OREANDA-NEWS. October 27, 2011. PIK Group (LSE: PIK), one of Russia’s leading residential real estate developers, is pleased to publish a trading update for 9 months ended September 30, 2011 based upon management accounts.

Key highlights:

In 9M11 cash collections from sale of apartments surged 55% to RUB 22.4 billion (9M10: RUB 14.4 billion) driven by higher volume and residential selling prices in the corresponding period;

Total gross cash collections for 9M11 showed continuing growth of the Group’s operations and increased by 32% reaching RUB 35.1 billion (9M10: RUB 26.6 billion);

9M11 new sales contracts to customers showed 29.9% growth up to 343 thousand sq meters compared to the same period of 2010 upon continuing market growth & diversification of product offering.

In 2011 year-to-date PIK continued aggressively launching new projects as the market continued to grow. In total 31 new projects were put on sale, of which 21 projects came from Moscow Metropolitan area. The rest was attributed by Russian regions.

3Q11 sales funded by mortgages continued growing, reaching 29.5% as a result of PIK's initiative to introduce various mortgage partnership programs;

Cash collections from construction services declined by 7.7% to RUB 8.9 billion (9M10: RUB 9.7 billion);

FY2011 guidance on new sales contracts to customers of 520 000 square meters is reiterated together with total gross cash collections of RUB 50-55 billion (RUB 40-45 billion of which account for sales of apartments)