27th Jun 2006 12:34
Raven Russia Limited27 June 2006 RAVEN RUSSIA LIMITED (the "Company" or "Raven Russia") Notification of joint venture The Board of Raven Russia Limited is pleased to announce the creation of a jointventure with Aldama (Overseas) Limited ("Aldama"). Raven Russia has entered into an agreement with Aldama to jointly acquire anddevelop a number of sites in Russia suitable for construction of warehouses. The first project, the purchase of 61.8ha of land to the east of Moscow has beenidentified and the site acquired. This freehold site is in the Moscow Region, close to the town of Noginsk, eastof Moscow city, and is already zoned for development. The joint venture anticipates a total of up to 300,000 sq. m. (3,000,000 sq.ft.) of grade A warehouse space can be built. Total project costs are estimated at $184 million which will provide for a yieldon cost in excess of 18%. Based on current market yields the development has a projected end valueapproaching $300 million. The construction work will be managed by the ESPRO group, one of the mostsuccessful and experienced developers of warehouses in Russia. ESPRO have been responsible for completing three projects in the Moscow regionfor the Kulon group (two of which were acquired by Raven Russia) and they have anumber of other sites under consideration. Raven Russia will provide development finance to the joint venture. The jointventure agreement provides for Raven Russia to acquire 100% of the project oncethe development is completed and let. Quotes: Adrian Collins, Chairman of Raven Russia Limited, said: "This joint venture with Aldama was anticipated when Raven Russia was formed andwe are delighted it has now acquired its first site. Raven Russia will benefitfrom being in a joint venture with an experienced local partner with whom wehave an excellent relationship." Roman Klimov for Aldama said: "We are very happy to have signed this agreement with Raven Russia. We believethat the combination of our strengths will bring many benefits to both parties." This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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