Sistema's strategy in real estate is aimed at increasing the portfolio's value and its subsequent monetization.
Sistema is present in real estate development business through its shareholding in Etalon Group. Sistema acquired a 25% stake in Etalon Group in February 2019 from the family of its founder and largest shareholder Viacheslav Zarenkov for USD 226.6 million. In February 2019, in a separate transaction Sistema sold 51% in Leader Invest, its Moscow-based real estate developer, to Etalon for RUB 15.2 bln. In August 2019 Etalon acquired the remaining 49% in Leader Invest from Sistema for RUB 14.6 bln.
The company is vertically integrated encompassing the full cycle of value creation: from land plot acquisition and project design to construction and property management. Etalon Group 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 launched new projects in Omsk, the Novosibirsk region as well as Ekaterinburg and Tyumen.
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 commissioned 7.9 million sq m of real estate. Etalon Group’s shares have been listed on the London Stock Exchange since 2011 under the ticker ETLN.