Forum Group and Sberbank concluded an agreement

At the INNOPROM Industrial Trade Fair, Forum Group and Sberbank concluded an agreement one of the key points of which is the use of escrow accounts for financing real estate construction.

The agreement was signed by Vladimir Cherkashin, the Chair of the Ural Bank of Sberbank, and Sergey Vorobiev, the General Director of Forum Group.

On July 1, 2019, the Federal Law will prohibit all the developers in Russia from accepting citizens’ money for apartments in uncompleted houses. Far-seeing developers already start implementing new instruments to thoroughly test them in practice.

Sergey Vorobiev: “We see that Sberbank introduces modern products to the market actively and quickly, including those for development. The mechanism in question will create most comfortable conditions for equity holders. We think it really promising.”

The new mechanism will enable developers retain the opportunity to sell housing at the stage of construction. But the customers shall transfer the payments for their housing to specialized escrow accounts in authorized banks and not to the developer’s account. According to experts, amendments in the escrow accounts related legislation will protect equity holders’ interests.

The agreement signed stipulates that Sberbank will continue its cooperation with the developer in financing significant real estate units in the capital of the Urals. They include Forum Group’s new projects, too, such as Isetsky Park Residential Complex, and large-scale development projects such as the Solnechny district.