PIK GROUP announces its intention to expand operations into the Republic of Kazakhstan

PIK (LSE: PIK), a leading Russian nationwide residential property developer, today announces its intention to expand operations into the Republic of Kazakhstan.

To facilitate this move, PIK has recently established a new business unit, PIK Kazakhstan, in Astana, in the centre of Republic. PIK Kazakhstan will be responsible for identifying land for purchase, zoning, and construction.

PIK’s move into Kazakhstan is in line with its strategy of opening up new geographic markets where the economic fundamentals will support future growth. Kazakhstan has a stable economy that has grown strongly in recent years, supported by the performance of the oil and gas and agriculture sectors. Looking ahead, the country is predicted to achieve continued economic growth, of 5.0% in the current year and 7.0% in 2009 (source: IMF).

Against this backdrop, there remains a shortage of quality housing to meet the needs of the increasingly affluent Kazakh population. PIK has been developing residential real estate since 1994 and sees an opportunity to utilize its experience in Russia and its vertically integrated business model to meet growing demand in this fast developing country.

Entry into Kazakhstan follows the announcement on 25 March 2007 of the establishment of PIK Ukraine and a representative office in Kiev. PIK has also been expanding its presence in Russia’s regions since 2006, entering cities such as Rostov-on-Don, Kaliningrad, Omsk, Perm, Novorossiysk, and Yaroslavl, Taganrog, Nizhny Novgorod, Kaluga and St. Petersburg.

Over the next few years, management intends to expand PIK’s reach further, through land purchases and by acting as a consolidator of Russia’s fragmented real estate development industry.

The Group will make further announcements regarding PIK Kazakhstan in due course.

source : PIK Group

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