Etalon Group Announces Regional Expansion

01 April 2024

ETALON GROUP PLC (“Etalon Group” or the “Company”), one of Russia’s largest and longest-established development and construction companies, announces that it is entering the Rostov region, where, together with a partner, it plans to carry out a large-scale integrated development project.

Last week, Etalon Group completed the acquisition of a 65% stake in a joint venture created for the implementation a major integrated development project in the Zheleznodorozhniy district of Rostov-on-Don, which has a population of over 1 million. The project is going to be developed on a site covering over 300 hectares, with the possibility of expanding the site nearly threefold, to 800 hectares. On a site of this size, the Company is able to build a so-called 15-minute city, where all the necessary infrastructure and amenities are located within walking distance. Particular attention will be paid to developing a comfortable environment, preserving existing green space and landscaping new grounds. The first phase of the project is expected to have NSA exceeding 2 mln sqm.

Under the terms of the partnership, Etalon Group will be responsible for every aspect of project management, including the preparation and approval of permits, design, construction, and marketing and sales management. Following approval of the urban planning documentation, the project is scheduled to get under way in 1H 2025.

The Rostov region is a leading manufacturer of many types of industrial products in Russia and is one of 13 regions in the country that has seen increasing investment five years in a row, with capital investment in the region rising 37% in 2023. The region’s investment portfolio includes around 670 investment projects worth more than RUB 713 billion.

Commenting on the Company’s expansion into the Rostov region, Etalon Group’s Chief Executive Officer, Gennadiy Shcherbina, said:

“In line with our strategy, we continue to expand our operations into cities with a population of over a million. This year, we added a major new project in Rostov-on-Don to our impressive regional portfolio, which includes 3.8 million square metres in five regions. We can build 2 million square metres on the site in just the first phase, with the potential to build three times as much in the subsequent phases of development. With our experience when it comes to carrying out megaprojects and incorporating advanced technologies and green solutions – confirmed by the results of pilot assessment in line with the GOST R green standard – we are able to create a comfortable, modern living environment on the site. Including this new project, we currently have nearly 8 million square metres in our portfolio, and we plan to further expand our land bank this year.

“Looking at the medium term, we intend to expand our geographic footprint to 15 regions by 2026, thus doubling our land bank as well as construction and sales volumes. We expect the severalfold increase in the scale of our operations to more than double our revenue and drive high profitability.”

This and other recent announcements are available on the Etalon Group website:

Contact Information

Etalon Group

IR Team
T: +44 (0) 20 8123 1328



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 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 9.0 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 nearly 6,000 people, and its nationwide sales network covers 35 regions across Russia.

Etalon Group’s assets comprise 32 projects at the design and construction stages in eight regions, unsold inventory at completed residential complexes and commercial properties, and land plots with total unsold NSA of 5.9 mln sqm, as well as a construction and maintenance division. According to Nikoliers, the value of Etalon Group assets as of 31 December 2023 was RUB 303 billion.

In 2023, Etalon Group's new contract sales totalled 547 ths sqm, or RUB 105.6 billion.

The Company's revenue in 2023 amounted to RUB 88.8 billion, with EBITDA of RUB 18.1 billion.

Etalon Group's GDRs are traded on Moscow Exchange (ticker ETLN), where they are included in the Level 1 quotation list.