Russia’s Sberbank has provided RUR 18.8 bln ($285 mio) to build Silver Fountain business class residential complex in Moscow, bank’s web page reports, noting “Sberbank and Etalon Group have entered into a framework agreement on providing project financing for Silver Fountain. The credit facilities Sberbank has provided under the agreement will be available for a long period – Etalon Group is scheduled to finish repayment in H1 2024.
Construction of one section of the residential complex will be financed using escrow accounts. According to Natalya Shemanovskaya, Managing Director and Head of the Real Estate Division of Sberbank, “The deal with Etalon Group shows that Sberbank is already financing the construction of residential real estate taking into account the selling of flats using escrow accounts, and is actively working in this area with major real estate developers.”
“Etalon Group is one of the most well-established Russian developers and has successfully used practically all methods of financing. Now we are delighted to be among the first participants of the escrow account system, which the Russian government has chosen as the primary method according to which market players will operate,” Kirill Bagachenko, CFO of Etalon Group, noted.
Silver Fountain residential complex is being built on a 7.7 hectare plot in Moscow’s Alexeyevsky District and includes four residential blocks, apartments, a business center, a nursery and parking area to accommodate 2,100 vehicles. The project has been awarded a platinum certificate for compliance with Russia’s GREEN ZOOM professional standard for real estate energy efficiency, water efficiency and environmental friendliness.