PIK Buys $640M of Land in Rostov

PIK Group said Wednesday that it bought land in the Rostov region to build a 15 billion ruble ($640 million) residential and commercial complex as it expands outside Moscow.

The company said it planned to construct 600,000 square meters of "economy class" apartments on the 61 hectares it acquired in the region.

The project in Rostov, which includes 52,000 square meters of residential space, will take a decade to complete, PIK said.

Rostov, a city of 1 million, plans to integrate six nearby towns into a single conurbation. The lack of housing in the city is driving demand for residential construction, the company said.

PIK, controlled by billionaires Kirill Pisarev and Yury Zhukov, entered Rostov's development market in 2004, completing 100,000 square meters of residential space since then, the company said.