Raven Russia Limited MoU signed with Russian Co-Op (3449F)

TIDMRUS

RNS Number : 3449F

Raven Russia Limited

17 May 2017

17 May 2017

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

Signing of Memorandum of Understanding with the Russian Co-Op

The Board of Raven Russia is pleased to announce that it has signed a memorandum of understanding ("MOU") with the Central Union of Consumer Cooperatives for the Russian Federation ("the Co-Op") to develop a nationwide network of wholesale distribution centres for agricultural products.

The MOU provides for the parties to create a network of modern warehouse storage, primary processing and distribution facilities for a full range of agricultural and grocery products in different regions of the Russian Federation. Raven Russia will own these facilities and the Co-Op will lease and operate the wholesale distribution centres.

The parties envisage that the properties will comprise traditional warehouses, together with specialised storage facilities for different types of products including fresh fruit, vegetables, fresh meat and fish products and grain.

It is anticipated that Raven Russia will provide financing to the project, to permit the acquisition and development of sites along with external project finance. Unleveraged target returns are a minimum of 12% in Rouble terms.

The Co-Op has a 185 year history and is the central body for the consumer cooperative system in the Russian Federation that unites more than two thousand six hundred consumer societies and more than 2.5million unit holders countrywide. These consumer societies include production organisations, purchasing centres for agricultural products, domestic services centres, public catering establishments, and shops. The member organisations provide jobs for around 200,000 people.

Anton Bilton, Executive Deputy Chairman of Raven Russia said: "We are delighted to sign this MOU with the Co-Op and anticipate developing a large scale network of distribution centres across the Russian Federation."

Dmitriy Zubov, Chairman of the Council of the Co-Op said: "The cooperation in this area will help optimise the storage, primary processing and distribution of food and facilitate access to markets for small, medium and large agricultural producers."

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 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 49,200 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

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May 17, 2017 02:00 ET (06:00 GMT)