is currently developing two high-end business class residential complexes in Moscow - the English Town and Park City.

Kirill Pisarev, CEO of PIK commented: 'St. Petersburg has the right profile for PIK - it is at the heart of a region attracting high levels of investment and has the right socioeconomic trends. The city has a strong intellectual and scientific heritage and there is demand from its growing middle classes for better housing. Our intention is to address this need in the first instance through this flagship development and, looking further ahead, by acquiring further new sites and expanding our activities in the region.'

As of 1 January 2008, the group's property portfolio amounted to 14.2 mln m² of unsold net sellable space, valued at $12.3 bn (EUR 8 bn) by CB Richard Ellis, the independent appraiser. Since that date, the total land bank of the company is already up by approximately 16% accounting for the above land acquisition.