ETALON GROUP PLC (“Etalon Group” or the “Company”), one of Russia’s largest and longest-established development and construction companies, announces the results of its asset valuation as of 31 December 2018, conducted by Knight Frank.
The total value of the Company’s assets under management reached RUB 187 billion, or USD 2.7 billion at the Central Bank of Russia exchange rate as of 31 December 2018. This valuation puts Etalon Group’s share of the total asset value, excluding Sistema PJSFC’s remaining stake in Leader-Invest, at RUB 154 billion or USD 2.2 billion, which represents USD 7.5 per GDR.
The Knight Frank valuation includes Leader-Invest’s projects, reflecting Etalon Group’s acquisition of a 51% stake in Leader-Invest in February 2019. Leader-Invest assets valued by Knight Frank comprise 31 projects under development, as well as unsold inventory at completed residential complexes and land plots for sale, with a total NSA of 1.3 million sqm. Knight Frank valued Leader-Invest’s projects at RUB 67 billion as of 31 December 2018.
Furthermore, this valuation also includes Etalon Group’s construction and maintenance division, which increased by 21% year-on-year to RUB 10 billion following its first valuation in 2017.
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, 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.
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.