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