Raven Russia makes double acquisition

Property investment firm Raven Russia announced two acquistions on Tuesday, both of which are close to Moscow.

The first purchase is for a 45,237 square metre completed grade-A warehouse at Sholokhovo, located to the North of Moscow, for a consideration of $49.75m. The property is let to two tenants, Kuehne & Nagel and Perekrestok, on leases which expire in 2017 and 2015, respectively.

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The property has an existing $20.15m debt facility until 2021 at a margin of 6.5% over US LIBOR, meaning the equity requirement is $29.6m.

The second contract is was signed by a subsidiary of the company for the purchase of 38 hectare of zoned development land at Padikovo, to the north west of Moscow, for $23m.

The company intends to construct up to 200,000 square metres of new warehousing on the site, subject to obtaining detailed consents, tenant demand and development funding. Discussions with a potential bank are already in progress for development finance.

Glyn Hirsch, Chief Executive of Raven Russia said: "Sholokhovo is well located Grade A warehouse in Moscow, with two strong tenants. The acquisition will be earnings enhancing from day one and is partly funded by an attractive long term debt facility.

"The Padikovo development will allow us to increase the size of our Moscow portfolio by over 20% in a location close to our existing Istra project where we know tenant demand is strong."

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