Published On: Tue, Dec 24th, 2013

Alexander Mamut Takes A share In The PIK Group, One Of Russia’s Leading Residential Real Estate Developers

Mamut has gone tandem with Sergei Gordeyev  who will  buy up the remaining 20% of  billionaire Suleiman Kerimov’s share in PIK.

Alexander Mamut - 1

Alexander Mamut / Getty

Alexander Mamut  has agreed to purchase approximately 16% in shares of  Russian real estate developers, the PIK Group , as part of a complicated transaction, in which Sergei Gordeyev will take up the remaining 20% of a 36% share package currently owned by Billionaire investor Suleiman Kerimov’s Nafta Moskva group.

According to media reports coming out of Russia, while in the past  Mamut and Gordeyev are partners in a number of companies, with  both of them holding equal eight percent shares in  the Otkritie Financial Corporation, this particular investment has been made by each of them separately and independently, and from their  own personal funds.

The total transaction is estimated to have been worth  around $208 million, based on PIK’s  current London Stock Exchange share value of $1.3 billion, with Mamut’s share costing him around $94.5 million.

The PIK Group share sale is expected to be completed in the coming days and is being observed as  part of a pattern adopted by Kerimov, who  has been gradually cashing in some of major assets during the course of 2013, most noticeably his share  in Uralkali, the world’s largest potash producer, snapped up by Mikhail Prokhorov for around $4 billion.

Founded in 1994,   the PIK Group  has grown to  become one of Russia’s leading real estate  developers, specializing in  large-scale residential projects in and around  Moscow as well as  regions within the country. The PIK Group specializes in the construction and marketing of residential properties, in the lower to medium price range.  Since its foundation, the  PIK Group has completed the  construction of  more than 13 million square meters of residential real estate,   including  more than 220, 000 apartments. The company is listed on both the Russian  and London Stock Exchanges.

During 2012 alone, the PIK Group succeeded in completing 1.3 million square meters of construction, including more than 20, 000 apartments.

For the first three quarters of  2013, the PIK Group  income from residential developments rose by  35% compared to the same period  last year.

The PIK Group are also one of Russia’s most active suppliers of materials for the construction industry through a number of subsidiaries, and have depots throughout Russia, not only in  Moscow but also  Rostov, Kirov, Kaluga, Tula, Nizhny Novgorod, Kaliningrad as well as in Cyprus.

Alexander Mamut, whose personal wealth is estimated as being in the region of  $2.3 billion, brings to PIK many years of experience in the urban planning sector. Mamut is also chairman of  MLPI, one of the leading companies  in Russian in  industrial and warehouse real estate marketing.

Mamut came to prominence in his role as advisor to the former Russian President  Boris Yeltsin.

While most of Mamut’s business affairs are based in Russia, he  first appeared on the international business second when he acquired social media website  LiveJournal  in 2007 through  SUP Fabrik, a media company in which he is a co-owner.

In 2011 another Mamut  owned company, A&NN Capital Fund Management acquired the UK  book chain Waterstones,  which  operates  close to 300 outlets  in the UK and  mainland Europe.

Alexander Mamut

 

Some of PIK Group Property portfolio

 

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