Etalon Group completes acquisition of Leader-Invest

16 August 2019

ETALON GROUP PLC (“Etalon Group”, or the “Company”), one of Russia’s largest and longest-established development and construction companies, announces that its subsidiary Etalon Group Company AO has completed the purchase of the remaining 49% of the share capital of Leader-Invest JSC (“Leader-Invest”) from Sistema PJSFC (LSE:SSA,  MOEX:AFKS), a publicly-traded diversified holding company (“Sistema”), for RUB 14.6 billion (the “Transaction”).The Transaction was financed by an eight-year credit line provided by Sberbank.

Acquired assets

Leader-Invest is one of the largest players on Moscow’s residential development market by size of landbank and number of available-for-sale projects. It focuses primarily on infill development and large scale integrated urban development projects in the comfort, business and premium class segments. 

Leader-Invest’s project portfolio, including the recently consolidated ZIL-Yug project, consists of 31 projects currently at the construction and design stages, as well as unsold residential real estate at eight completed residential complexes and commercial real estate, with a total NSA of 1.9 million sqm. As of 31 December 2018, Leader-Invest’s project portfolio, including the acquisition of LSR’s stake in the ZIL-Yug project, was valued at RUB 86,266 million, according to Knight Frank.

This and other recent announcements are available on the Etalon Group website: https://www.etalongroup.com/investor-relations/investor-news/

Etalon Group IR Team

T: +44 20 8123 1328
E: info@etalongroup.com

EM

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

About Etalon Group

Founded in 1987, 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 its Etalon Invest and Etalon LenSpetsSMU subsidiaries. With a more than 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 6.3 million sqm.

Etalon Group's traditionally conservative approach managing its financial position, solid cash generation and strict working capital management have enabled the company to maintain a secure liquidity position: net cash as of 31 December 2018 was RUB 2.2 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 over 5,000 people, and its nationwide sales and marketing network covers 58 Russian cities.

In February 2019 Etalon Group acquired 51% of the shares of Leader-Invest, one of Moscow’s largest residential developers in terms of land bank and number of projects currently available for sale. In August 2019 Etalon Group acquired the remaining 49% of Leader-Invest, and consolidated 100% ownership of Leader-Invest.  

As of 31 December 2018, Etalon Group's assets comprised 76 projects, including 40 Leader-Invest projects and a construction and maintenance division, with a total of 3.4 million sqm of unsold net sellable area. Knight Frank valued the Company’s total assets under management at RUB 186,908 million.

For the year ended 31 December 2018, Etalon Group's new contract sales totalled 628 ths sqm, or RUB 68,731 million. Deliveries in 2018 amounted to 479 ths sqm.

The Company recorded revenue of RUB 72.3 billion and EBITDA of RUB 5.7 billion for the year ended 31 December 2018.

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