Setl Group Repays VTB Bank’s Loan Ahead of Schedule
2012 december 19
Setl City (a company of the Setl Group holding) has repaid ahead of schedule its debt under VTB Bank’s line of credit opened in August 2011 in the framework of the project funding for the first stage of the More project. The loan of 2.1 billion roubles has been completely repaid more than a year and a half ahead of the fixed date.
The early repayment of the loan by Setl City has become possible thanks to the steady high sales rates and the co-investment contracts that were made on the basis of payment by installments. About 75% of the spaces have been sold in the first stage of the More project which is under construction in Krasnoselsky District of St. Petersburg.
Due to the efficient management of the construction process, Setl City has managed to surpass the work schedule considerably both in the first and in the second stages of the More residential estate. Interior finishing and façade works are under way in the residential houses of the first stage; local heat distribution stations have been already commissioned, and the operations of starting heat supply to the residential spaces have been completed.
‘The reduced time of construction will make it possible for us to materially improve the economics of the project as concerns its internal rate of return and cash turnover period,’ Yan Izak, CEO of Setl Group says. ‘At the same time, the achievement of these figures would be impossible without such a reliable partner in the field of project funding as VTB Bank.’
Sergey Grigoryev, Head of the Major Accounts Directorate of VTB’s Northwestern Regional Center notes, ‘We have been observing positive dynamics in the volumes of new housing construction and a sale pace accounted for by this year’s favourable situation in the construction market of St. Petersburg. Completing ahead of schedule another successful project with the Setl Group holding in the funding of the first stage of the More residential estate, we can see once again the stable high results and efficient work of our partner.’
The comfort-class residential estate More is situated near the Gulf of Finland and the Yuzhno-Primorsky (South-seaside) Park of Victory. The first stage of the residential estate consists of two parts, each of which includes 14 residential sections of different heights with integrated spaces and an underground car-park for 862 cars. The total area of the first stage of the project exceeds 60,000 sq. m. All in all, about 285,000 sq. m of housing are to be built in the More residential estate on land plots over 20 ha in the aggregate area.
Companies of Setl Group holding