Joint press release, PIK Group and GIC Real Estate to form a partnership to develop large residential urban neighborhood in the Moscow region

21 Jan 2008

London

“PIK Group (LSE: PIK), one of the largest real estate developers in Russia, and an affiliate of GIC Real Estate, the property investment arm of the Government of Singapore Investment Corporation, have entered into a partnership agreement to develop a large urban township in the city of Mytischi, located in the Moscow Region to the north-east of the capital. Under the terms of the agreement, GIC Real Estate will acquire a 25% stake of the project for approximately US$233 million.

The Mytischi district is one of PIK’s largest development sites. According to a CBRE appraisal conducted, the site has a market value of US$1.33 billion (pre-tax) as of January 1 2007.

Commenting on today’s announcement, Kirill Pisarev, CEO of PIK said, “We are delighted to have such a strong international co-investor onboard for our flagship project. It is a significant development for PIK and an appropriate model which could be replicated for other projects as we execute our regional expansion strategy.”

President of GIC Real Estate, Dr Seek Ngee Huat, said, “This investment provides GIC Real Estate with a strong entry into the Russian real estate market. We believe in the potential of the market and are excited to be partnering PIK, one of the largest developers in Russia,for this major Mytischi project.” PIK Group Overview Founded in 1994, PIK is one of the leading vertically integrated residential developers in Russia with over 14,000 employees across the country. Its business activities are concentrated in Moscow and the Moscow region with an increasing footprint in many of Russia’s other regions. Its principal activity is the development, construction and sale of residential properties in large scale developments targeted primarily at the middle income housing market in Russia.

PIK’s core activities include:

development of residential real estate projects and sales of completed units, including servicing and maintenance of residential real estate developed by PIK and other developers;
production and assembly of concrete panel housing in Moscow as a subcontractor for the Moscow city government; and
production and sale of raw materials and construction materials.
The last three years between 2004 and 2006, PIK has completed over 2.5 million square meters of residential housing and over 36,000 residential units in Russia, including over 1.2 million square meters and over 17,000 residential units in 2006 alone.

June 1, 2007, the Group completed successful listings on the London Stock Exchange, the RTS and MICEX exchanges in Russia.

PIK Group’s website address is: www.pik.ru

About GIC Real Estate Pte Ltd (GIC Real Estate)

GIC Real Estate is the real estate investment arm of the Government of Singapore Investment Corporation. GIC Real Estate manages a multi-billion dollar portfolio of direct and indirect property investments with over 200 investments in more than 30 countries. It is one of the largest institutional investors in Asia and currently ranks amongst the world’s top 10 global real estate investment firms.

GIC Real Estate’s website address is: www.gicre.com