Etalon Group 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.”