Raven Russia highlights financial firepower

AIM-listed warehouse investor Raven Russia has stressed that it has plenty of funding available to take advantage of the difficult market conditions despite the much publicised reports of the difficulties in the banking sector. The company said that it continues to draw down from the $586 mln (EUR 471 mln) in investment and development finance facilities secured from lenders.

'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,' said Anton Bilton, chairman of Raven Mount, the property adviser to Raven Russia

Raven Russia said that it has drawn down $178.5 mln before the announcement of its interim results on 8 September and a further $187.5 mln since then. The funding at Raven's disposal consists of underwritten investment facilities of $267.5 mln and underwritten construction facilities of $319 mln, including $140 mln 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 mln, all of which have been fully drawn,' the company said.

The overall, weighted average cost of investment debt, including fees, is 7.06%, while the current weighted average cost, including fees, of Raven Russia and Megalogix construction finance is 10.45% and 12.15% respectively.

Raven Russia said it is continuing with the construction of its forward funded and Megalogix portfolios. Completed projects and assets under construction comprise 1.2 million m2, with an expected annual rent roll of $167 mln.