Etalon Group announces that it has entered the development market in the Tyumen region. The Company plans to develop projects in partnership with Strana Development Group, one of the largest developers in the region.
This week, the Company completed the acquisition of a 50% stake in Strana Etalon LLC, a joint venture created with Strana Development Group to carry out construction in Tyumen. The remaining 50% stake in Strana Etalon LLC belongs to Strana Development Group. At the start of their collaboration, the companies plan to develop a joint pilot project with NSA of at least 200 ths sqm. The start of construction and the launch of sales are slated for 2H 2022. The project is expected to be delivered in 2026.
In addition, the terms of the agreement call for Strana Development Group and Etalon Group to expand their portfolio of joint projects to at least 800 ths sqm over the next five years. There are a number of land plots being considered for joint implementation, including a 40-hectare plot in central Tyumen.
The Tyumen region is the largest centre for the oil and gas industry in Russia. Oil production in the region is carried out by companies such as Rosneft, Surgutneftegas and Gazprom Neft. The Tyumen region has the second-largest gross regional product in Russia, following only by Moscow, and is among the top 10 regions in the country in terms of per capita income and population size. In 2021, the region ranked third in a national rating of the investment climate in the constituent entities of the Russian Federation.
The expansion of Etalon Group’s geographic footprint is in line with the Company’s development strategy approved at the end of 2020. The Tyumen region is the Company’s fourth new regional market, following Omsk, Novosibirsk and Ekaterinburg.
Commenting on the Company’s entry into the Tyumen market and the creation of a joint venture with Strana Development Group, Etalon Group CEO Gennadiy Shcherbina said:
“Entering new regions through the creation of joint ventures is in line with our business development strategy. Today we are pleased to announce our entry into Tyumen’s real estate market, where we will develop projects together with one of the leaders in the Tyumen residential real estate market, Strana Development Group. The Tyumen market is one of Russia’s most competitive regions and, at the same time, one of the most profitable. Partnering with a strong local player enables us to expect to achieve our financial targets, and it also creates excellent opportunities for the further growth of our business. We look forward to a long and fruitful relationship that will not be limited to one project. And, of course, not only are we going to promote the Etalon Group brand in Tyumen, Ekaterinburg, Novosibirsk and Omsk, but we are also going to give careful consideration to other promising regional markets.”
Strana Development President Alexander Gaidukov said:
“Cooperation with one of Russia's largest and most experienced developers is strategically important for the development of our business. We are confident that the synergy of our experience in Tyumen and the Etalon Group team’s strong competencies, will help to make future joint projects landmarks in the region and contribute to further growth of residential construction in Tyumen.”