Raven Russia acquires three properties in St. Petersburg for RUR 4.9 billion
Subsidiaries of the company Raven Russia have entered into a conditional agreement for the acquisition of a portfolio of three high quality income producing properties in St. Petersburg.
The agreement provides for the subsidiaries of the Company to acquire a completed warehouse and two office buildings from EPI Russia I Ky, a fund managed by Northern Horizon Capital, for a total consideration of RUR 4.9 billion, subject to the satisfaction of certain escrow arrangements. The Agreement has a long stop date of 28 February 2017.
The portfolio is let to 68 tenants on leases expiring between 2017 and 2021, and is 98 percent leased. The warehouse space is predominately let in Roubles at today’s market rents. The two office buildings are let on a mixture of Rouble, US Dollar and Euro leases. Overall, by area, the portfolio is 87 percent leased in Roubles, 9 percent in Euro and 4 percent in US Dollar. Major tenants include, Otis, Oracle, YIT, Schenker and Maersk.
With income for the next 12 months of approximately US$13million, the purchase price represents an initial US Dollar yield of 16 percent.
Details of the properties are as follows:
Gorigo Logistics Park – a logistics park of 87,000 sqm situated to the South West of St. Petersburg, 16km from the international airport.
Primium Business Centre – an 11,000 sqm office building situated to the North West of St. Petersburg and close to the new headquarters of Gazprom.
Kellerman Business Centre – a 22,000 sqm office building in the Admiralty business district of central St. Petersburg.
The company intends to announce its results for the year ended 31 December 2016 on 13 March 2017.
Glyn Hirsch, Chief Executive of Raven Russia, said: “We are very pleased to have agreed to acquire this high yielding portfolio of prime properties at a highly opportunistic time in the current cycle. The properties complement our existing portfolio and consolidate our presence in the St Petersburg market. This feels like the perfect time to acquire some exceptional, high yielding, assets at below replacement cost. The more deals we can find like this, the more we will do.”