PIK, Russia’s biggest housing developer, has reversed its decision to issue $500m (£250m) of new shares.

Yesterday, the developer led by Russian billionaires Kirill Pisarev and Yury Zhukov, said it would issue the shares in order to finance the development of two schemes, in the Russian cities of St Petersburg and Izhevsk.

But today, the company said it would not complete the share issue by way of an ‘accelerated bookbuild’.

A spokesperson told Property Week: ‘The issuance has been postponed indefinitely.

'They completed the book but the price offered was not accepted.’

PIK said it would now finance the sites through ‘alternative sources of funding.’