Our Strategy
Etalon Group’s Strategy aims to turn the Company into a leader in terms of operational efficiency in the Russian development market, reducing administrative expenses relative to the overall size of the business.
This will be achieved by comprehensive implementation of digital cost control solutions, improving the effectiveness of sales and by rapidly responding to changes in external conditions. Efficiency gains will also be achieved through a substantial simplification of the asset ownership structure.
Etalon Group intends to develop alternatives to its brick-monolithic construction techniques, including modern prefabricated construction methods, and construction from CLT (cross-laminated timber) panels, which can significantly reduce costs and/or construction time, while improving the quality of the final product.
At the same time, Etalon Group will continue with the brick-monolithic technology that it has used for housing construction up to this point. The Company will seek to achieve an optimal balance between a property’s selling price and construction costs.
In addition, Etalon Group plans to expand on its experience with BIM (building information modelling) technology by using it as the basis for creating a standard design system that will make the design process more efficient, while also speeding up the process of receiving permits and obtaining urban planning documentation.
Etalon Group intends to make up for its shortage of supply in St Petersburg during 2020–2021 and then to stabilise its residential portfolio both in the Moscow Metropolitan Area and in St Petersburg by replenishing its land bank annually in an amount equal to the volume of real estate sold during the year. This will enable the Company to consolidate its position among the top three Russian developers in terms of construction and sales volumes.
Etalon Group plans to actively develop additional services for the ever-growing number of people who live in properties that the Company has built over a period of more than 30 years.
This will enable it to achieve the highest NPS (net promoter score) score among Russian developers and, as a result, increase its share of repeat purchases, while also generating additional profit from complementary businesses.
Over 5.5
MLN SQM
Over 25
THS LOTS
300,000
RESIDENTS
ANNUAL GROWTH BY
AT LEAST 10%
Subject to the achievement of stable operational and financial growth on the strategic horizon, Etalon Group will consider the possibility of entering other Russian regions in cities with stable demand, high incomes and high real estate prices.
The Company continues to view partnerships with strong local players as its priority means of geographic expansion. However, with the sharp decrease in local players resulting from the inability to develop new projects under industry regulations that came into force on 1 July 2019, Etalon Group may consider the possibility of entering markets organically in order to consolidate the market and obtain the competitive advantages of a dominant player.
- SEGMENTS: comfort and business class
- PROJECT SIZE: infill development and integrated development projects of up to 300 ths sqm
- PROJECTS' IRR: more than 20%
- GROSS MARGIN: not less than 35%
- EXPANSION FORMAT: in conjunction with a local player or by opening an Etalon project office (without deploying the Company’s own general contracting and subcontracting functions)