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. Last Updated: 07/27/2016

PIK Acquires a 50% Stake in Storm Properties

Leading residential developer PIK Group has acquired a 50 percent plus one share stake in top-end real estate firm Storm Properties, the company said Monday.

The statement did not say how much PIK had paid for the stake.

According to the agreement, PIK will have an option to buy an additional 25 percent of the company, the company said in a statement. The option will come into effect in three years.

Storm Properties currently has a total of 450,000 square meters of Class A developments in the works in Moscow, including the Big City office towers, Geneva House, the Kaluzhsky business park and the Presnensky Val science and technical center.

"I believe that our companies will benefit from a favorable synergy. The combination of our companies' project pipeline, financial, and human resources will further justify our leading positions on the Russian real estate market," said Storm Properties chief executive Michael Belton.

Part of the acquisition price will be reinvested into future Storm Properties projects, with PIK looking to work on developments worth up to $500 million under the Storm Properties umbrella.

Founded in 1994, PIK has built up an $8.8 billion property portfolio focusing on residential property in Moscow. On June 1, PIK raised $1.8 billion in a Moscow and London IPO.