OREANDA-NEWS. September 12, 2008. (LONDON, September 12 2008) - PIK (LSE: PIK), a leading Russian residential real estate developer, today announces that it has completed the financing of a 100% interest in Status Land, a company holding the rights to develop on 127 ha of land in Moscow Region.

PIK intends to develop mass market housing at the site, known as ‘‘A101’’, which is situated to the south of Moscow. As of January 01 2008, the net sellable space on the site was estimated at 1 055 000 sq. meters (PIK share: 1 023 350 sq. meters). The estimated completion date for the whole project is 2015.

Today’s announcement follows the payment by PIK of a final instalment drawn from a credit facility raised from Sberbank. The total consideration paid for the project is USD 350MM, under the terms of the sale-purchase agreement entered into with the vendor in December 2007. Approximately USD 230MM of the total consideration was financed by a Sberbank bank loan, nominated in Russian roubles with a maturity of 2011. The rest of the consideration was met from internal funds.

The property’s value as of January 01 2008, in accordance with the independent valuation conducted by CB Richard Ellis, was USD 745 million.

Kirill Pisarev, CEO of PIK commented:

“Our strong and leading position on the Russian residential market enables us to continue raising debt finance for our development projects. PIK has low gearing, with a net debt to EBITDA ratio for 2007 of below 1. We will continue to use debt to finance acquisitions going forward. “