Samolet Bolsters Position in Moscow Region with Acquisition of MIC Group

Samolet Group (MOEX: SMLT), one of Russia’s leading proptech and development corporations, announces that it has signed an agreement to acquire a 100% stake in MIC Group, one of the largest development companies in the Moscow region, from several individuals. The deal will include all of MIC Group’s existing business: projects under construction and future projects, including land plots in the Moscow region, as well as all tangible and intangible assets, including all management companies, networks and headworks for the construction and operation of residential complexes and intellectual property rights. Samolet Group will use bank financing to complete the transaction, with payments to be made in several tranches. The conclusion of the deal is pending regulatory approval from the Federal Antimonopoly Service.

Under the terms of the agreement, Samolet Group will acquire the more than 50 companies that make up MIC Group as well as the Group’s land bank in Moscow, New Moscow and the Moscow region, including 11 projects at the construction and design stage. At the same time, Samolet Group will assume in full all obligations to MIC Group’s customers with respect to customer support as well as the completion of construction and the operation of residential complexes. Samolet Group intends to carry out all projects in the land bank acquired from MIC independently.

Anton Elistratov, Samolet Group’s CEO and a member of the Company’s Board of Directors, said:

“We are acquiring a very high-quality asset—one of the best portfolios in the Moscow market in terms of the quality, scale and location of projects, and one that to a large extent complements our existing portfolio. The acquisition of MIC Group will enable us to greatly expand our land bank, bolster our position in the Moscow region and increase our volume of ongoing construction to 4.2 million square meters across Russia.

“We intend to integrate the new project portfolio into our Moscow business unit, using our own proven approaches in terms of procurement, sales, construction of urban neighborhoods and customer service.

“The purchase of MIC Group will enable us to speed up the development of Samolet Group considerably, providing a high return on investment for all Company shareholders, who now number over 100 thousand. At the same time, as part of our strategy, we have no intention of slowing the pace of development of our new business streams, including Samolet Plus—a nationwide service choosing, purchasing, selling and renovating apartments in the primary and secondary markets—Samolet Fintech and our new projects in the field of education.”

Samolet Group has engaged B1 (formerly EY) to conduct independent legal, financial and tax due diligence, as well as to provide advisory services with respect to the deal.

About MIC Group

Founded in 1999, MIC Group is a major development company and one of the leaders in the Moscow region’s real estate market. MIC Group provides a full cycle of work: from the conceptual development, construction, delivery and operation of properties to the provision of comprehensive services for the purchase and sale of real estate in every segment in the Moscow market. More than 20 projects have been completed or are under construction of MIC Group. The company builds comfort- and business-class projects.

About the company

Samolet Group is one of Russia’s largest federal corporations in proptech and development. The company continues to develop the following business units: online real estate services platform Samolet+, a managing company, commercial and rental real estate funds, development projects across all segments in Russia, residential housing, resort real estate, and others.

As at December 31, 2022, the Group’s external asset valuation reached RUB 761 billion, including a land bank of 45.9 million sqm and a brand worth RUB 40.2 billion. The Group is included in the Russian government’s list of strategically important companies. Samolet Group is ranked the largest in the Moscow region and the second-largest in Russia in terms of ongoing construction volumes. The Company has offices in more than 100 cities across Russia and the CIS, employing some 5,000 people. The Company’s mission is to improve the quality of life for its residents in modern urban quarters while helping them save their most valuable resource – their time.

Media Relations

Olga Migacheva
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Investor Relations

Nikolai Minashin
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EМ

Dmitry Zhadan
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+ 7 916 770 8909

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