Sberbank has provided Etalon Group, one of Russia’s leading real estate development and construction companies, with a credit line of up to RUR 16,83 bln for 5 years. The funds will be used to acquire 51% of the share capital of Leader-Invest from JSFC Sistema, a publicly traded diversified Russian holding company.
Founded in 1987, Etalon Group is one of Russia’s largest development and construction companies. It focuses on real estate for the middle-class segment in Moscow, the Moscow Region, and Saint Petersburg. With over 30 years of experience in real estate development and construction, it has one of the longest and most successful track records in the Russian real estate industry. Since its inception, Etalon Group has commissioned 6.3 million sq. m of real estate.
As of 30 June 2018, Etalon Group’s portfolio included 39 projects with a total area of 2.73 mln sq. m available for sale, and a construction and maintenance division. Knight Frank has valued the Etalon Group’s assets at RUB 132 bln. Etalon Group recorded revenue of RUB 70.6 bln and EBITDA of RUB 13.2 bln for the year ended 31 December 2017.
“Thanks to Sberbank’s credit line which we will use to buy Leader-Invest, Etalon Group will be able to significantly grow its presence in Moscow’s residential real estate development market. We will become one of the leaders in terms of number of projects currently available for sale. This lending agreement is the next step in our partnership with Russia’s largest bank and sets the stage for further successful development of our relationship,” Kirill Bagachenko, CFO of Etalon Group, noted.
Leader-Invest is one of Moscow’s largest residential developers in terms of land bank and number of projects currently available for sale. Its primary focus is on infill development projects and integrated development of large-scale mixed-use projects in the comfort-, business- and premium-class segments.
Leader-Invest’s portfolio includes 31 residential and commercial real estate projects with a total area of around 1.3 mln sq. m (as of 1 October 2018). Colliers International has valued Leader-Invest’s portfolio at RUB 66.6 bln. The company has a B credit rating with a positive outlook from Standard & Poor’s.