Etalon to buy out Russian business of Finnish developer YIT for 4.6 billion rubles – Business – News of St. Petersburg

Etalon Group is acquiring the Russian business of the Finnish construction concern YIT, the amount of the purchase of “YIT Russia” will amount to 4.597 billion rubles, on April 1, the company’s press service said. The decision to acquire was made by the Board of Directors of Etalon, the parties have already reached an agreement, it remains to wait for the permission of the supervisory authorities.

According to the agreements, the land bank “UIT Russia” will be transferred to Etalon Group. It includes 19 projects under development and construction with a net area of ​​more than 0.6 million square meters. m in five regions of Russia: Moscow, Moscow and Sverdlovsk regions, St. Petersburg, Tyumen and Kazan.

Etalon Group will also receive project documentation and a library of standard projects for monolithic and prefabricated prefabricated buildings, exclusive rights to the apartment building management program, and service companies managing 2.5 million square meters. m, and a 50 percent stake in the joint venture with the company “Brusnika”, assets under management are 2.2 million square meters. m.

“The integration of YIT’s business in Russia will allow the Etalon Group to achieve several important goals, including expanding its operations and strengthening our market position. Thanks to YIT’s successful experience in regional markets, we will be able to accelerate our regional expansion by increasing the pace of construction on our own projects in Ekaterinburg and Tyumen, as well as adding new promising projects to the portfolio. In addition, the acquisition of UIT Russia will allow the company to enter one of the most promising markets in Russia – Kazan, expanding its geography to seven regions, as well as increasing supply in Moscow and St. Petersburg, “said Etalon Group CEO Gennady Shcherbina.

According to the latest report (for 2020), the consolidated revenue of the Russian division was 25.5 billion rubles, net profit was 864 million rubles, and 277 million rubles were paid in taxes to the Russian budget. The division has 1,400 employees.

Earlier, YIT explained why he thought about leaving Russia. Financial indicators were affected by the introduction of escrow accounts. In addition, he put an end to sales and complicated the withdrawal of income abroad by a decree of the President of the Russian Federation of March 1, 2022, which banned the registration of real estate transactions from all foreign companies, including those working in Russia through local subsidiaries.

Later, foreign developers in Russia were still allowed to sell apartments under equity agreements.

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