Raven Property Group Limited Acquires Sever logistics
The Board of Raven is pleased to announce that a subsidiary of the Company has entered into two agreements for the acquisition of an extension to the Sever logistics park in Moscow. The existing site was previously acquired by the same subsidiary on 28 November 2017.
The Agreements provide for the subsidiary of the Company to acquire a warehouse building, adjacent to the existing site, from Industrialniy park "Sever" Limited Liability Company, and from "Astreya" Joint Stock Company, both incorporated in Russia (together, "the Sellers").
Consideration for the acquisition, to be satisfied in cash, totals RUR 2.45 billion ($36.2 million), with RUR 160.0 million ($2.4 million) deferred for between six to eight months following completion and payable on the fulfillment of the Sellers' obligations under the Agreements.
Both agreements are conditional on the satisfaction of certain escrow arrangements and the acquisition is expected to complete in late September.
The property comprises a Grade A warehouse building of 58,851sqm, completed in 2017 and it is currently 78% let with an unexpired weighted average lease term of 9 years and annual indexation of 6%. Current annualized lease income, before indexation, is RUR 231.2 million ($3.4 million) rising to RUR 271.7 million ($4.0 million) when fully let.
With this addition, the Sever logistics park will comprise 253,983sqm of warehouse space with an expected, combined acquisition yield of 11.3%.
Glyn Hirsch, Chief Executive of Raven said: "We are delighted to acquire this high quality warehouse which is well known to us. The existing weighted average lease length of 9 years and annual indexation of 6% significantly enhances our on going yield. We hope to announce further acquisitions during the course of the year and our 2018 Interim Report will be released on 28 August 2018."
This announcement is released by Raven Property Group Limited and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 ("MAR"), encompassing information relating to the acquisition described herein, and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of the Company by Benn Garnham, Company Secretary.