PIK Group, one of Russia's leading residential developers, has acquired 50% + 1 share in Storm Properties, a dynamically growing real estate company operating in the commercial class A sector. Under the framework of the transaction, PIK reserves the right to exercise an option to purchase an additional 25% of Storm Properties. This option becomes effective three years from now starting from the date of acquisition of Storm Properties and expires within two years.
Storm Properties possesses an attractive pipeline of projects with total area of 450 000 square meters in the premium class A segment.
The projects are:
- Big City Office Towers (160,000 m² in total);
- Geneva House (18,000 m² in total);
- Business park "Kaluzhsky" (230,000 m² in total);
- Science and technical center "Presnensky Val" (24,000 square meters in total).
Part of the acquisition price paid by PIK shall be reinvested by Storm Properties for future project development.
Furthermore, PIK plans to develop commercial real estate projects with estimated size of more than $500 million under Strom Properties' umbrella.
In the opinion of both companies this alliance opens wide opportunities for both parties. "This acquisition is driven by our strategy to seize the best opportunities in the commercial real estate sector. The acquisition of Storm Properties gives us the expertise of a team of dedicated professionals and provides us with significant pipeline of commercial projects," said Kirill Pisarev, CEO of PIK Group.
"I believe that our companies will benefit from a favorable synergy. The combination of our companies' project pipeline, financial, and human resources shall further justify our leading positions on the Russian real estate market," said Michael Belton, CEO of Storm Properties.
Source: Storm
