OREANDA-NEWS. October 9, 2009.  PIK (LSE: PIK), a leading Russian residential real estate developer, today announces the results of a revaluation of its properties, conducted by the independent appraiser CB Richard Ellis as at April 1 2009.

Key highlights

• Total net sellable space increased by approximately 4,7% to 14.89MM square meters (14.2MM as of January 1 2008) ), of which 98% is represented by residential area;

• 77% decrease in market portfolio value to USUSD2.86bn (January 1 2008: USD12.3bn) due to changes in the following assumptions:

- depreciation of the ruble over time (38% drop);
- increased development cycles for projects (by 2-4 years);
- flat selling prices and construction costs for 2009-2010 years;
- higher discount rates given higher project execution risks in the current
macroeconomics environment (3-7%);
- lower starting selling prices with deferred pattern of presales towards the end of the development projects;

• As a result of the above changes, market portfolio value per square meter totaled USD192 (January 1 2008: USUSD865).

• At the same time, share of properties in the course of development was at approximately 29% of the total area (January 1 2008: 40%).