Etalon Group PLC (“Etalon Group” or the “Company”), one of Russia’s largest and longest-established development and construction companies, announces that it has launched cooperation with reputable banks that offer mortgages with a state-subsidised 6% interest rate.
Thanks to this government initiative, families with children are eligible for mortgages with a subsidised interest rate of 6%, which will be available for a variety of periods depending on the number of children born to the family between 1 January 2018 and 31 December 2022. The subsidised interest rate will be applicable for mortgages with a minimum down payment of 20% and the maximum term of 30 years.
Nearly all of Etalon Group’s residential projects have already been authorised for this programme by banks. Eligible homebuyers will be able to apply for subsidised mortgages to purchase both under construction and completed real estate.
Etalon Group President Viacheslav Zarenkov said:
“A growing number of young families have greater opportunities to buy new homes thanks to the overall decline in mortgage rates and the government subsidy programme.
“We are pleased to be one of the first participants in this initiative, as the share of young families purchasing apartments at our projects is continuously increasing. Etalon Group continues to expand its assortment of projects that meet the needs of young families looking for comfortable living space at affordable prices.
“We expect this programme to provide further stimulus to sales at our projects in Moscow and St Petersburg, supporting our confidence that we will be able to achieve the targets we have announced.”
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
T: +44 7554 993 032
T: +7 499 918 3134
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 Etalon LenSpetsSMU subsidiaries. With a 30-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 5.8 million sqm.
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 debt as of 31 December 2016 was RUB 7.8 billion.
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 5 thousand people, and its nationwide sales and marketing network covers 52 Russian cities.
As of 31 December 2016, Etalon Group's portfolio comprised 35 projects, with a total of 2.82 million sqm of unsold net sellable area. JLL valued this portfolio at RUB 115,818 million.
For the year ended 31 December 2017, Etalon Group's new contract sales totalled 512 ths sqm, or RUB 50,240 million. Deliveries in 2017 amounted to 423 ths sqm.
Etalon Group’s GDRs have been traded on the Main Market of the London Stock Exchange since 20 April 2011.