AIM-listed warehouse property investor Raven Russia said it has signed a $170 mln (EUR 108 mln) construction and term loan facility agreement with VTB Bank Europe. Raven said the senior debt facility with its Megalogix warehouse joint venture would be used to finance its 200,000 m[sup]2[/sup] Rostov logistics project in southwest Russia.
AIM-listed warehouse property investor Raven Russia said it has signed a $170 mln (EUR 108 mln) construction and term loan facility agreement with VTB Bank Europe. Raven said the senior debt facility with its Megalogix warehouse joint venture would be used to finance its 200,000 m2 Rostov logistics project in southwest Russia.
The seven-year debt facility comprises an initial $100 mln to fund 75% loan to cost for the first phase of the Rostov project and an option of an uncommitted $ 70 mln to fund 75% loan to cost for the second phase. Based on current LIBOR rates, Raven said the loan is at an overall interest cost to the joint venture of less than 7%.
Raven Russia said the $170 mln facility is part of the $213 mln of construction finance it had indicated it was finalising when it announced financial results on 10 March. Despite the credit crisis, the company said it was confident it would shortly be able to announce other senior debt commitments to allow it to achieve the $213 mln target.
