New Russian property company launching on the stock market

RUSSIA / FSU POLITICS - In Brief 27 Oct 2020 by Alex Teddy
Samolet is a property development company that is about to launch on the Moscow Bourse.There are several public offerings there about to launch by the end of 2020. Samolet was founded in 2012 and has been one of the fastest growing companies this decade. The Samolet's IPO might value it at USD 860 million.Samolet built over 2 million square meters of apartments in Moscow and its environs. Samolet has 15 million square meters of land that it is not using yet.Samolet has benefited from government schemes to encourage construction and spread homeownership. Low interest rates after 2013 and the government's maternity capital policy have helped. There have been years of easy credit through loans and credit cards. This has also caused more building.Since March 2020 the government has made construction the centerpiece of its recovery scheme. There are no subsidized mortgages. Borrowers can obtain a housing loan at 6.5% interest for a newly constructed apartment. That seems high in the West. But ten years ago it was 14% in Russia.In August 2020 banks issued the second highest number of mortgages for any month. USD 5.2 billion was lent. It was a 48% increase YoY.

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