Raven Russia Limited Acquisition and Notice of Results (6560U)

TIDMRUS

RNS Number : 6560U

Raven Russia Limited

19 January 2017

19 January 2017

Raven Russia Limited ("Raven Russia" or the "Company")

Acquisition and Notice of Results

The Board of Raven Russia is pleased to announce that subsidiaries of the Company have entered into a conditional agreement ('the Agreement") for the acquisition of a portfolio of three high quality income producing properties in St Petersburg.

The Agreement provides for the subsidiaries of the Company to acquire a completed warehouse and two office buildings from EPI Russia I Ky, a fund managed by Northern Horizon Capital, for a total consideration of RUR 4.9 billion, subject to the satisfaction of certain escrow arrangements. The Agreement has a long stop date of 28 February 2017.

The portfolio is let to 68 tenants on leases expiring between 2017 and 2021, and is 98% leased. The warehouse space is predominately let in Roubles at today's market rents. The two office buildings are let on a mixture of Rouble, US Dollar and Euro leases. Overall, by area, the portfolio is 87% leased in Roubles, 9% in Euro and 4% in US Dollar. Major tenants include, Otis, Oracle, YIT, Schenker and Maersk.

With income for the next 12 months of approximately US$13million, the purchase price represents an initial US Dollar yield of 16%.

Details of the properties are as follows:

Gorigo Logistics Park - a logistics park of 87,000 square metres situated to the South West of St Petersburg, approximately 16km from the international airport.

Primium Business Centre - an 11,000 square metre office building situated to the North West of St Petersburg and close to the new headquarters of Gazprom.

Kellerman Business Centre - a 22,000 square metre office building in the Admiralty business district of central St Petersburg.

The Company intends to announce its results for the year ended 31 December 2016 on 13 March 2017.

Glyn Hirsch, Chief Executive of Raven Russia said: "We are very pleased to have agreed to acquire this high yielding portfolio of prime properties at a highly opportunistic time in the current cycle. The properties complement our existing portfolio and consolidate our presence in the St Petersburg market. This feels like the perfect time to acquire some exceptional, high yielding, assets at below replacement cost. The more deals we can find like this, the more we will do."

Enquiries

Raven Russia Limited Tel: + 44 (0) 1481 712955

Anton Bilton

Glyn Hirsch

Novella Communications Tel: [phone]

Tim Robertson

Toby Andrews

N+1 Singer Tel: [phone]

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 Channel Islands Securities Exchange Authority Limited ("CISEA"). Its Convertible Preference Shares are admitted to the CISEA Official List and trading on the SETSqx market of the London Stock Exchange. The Company operates out of offices in Guernsey, Moscow and Cyprus and has to date completed a portfolio of circa 1.5 million square metres of Grade "A" warehouses in Moscow, St Petersburg, Rostov-on-Don and Novosibirsk. 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

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January 19, 2017 11:30 ET (16:30 GMT)