LONDON: Etalon Group Plc, one of Russia’s longest-established development and construction companies, has completed its first transactions using state-subsidised mortgages in both of its core regions.

The subsidised mortgage programme is available from 17 April 2020 through 1 November 2020, while the preferential rate of not more than 6.5% is effective for the entire term of the loan. The maximum mortgage loan for housing in the Moscow region and St Petersburg cannot exceed RUB 8 million, and the minimum down payment is 20%.

Etalon Group expects this initiative to provide an additional incentive for mortgage transactions, which, together with online sales that Etalon Group was one of the first in the market to launch, will help to maintain steady demand for the Company’s real estate in the new operating conditions.

Founded in 1987, Etalon Group is one of Russia’s largest development and construction companies. The Company focuses on middle class residential real estate in the Moscow and St Petersburg metropolitan areas. 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 foundation, Etalon Group has commissioned 7 million sqm of real estate.

The Company is vertically integrated, which helps it to control costs, quality and timing, as well as maintain best-in-class profitability. Etalon Group employs over 5,000 people, and its nationwide sales and marketing network covers 58 Russian cities.

In 2019, Etalon Group acquired and consolidated 100% in Leader-Invest, one of Moscow’s largest residential developers by size of land bank and number of projects currently available for sale.

Etalon Group’s total assets comprise 33 projects under development, unsold inventory at completed residential complexes and commercial properties, with total unsold NSA of 3.3 million sqm, as well as construction and maintenance division. Colliers International valued the Company’s total assets at RUB 188 billion as of 31 December 2019.

For the year ended 31 December 2019, Etalon Group’s new contract sales totalled 630 ths sqm, or RUB 77.6 billion. Deliveries in 2019 amounted to 622 ths sqm.

The Company recorded a record revenue of RUB 84.3 billion and EBITDA of RUB 8.9 billion for the year ended 31 December 2019.

Etalon Group’s GDRs have been traded on the Main Market of the London Stock Exchange since 20 April 2011 and on the Level 1 List of Moscow Exchange since 31 January 2020 under the ticker ETLN.