Raven Russia sells warehouse unit for EUR 32m

Warehouse specialist Raven Russia has signed contracts to sell its subsidiary, RR Baltiam, to Cypriot-registered company Casebre Holdings for $42 mln (EUR 32 mln). RR Baltia is the owner of a 28,000 m² warehouse property at Baltia, Moscow. Raven Russia said that the purchase price represents a 48% premium to the property's valuation carried out at year-end 2009.

The property was acquired by the company in 2005 and has been fully let since then, generating a net operating income of $3 mln in 2009. The transaction is expected to be completed by the end of 2010.

After repaying the existing bank facilities of $22.3 mln secured on the property, the sale will generate cash proceeds of $20 mln for the company.

'This property has provided an excellent running cash return since the acquisition in 2005,' said Glyn Hirsch, Chief Executive. 'It is now one of our smaller properties and although our strategy remains to build our portfolio, a sale at this price at this time was an attractive opportunity.'

Raven Russia announced plans in June this year to move the listing of its shares and warrants from the Alternative Investment Market (AIM) to the Official List of London Stock Exchange.