8th Nov 2006 10:22
Raven Russia Limited08 November 2006 For immediate release: 08 November 2006 Raven Russia Limited ("Raven Russia" or the "Company") Acquisition and Trading Update Rostov-on-Don acquisition The Board of Raven Russia are pleased to announce that the Company's jointventure with the Avalon Group has agreed terms to finance the purchase of thefirst site of the proposed programme of developing logistics warehouses in 14cities across Russia and the CIS. The site is situated in Rostov-on-Don and conditional contracts have beenexchanged by the Avalon Group to acquire the land subject to permits and zoning.It is anticipated that it should be possible to construct up to 230,000m2 ofGrade A warehousing in phases on the site. This is estimated to require totalfunding of approximately US$166.6m and have an estimated end value to the jointventure of some US$200m. The investment has been made by the Company on thebasis of the Property Adviser's estimate that the yield on the total cost of theproject will be approximately 15.5%. The Rostov-on-Don region has a populationof over four million, the fifth most populated area in Russia. A subsidiary of the Avalon Group, Avalon Logistics, intends to pre-let 45,000m2on a 10 year lease Avalon Logistics is a pan Russian logistics operator offeringintegrated logistics solutions to its clients. Trading Update The Property Adviser on behalf of the Company continues to make good progress incommitting shareholders' funds to property projects in Russia. Investment Portfolio By early 2007 the Property Adviser estimates that the Company's investmentportfolio will comprise a total of 156,000 m2 (1,679,000 sq ft) producing atotal net rental income of approximately US$18.7m per annum, representing ayield on total investment of 12.47%. Development Portfolio The Company also has a development portfolio of forward funded joint venturesand forward commitments to purchase which, when developed, are estimated tocomprise a further 868,000m2 (9,343,152 sq ft) which the Property Adviseranticipates will produce total net rental income of approximately US$96.61m onan anticipated end value of US$781m. The investments have been made by theCompany on the basis of the Property Adviser's estimate that the yield oninvestment is expected to be in the region of 14%. Pipeline In addition to these projects, the Company is in detailed negotiations and/orengaged in due diligence on a number of other transactions which the PropertyAdviser anticipates will have an end value of some US$897.3m. The Company is now well advanced in the conversion of its original deal pipelineinto transactions. The Property Adviser is also well advanced on discussionsregarding refinancing opportunities across the investment and developmentportfolio. For further information: Jeremy Carey/Richard SunderlandTavistock CommunicationsTel: 020 7920 3150Email: [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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