PIK Group, a leading Russian real estate developer focusing on large-scale residential projects within the Moscow Metropolitan Area and selected Russian regions, has signed an agreement with Morton Group to co-invest in a residential project in Drozhzhino, located in the Moscow region.

The residential scheme will consist of 200,000 square metres with a total investment of 12 billion rubles. PIK Group will provide production facilities to the investment, but will not allocate financial resources. The Group’s share in the first phase will be of 63,000 square metres, and in the second phase will be of 40,000 square metres, the Company plans to start construction in the fourth quarter of 2012.

The new district called Butovo Park II is located in Drozhzhino, Leninsky area, the south part of the Moscow region. The Leninsky area is an environmentally friendly part of the Moscow region and a fast growing district. Currently, there are 20 industrial enterprises, five research and scientific institutes, a number of agricultural enterprises, various cultural and social objects, which provide jobs and a comfortable living environment for the district’s residents.

The project is located on 22 hectare of land and will comprise of 15 residential buildings, including the modernized KOPE-M and P-3MK residential housing buildings. These are manufactured by DSK-2 and DSK-3 plants, which are integrated divisions of PIK Group. The renovated building series ensure more comfortable living and meet the latest safety regulations.

Butovo Park IIresidential district will include the secondary school, a kindergarten, parking spaces, a multifunctional centre, commercial and retail infrastructure. The district will have its own walking areas with green area.