The PIK Group of Companies expects to become one of the largest builders of city orders in Moscow.

PIK plans to increase the volume of construction under city orders in Moscow to 80,000 square meters in 2012, the group's vice president Konstantin Kuznetsov said at a board meeting of the capital's construction complex. In 2011, PIK, according to him, built 18,000 square meters under city orders in Moscow - "a fairly small volume."

The profitability of working on a city order is somewhat lower than that of our own investment projects, but a city order has guaranteed terms and payment volumes, and also helps to load production capacities, explains Kuznetsov (he conveyed his comments through a representative).

According to the Moscow Department of Construction, 529,600 square meters of housing should be built under the city order in 2012, 866,000 square meters in 2013, and 781,000 square meters in 2014. Based on these figures, PIK plans to build about 15% of the total volume of city orders in Moscow in 2012. PIK is one of the leaders in the Russian market in terms of total construction capacity, recalls VTB Capital analyst Maria Kolbina. In January, the company won the bidding for the right to build housing in Moscow, which gives hope that the company has established relationships with the new city administration. At the auction held in January by the state enterprise Moscow Center for Children's, Family Recreation and Health (which should become the sole customer for the construction of social housing and kindergartens for Moscow), the PIK-MFS-PIK structure won the right to build 30,400 square meters of housing. In addition to the PIK structure, six more companies won the auction. Usually, 15-20 players participate in the auction, and about 10 win, says Vitaly Korolev, a representative of Glavstroy. If PIK manages to get 15% of the order, it will be a major player in this market, but not a monopolist, he continues. Each of the largest market participants, SU-155, DSK-1 and Glavstroy, builds approximately 15% of the city's order, Korolev summarizes.

PIK is counting on the city