ETALON GROUP PLC (“Etalon Group” or the “Company”), one of Russia’s largest and longest-established development and construction companies, announces the acquisition of a site for a residential development project in Ekaterinburg.
The site for the development, with NSA of 1.5 mln sqm, is located in the southern part of Ekaterinburg, in a fast-growing area with modern residential buildings and all the necessary infrastructure. Within walking distance are preschools and schools, shops, cafes, beauty salons, walking paths and a park with areas for recreation, games and sports. In terms of transport access, the site offers convenient exits onto the Ekaterinburg Ring Road and nearby public transport routes.
Ekaterinburg is the largest city in the Urals and the fourth-largest city in Russia by population. It is one of Russia’s main industrial centres – home to some of the country’s largest metallurgical and machine-building enterprises; it is also an important transport and logistics hub, and a centre of science and education. According to RAEX, the Sverdlovsk region was one of the top 10 regions in the country in 2020 in terms of investment potential, and according to Rosstat, it was among the regions with the highest household incomes in the country.
Etalon Group plans to launch sales for the first phase of the project in 2022 and to complete construction by the end of 2034.
Through the acquisitions programme launched following Etalon Group’s secondary public offering in May 2021, the Company has expanded its portfolio by a total of 3.4 mln sqm, including through the purchase of land plots in new regions of operations.
Commenting on the acquisition of the project in Ekaterinburg, Etalon Group CEO Gennadiy Shcherbina said:
“According to the ambitious strategy we announced in 2020, we planned to enter at least five Russian regions by 2024 and to transform the Company into a leading nationwide player. During the past year, Etalon Group acquired projects in two regions – Omsk and Novosibirsk – and is now embarking on a project in Ekaterinburg. Overall, since the announcement of our regional expansion plans, we have added more than 3 million square metres to our regional portfolio, and our total land bank now amounts to nearly 6 mln sqm. This rapid expansion of our business means we can be confident about fulfilling our plans over the next three years.
“It was not by chance that we chose Ekaterinburg for our latest project. This is one of the largest cities in the Urals and an important industrial, scientific and cultural centre. The Sverdlovsk region is one of the top 10 regions in the country in terms of the amount of capital investment and investment potential. It is an attractive region for living and, of course, for doing business.
“Thanks to Etalon Group’s success in product standardisation, the excellent price dynamics in the region and the high level of household incomes, we can expect project margins comparable to our key markets. And we can count on excellent sales rates thanks to the affordability of housing, made possible by preferential mortgage programmes, the presence of an Etalon Group sales office in the region since 2014 and the high level of awareness of our brand.
“In order to achieve double-digit growth in operating metrics, we plan to further expand our presence both in Etalon Group’s traditional regions and in new markets. We are going to add to our portfolio through the purchase of individual land plots, the implementation of partnership agreements and M&A transactions. I am confident that our strong financial position coupled with industry-leading profitability will support the further profitable growth of our business.”
This and other announcements are available on the Etalon Group website:
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About Etalon Group
Founded in 1987, Etalon Group is one of the largest development and construction companies in Russia. The Company focuses on middle class residential real estate in the Moscow and St Petersburg metropolitan areas. In 2021, the Company began a regional expansion programme and has already entered Omsk, the Novosibirsk region as well as Ekaterinburg. With a 35-year history, Etalon Group has one of the longest and most successful track records in the Russian real estate industry. Since its foundation, Etalon Group has delivered more than 7.9 million sqm of real estate.
Thanks to its integrated business model, Etalon Group is able to create 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 over 4,600 people, and its nationwide sales and marketing network covers 59 Russian cities.
Etalon Group’s total assets comprise 20 projects under development, unsold inventory at completed residential complexes and commercial properties, with total unsold NSA of 2.8 million sqm, as well as a construction and maintenance division. Colliers International valued the Company’s total assets at RUB 204 billion as of 31 December 2020.
In 2021, Etalon Group’s new contract sales totalled 446 ths sqm, or RUB 84.4 billion.
The Company’s revenue in 2020 amounted to RUB 78.7 billion, with EBITDA of RUB 12.6 billion.
Etalon Group’s GDRs have traded on the Main Market of the London Stock Exchange since 20 April 2011 and on the Level 1 quotation list of Moscow Exchange since 31 January 2020 under the ticker ETLN.