LSR Group obtains the right to operate without escrow accounts
11 June 2019
LSR Group has become the first developer in St. Petersburg and Yekaterinburg to gain the opportunity to sell housing in accordance with the old requirements of the housing legislation. A couple of days ago, the regional specialized departments signed a Statement of Conformity to confirm that LSR projects comply with the requirements of the Ministry of Construction. This enables LSR Group to continue its operations without the use of escrow accounts.
Maxim Sokolov, CEO of LSR Group, commented: “A great deal of forward planning has been carried out since the new housing legislation was introduced and LSR has successfully risen to the challenge and responded to its demands. This involved carrying out work on previously approved plans while also constantly reviewing and aligning them with the requirements of the new legislation. As a result of these efforts, we have been able to build and sell property without needing to turn to escrow accounts as some of our projects meet the requirements on project completion rates and sales volumes, as set out by the Ministry of Construction.”
The first properties to benefit from the statement of conformity are located in building No. 2 in the “Tsvetnoy Boulevard” residential complex in the Pioneer district of Yekaterinburg. The building is now 68% complete, while the number of contract sales has exceeded 96%. In St. Petersburg, buildings No. 4 and No. 5 of the “Civilization” residential complex on Oktyabrskaya Embankment, Nevsky District, also obtained a Statement of Conformity. The buildings are 58% complete and all apartments have been sold. The Ministry of Construction has set out minimum criteria of 30% completion and 10% contracted sales for developments to conform.
Several other developments that are under construction in St. Petersburg, Yekaterinburg and in Moscow are currently pending the receipt of Statements of Conformity. It is expected that approximately half of the Company’s housing projects that under construction will be completed in accordance with the previous regulatory requirements.
For more information please contact:
Director of Investor Relations and Sustainable Development
E-mail: IR@lsrgroup. ru