Etalon Group Limited (ETLN) - Etalon Group Launches Sales for Letniy Project
RNS Number : 7205P
Etalon Group Limited
29 October 2012
29 October 2012
Etalon Group Launches Sales for Letniy Project
St. Petersburg - Etalon Group Limited ("Etalon Group" or the "Company"), one
of Russia's largest and oldest residential real estate developers, is pleased
to announce it has received a construction permit and launched sales for
Letniy, a 64.3 ths sqm NSA comfort class residential construction project in
Project Letniy is located on a 2.1 hectare land plot in the south of the
Moskovsky district of St. Petersburg. It will consist of three buildings of 24
storeys each, containing a total of 990 flats, as well as 3-storey multi-level
parking. The project has good transport accessibility, located 2 km from
Pulkovo Airport and 1 km from the airport railway station, close to the
Pulkovskoe highway (which puts the centre of St Petersburg approximately 15
minutes away by car). The project is within walking distance from a shopping
and entertainment zone. Etalon Group launched sales of flats in October 2012,
and plans to deliver the project in 2013. Demand for flats in the project is
high, with approximately 120 flats (12% of total) already contracted as of the
date of this release.
The launch of sales on project Letniy marks the third step in Etalon Group's
eight-step programme announced this year.
Other recent announcements are available on the Etalon Group website:
Etalon Group IR Team
T: +44 (0) 20 8123 1328
T: +7 495 363 2845
About Etalon Group
History and Overview
Founded in 1987 by Viacheslav Zarenkov, Etalon Group has become one of
Russia's largest residential real estate developers. With a 25-year history,
the Company has one of the longest and most successful track records in the
Russian real estate industry.
Today Etalon Group is a leading player in Russia's "Golden Triangle" - St
Petersburg, Moscow and the greater Moscow area, with a dominant position in
the "comfort class" segment. The Company's strong foothold in these markets
is reinforced further by its unique nationwide sales network covering 9 of the
10 wealthiest regions of Russia, and spanning 30 cities in total. The sales
network generates up to 30% of Etalon Group's revenue, and has been an
important source of stable demand even throughout the crisis.
Etalon Group is one of the only truly vertically integrated businesses in the
Russian real estate sector. The Company does everything from acquiring land
to sales and cash collections from its customers, which enables it to maximise
margins throughout the value chain, and reduces exposure to cost inflation
from external service providers. Etalon Group is a company of scale, with a
total of 40 business units that employ over 4,000 people, two strong
management companies, five general contractors, 16 subcontractors, a crane
company, a brick factory and a nationwide sales network.
Etalon Group's strong financial position is driven by its effective pre-sales
business model. The Company aims to pre-sell 70-90% of all residential space
before a building is delivered. It also targets an average down payment of
50%. This allows Etalon Group to finance the construction process using money
from customers, as opposed to using the loans or funding from shareholders.
In addition to homebuilding, Etalon Group's long history and superior quality
offering has helped it to become a trusted industrial construction partner for
clients like General Motors, Toyota, Ford Motors, Bosch, Siemens, Nissan,
Suzuki and Gazprom in northwest Russia.
Since 20 April 2011, Etalon Group Limited has had its GDRs traded on the Main
Market of the London Stock Exchange.
Operational and Financial Highlights
As of 31 December 2011, Etalon Group's portfolio comprised 31 projects, with a
total of 3.25 million sqm of unsold net sellable area ("NSA") in the St.
Petersburg and Moscow Metropolitan Areas. Jones Lang LaSalle valued this
portfolio at USD 1,714 million, a 20% increase in the market value from YE
For the year ended 31 December 2011, Etalon Group's new contract sales
totalled 270,012 sqm, or RUR 18,306 million. Deliveries in 2011 totalled 328
The Company recorded revenues of RUB 22.7 billion (USD 774 million) and EBITDA
of RUB 8.2 billion (USD 279 million), with an EBITDA margin of 36% for the
year ended 31 December 2011, making it one of the most profitable players in
Etalon Group's net cash position at 31 December 2011 was USD 167 million,
leaving it well positioned to fund continued dynamic growth.
This information is provided by RNS
The company news service from the London Stock Exchange
MSCGLBDGIBDBGDC -0- Oct/29/2012 07:00 GMT
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