Raven Russia Limited Acquisition (5888V)
November 06 2017 - 1:00AM
UK Regulatory
TIDMRUS
RNS Number : 5888V
Raven Russia Limited
06 November 2017
6 November 2017
Raven Russia Limited ("Raven Russia" or the "Company")
Acquisition
The Board of Raven Russia is pleased to announce that a
subsidiary of the Company has entered into an agreement ('the
Agreement") for the acquisition of a logistics park in Moscow.
The Agreement provides for the subsidiary of the Company to
acquire a completed warehouse complex from Industrialniy park
"Sever" Limited Liability Company, a company incorporated in
Russia. Initial consideration of RUR 5.119billion ($86.58million),
is payable with a further deferred element of consideration due
within 18 months of completion, dependent on letting of vacant
space. Deferred consideration payable is estimated to be between
RUR 1.51billion ($25.50 million) and RUR 1.97 billion ($33.29
million). Consideration is satisfied in cash.
The yield on the maximum consideration payable is expected to be
11.38% with a reversionary yield of 12.51%.
The purchase price represents a capital value of approximately
RUR 36,000 per square metre ("sqm") ($600 per sqm) which is at or
below replacement cost.
The agreement is conditional on the satisfaction of certain
escrow arrangements and the acquisition is expected to complete in
early December.
The property comprises a Grade A warehouse complex of 195,132sqm
situated to the north of Moscow approximately 2km from the new
Moscow to Saint-Petersburg toll road. The property was built
between 2014 and 2017 and is 73% let to a number of local and
international tenants, including OBI, O'KEY retail group, Major
Logistics, Miratorg and R-Pharm. Leases are Rouble denominated and
current annualised income is RUR 616million ($10.42million) rising
to RUR 886million ($14.99million) on a fully let, ERV basis. The
current unexpired weighted average lease term is 4 years.
Glyn Hirsch, Chief Executive of Raven Russia said: "We are
pleased to announce our second acquisition of the year at a point
which is increasingly feeling like the bottom of the cycle. ERV
yields of 12+% and capital values at or below replacement cost
represent excellent investment opportunities. In sterling, rents
are now GBP4.60 per square foot and capital values GBP43 per square
foot. We have commenced discussions on investment debt finance on
this deal which should result in a high return on the equity we
ultimately invest. The Russian central bank's further cut in rates
last week to 8.25% should also help sentiment. Hopefully we will
have more of the same (or better) to come"
This announcement is released by Raven Russia Limited and
contains inside information for the purposes of Article 7 of the
Market Abuse Regulation (EU) 596/2014 ("MAR"), encompassing
information relating to the acquisition described herein, and is
disclosed in accordance with the Company's obligations under
Article 17 of MAR.
For the purposes of MAR and Article 2 of Commission Implementing
Regulation (EU) 2016/1055, this announcement is being made on
behalf of the Company by Benn Garnham, Company Secretary.
Enquiries
Raven Russia Limited Tel: + 44 (0) 1481 712955
Anton Bilton
Glyn Hirsch
Novella Communications Tel: +44 (0) 203 151 7008
Tim Robertson
Toby Andrews
N+1 Singer Tel: +44 (0) 20 7496 3000
Corporate Finance - James Maxwell / Liz Yong
Sales - Alan Geeves / James Waterlow
Ravenscroft Tel: + 44 (0) 1481 729100
Semelia Hamon
About Raven Russia
Raven Russia was founded in 2005 to invest in class A warehouse
complexes in Russia and lease to Russian and International tenants.
Its Ordinary Shares, Preference Shares and Warrants are listed on
the Main Market of the London Stock Exchange and admitted to the
Official List of The International Stock Exchange ("TISE"). Its
Convertible Preference Shares are admitted to the Official List of
TISE and trading on the SETSqx market of the London Stock Exchange.
The Company operates out of offices in Guernsey, Moscow and Cyprus
and has an investment portfolio of circa 1.6 million square metres
of Grade "A" warehouses in Moscow, St Petersburg, Rostov-on-Don and
Novosibirsk and 49,000 square metres of commercial office space in
St Petersburg. For further information visit the Company's website:
www.ravenrussia.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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