Letting market remains strong, says Raven Russian

Raven Russia, the Russia focused property investment company, said the letting market in its sector remains strong as it heads towards the year end with its assets in Moscow, St Petersburg and Rostov expected to be virtually fully let by December 31st.

The group said annualised net operating income, or NOI, stands at $168m, rising to $170m, including letter of intents or LOIs.

Raven also said it has started construction of a managed development programme of its Moscow land bank of 49,000 square metres of new space.

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"As these are new phases of existing sites, the total marginal cost of construction is budgeted at $35m, with delivery expected at the end of Q2 2013," the group explained.

Novosibirsk is the slowest of the markets it operates in but it continues to show steady interest, it added.

Chief Executive Glyn Hirsch said: "We now have a mature portfolio of high yielding assets. To continue our steady growth, we are using our cash resources to develop selectively our Moscow land bank."

Group cash balance is currently $156m.

CJ