Etalon Group Expands Presence in Premium Segment with Acquisition of JSC Biznes-Nedvizhimost
Financing the deal through a planned SPO will enable the Company to expand its portfolio without taking on additional debt
Etalon Group announces that it has acquired from Sistema PJSFC 100% of the shares in JSC Biznes-Nedvizhimost, which owns a portfolio of land plots and commercial real estate in Moscow and St Petersburg, for RUB 14,1 billion (the “Transaction”). To finance the acquisition, IPJSC Etalon Group, the Group’s public holding company (the “Company”), plans to conduct an additional offering of ordinary shares via an open subscription (the “SPO”).
The Transaction will create growth opportunities – in terms of both the business and shareholder value – by increasing the share of premium projects in Etalon Group’s land bank and considerably diversifying its portfolio. The acquisition will enable the Group to become one of the largest Russian developers of premium residential real estate, while also strengthening its position in the commercial real estate segment.
The portfolio of JSC Biznes-Nedvizhimost includes 42 sites in attractive locations in Moscow and St Petersburg that will be used for the construction of premium- and business-class residential and commercial real estate projects. Etalon Group plans to develop low-rise residential and commercial projects under its AURIX premium brand on waterfront recreational land in Moscow’s Serebryany Bor.
The 18 projects that the Company plans to prioritise have a development potential of over 200 ths sqm, with expected revenue from their delivery to 2032 of more than RUB 185 billion. The urban development potential of other projects is currently being determined and, according to preliminary assessments, could be a significant source of profit for the Group.
The development of the commercial real estate projects included in the portfolio of JSC Biznes-Nedvizhimost will enable the Group to further diversify its land bank in terms of both price segments and property types. The projects also offer an additional benefit: an opportunity to use incentives received for creating jobs to reduce the fees for changing the permitted use of other land plots acquired for future residential development.
The Group intends to finance the Transaction with proceeds from the Company’s planned SPO on the Moscow Exchange. This mechanism will enable the Group to expand its land bank without taking on additional high-interest debt. The Group expects the integration of JSC Biznes-Nedvizhimost and the SPO to take place before the end of 2025.
Preliminary parameters and structure of the SPO
· The SPO is expected to involve the placement of shares via open subscription. The question of increasing the authorised capital of IPJSC Etalon Group has been submitted for consideration at an Extraordinary General Meeting of Shareholders to be held on 29 September 2025.
· All proceeds from the SPO will go to the Company (100% cash-in).
· The exact volume of the SPO has not yet been determined. It will be based on several criteria, including the purchase price of JSC Biznes-Nedvizhimost and external demand.
· The SPO will be open to a broad range of investors, and the Company expects its shares to be included in the Moscow Exchange’s Level 2 listing.
· Shareholders of IPJSC Etalon Group will have pre-emptive rights to acquire shares during the SPO.
· The SPO price will be determined following the book-building process.
· The Group expects the SPO to take place before the end of 2025.
In July 2025, the Company completed the redomiciliation and automatic conversion of Etalon Group PLC global depositary receipts (GDRs) into ordinary shares of IPJSC Etalon Group. The Company has submitted an application for its shares to be included in the Moscow Exchange’s Level 2 listing and expects trading to begin in early September 2025.
Etalon Group President Mikhail Buzulutsky said:
“The acquisition of Biznes-Nedvizhimost is a new catalyst for growth and the qualitative transformation of our business. In an environment marked by a lack of high-potential development sites in major cities, we are getting an opportunity to quickly expand our land bank with assets offering development potential of more than 200 ths sqm, while increasing the portfolio of our AURIX premium brand significantly with the addition first-class sites in Moscow and St Petersburg.
“The acquired portfolio is fully aligned with our strategy of diversifying our business and increasing the share of premium projects. We are one of the few developers with the expertise to realise the potential of Biznes-Nedvizhimost’s assets. We have gained considerable M&A experience in recent years. From 2019 to 2022, we acquired the portfolios of Leader-Invest, a developer with premium in-fill projects in Moscow, as well as the Russian operations of YIT, increasing our land bank by 2.5 mln sqm . We expect the integration of this new asset to take place just as quickly and not to require additional costs.
“Increasing the share of premium projects in our portfolio, alongside diversification through office real estate, will drive further business growth and enhance our resilience. While the share of premium projects in our offering is still relatively low, this segment has already demonstrated sales growth of 50% and has enabled us to scale up our business. In addition, the construction of commercial real estate enables us to benefit from incentives for creating jobs and, in particular, to reduce fees for changing the permitted use of land plots acquired for future residential development.
“We plan to finance the transaction with proceeds from the placement of additional shares of IPJSC Etalon Group once the General Meeting of Shareholders provides the necessary approval. This step will enable us to expand our portfolio without increasing our debt position at a time when interest rates remain high.
“We believe that the open subscription for new shares will give a wide range of our shareholders an opportunity to invest in the development of new assets. In particular, our largest shareholder, PJSC Sistema, is considering taking part in the SPO, subject to obtaining the necessary approvals.”
Etalon Group will hold an Investor Day on 28 August 2025, during which the Company’s management will present its financial results for the first half of the year and share its growth strategy in connection with the acquisition of JSC Biznes-Nedvizhimost. A video presentation is available here.
This and other recent announcements are available on the Etalon Group website:
https://www.etalongroup.com/en/news/.
IR Team
About Etalon Group
Founded in 1987, today Etalon Group is one of the leading nationwide players in Russia’s development and housing construction sector. The Company develops real estate projects for the middle class in Moscow, the Moscow region and St Petersburg. The Company has been actively developing in eight regions across Russia since 2021, with large-scale projects under way in Omsk, the Novosibirsk region, Ekaterinburg, Tyumen and Kazan. With 37 years of successful operations and ongoing regional expansion, the Company remains one of the largest players in the Russian real estate market. Since its foundation, Etalon Group has delivered 9.2 mln sqm of real estate.
Thanks to its integrated business model, Etalon Group creates added value for customers and shareholders at every stage of development, from land plot analysis and acquisition to the operation and maintenance of existing properties. Etalon Group employs more than 6,000 people.
Etalon Group’s total assets comprise 27 projects under development, unsold inventory at completed residential complexes and commercial properties, with total unsold NSA of 5.5 million sqm, as well as a construction and maintenance division. According to Nikoliers, the value of Etalon Group assets as of 31 December 2024 was RUB 305 billion.
In 2024, Etalon Group’s new contract sales totalled 699 ths sqm, or RUB 146.2 billion.
The Company’s revenue in 2024 amounted to RUB 131 billion, with EBITDA of RUB 27.6 billion.
Etalon Group shares are traded on the Moscow Exchange (ticker ETLN) and have been included in the Level 2 quotation list since September 2025.