Pik Group, one of Russia's leading residential real estate developers, has been included on the list of companies that can count on state support to survive the financial crisis. The list, which was drawn by the Russian Government on the instructions of Prime Minister Vladimir Putin includes companies from various industries which the government believes are vital to the Russian economy.
Pik Group, one of Russia's leading residential real estate developers, has been included on the list of companies that can count on state support to survive the financial crisis. The list, which was drawn by the Russian Government on the instructions of Prime Minister Vladimir Putin includes companies from various industries which the government believes are vital to the Russian economy.
London-listed Pik, which has seen the value of its shares drop by 96% over the past six months, said the government backing entitles the company to a raft of benefits. Pik will be able to count on loan financing under state guarantees, as well as interest rate subsidies, additional equity capitalisation, deferred tax payments, government contracts and tariff support. To qualify for state support, companies need to comply with several criteria, and to employ over 4,000 people.
Founded in 1994, Pik has presence in over 20 cities across Russia. Its business activities are concentrated in Moscow and the Moscow region and its principal activity is the development, construction and sale of residential properties in large scale developments. The company has completed over 4 million m2 of residential housing since 2004. According to CBRE, the combined market value of the group's properties valued in January 2008 was $12.3 bn.
