27th Oct 2008 07:00
RAVEN RUSSIA LIMITED
('Raven Russia' or the 'Group')
Update on draw down of finance facilities
Raven Russia, the Guernsey-registered, AIM-listed property investment group, focussing on warehouses in Russia, announces that, despite the highly publicised difficulties in the banking environment, the Group has continued drawing down on the previously announced $586.5 million of underwritten finance facilities from its financial lenders. At the interim results date Raven Russia had drawn down $178.5 million and since the interim results a further $187.5 million has been drawn down or acquired.
At the time of announcing its interim results, on 8 September 2008, Raven Russia confirmed that it had underwritten investment facilities of $267.5 million and underwritten construction facilities of $319 million, including $140 million construction facilities for its Megalogix Joint Venture. Only in one instance, on the Megalogix portfolio, has it been necessary to renegotiate terms, reducing those facilities to $100 million, all of which have been fully drawn.
In summary, investment facilities drawn to date total $207.5 million, $29 million having been drawn since the interim announcement. The remaining balance of $60 million will be drawn from Aareal Bank by 22 December 2008. The overall, weighted average cost of investment debt, including fees, is 7.06%.
Construction finance of $158.5 million has been drawn since 30 June 2008, from total committed facilities of $279 million. The balance of the facilities will be drawn over the remaining construction period, the majority completing by the end of Q1 2009. The current weighted average cost, including fees, of Raven Russia and Megalogix construction finance is 10.45% and 12.15% respectively.
Raven Russia continues with the construction of its forward funded and Megalogix portfolios, with current completed projects and assets under construction consisting of 1.2 million square metres. When fully let, the expected annual rent roll of the portfolio is $167 million.
Anton Bilton, Chairman of Raven Mount plc, the Property Adviser to Raven Russia said: "This successful debt financing demonstrates the strength of the Raven Russia business model in these turbulent times. The Group now has both a comfortable gearing level and debt repayment profile, placing it in an ideal position to take advantage of the opportunities that are bound to arise in such testing global market conditions." Richard Jewson, Chairman of Raven Russia added: "The continuing availability of project finance through these extraordinary times is testament to the success of our development and letting programme."
Further details on facilities drawn in the period since announcement of interim results:
Construction facilities
An 18 month, Euros 49.1 million facility with HSH Nordbank AG to fund the construction of the first phase of the Noginsk logistics project in Eastern Moscow. An initial 11m Euros has been drawn with the remainder to be drawn in line with the construction programme.
A two year, $60 million facility with VTB Europe PLC to fund the construction of phase 1 of the Megalogix Joint Venture logistics project in Rostov. The original committed facility of $100 million was subsequently reduced by mutual agreement due to current banking liquidity pressures. The $60 million facility has been fully drawn.
A seven year, $95 million facility with the International Finance Corporation (IFC) to fund the construction of the Megalogix Joint Venture logistics project in Novosibirsk. The initial $40 million of committed IFC funds has been drawn with a further $55 million to follow upon successful syndication.
Investment finance
A five year term, $89 million investment finance facility for phases 1 and 2 of the Istra logistics complex in Western Moscow with Aareal Bank AG. An initial $29 million has been drawn with a further $30 million to be drawn on 24 November 2008 and the final $30 million on 22 December 2008. The facility has a 30 year amortisation profile.
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Enquiries
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Investor Relations |
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Raven Russia |
Email: [email protected] |
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Media Relations |
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Bell Pottinger Corporate & Financial |
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Mike Davies / ZoeSanders
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Tel: +44 (0)20 7861 3887 |
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Broker |
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Numis Securities Limited |
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Nick Westlake (NOMAD) / Rupert Krefting |
Tel: +44 (0)20 7260 1000 |
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