Etalon Group Apartments Eligible for State Subsidised Mortgage Programme

17 March 2015

 

Etalon Group Limited (“Etalon Group” or the “Company”), one of Russia’s largest and longest-established development and construction companies, announces that apartments at its development projects in the Moscow and St. Petersburg Metropolitan Areas may now be purchased under the Russian Federation’s subsidised mortgage programme.

Etalon Group cooperates with leading Russian banks on mortgage programmes for its residential developments.  Sberbank, VTB24, Bank St. Petersburg and Khantiy-Mansiyskiy Bank Otkritie are already offering subsidised mortgages to Etalon Group customers. 

Under the terms of the subsidised mortgage programme, banks may provide up to 30-year mortgages for amounts not exceeding RUB 8 million (for flats in St. Petersburg and Moscow Metropolitan Areas) at rates as low as 12%, with minimum down payments of 20%.

On 13 March 2015, the Russian Government launched a programme to provide subsidised mortgages, using up to RUB 20 billion of budget funds.  The programme aims to provide at least RUB 400 billion in subsidised mortgages in 2015.  The programme is currently due to run until 1 March 2016.

This and other recent announcements are available on the Etalon Group website: www.etalongroup.com/investors/news/

Etalon Group IR Team 

T: +44 20 8123 1328 <br/>E: info@etalongroup.com 

EM

Sam VanDerlip <br/>T: +44 7554 993 032<br/>T: +7 499 918 3134<br/>E: vanderlip@em-comms.com

 

About Etalon Group

Founded in 1987 by Viacheslav Zarenkov, Etalon Group has become one of Russia's largest development and construction corporations.  The Company focuses on middle class residential real estate in the Moscow and St. Petersburg metropolitan areas, where it operates through Etalon Invest and LenSpetsSMU subsidiaries. With a 27-year history, Etalon Group has one of the longest and most successful track records in the Russian real estate industry.

Since its inception, Etalon Group has commissioned 4.5 million sqm. The Company is currently implementing its post-IPO construction programme, which is on track to achieve fourfold growth in construction volumes (from 209 ths sqm to 800 ths sqm).  Etalon Group's CAGR for deliveries in 2010-2014 was 29%.

Etalon Group's strong reputation among consumers supports its pre-sales business model, which helps the Company to minimise external financing needs for on-going projects while maintaining a secure liquidity position: net cash as of 30 June 2014 was USD 10 million.

The Company is vertically integrated, which helps it to control costs, quality and timing, as well as to demonstrate best-in-class profitability. Etalon Group employs over 4,500 people, and its nationwide sales and marketing network covers 36 Russian cities.

As of 31 December 2014, Etalon Group's portfolio comprised 29 projects, with a total of 3.11 million sqm of unsold net sellable area. Jones Lang LaSalle valued this portfolio at RUB 104,286 million, a 17% increase in the market value from YE 2013.

For the year ended 31 December 2014, Etalon Group's new contract sales totalled 457 ths sqm, or RUB 39,961 million. Deliveries in 2014 totalled 580 ths sqm.

The Company recorded revenue of RUB 39.9 billion and EBITDA of RUB 9.4 billion, with an EBITDA margin of 24% for the year ended 31 December 2013.

Etalon Group Limited's GDRs have been traded on the Main Market of the London Stock Exchange since 20 April 2011.

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18 March 2015