The subsidiaries of Raven Russia have entered into a conditional agreement for the acquisition of a portfolio of three commercial properties in St Petersburg, a completed warehouse and two office buildings from EPI Russia I Ky, a fund managed by Northern Horizon Capital. The total price of approximately €77m (RUR 4.9bn), subject to the satisfaction of certain escrow arrangements.
The portfolio is let to 68 tenants with leases expiring between 2017 and 2021, and is 98% 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. Main tenants include, Otis, Oracle, YIT, Schenker and Maersk.
With income for the next 12 months of approximately $13m US, the purchase price represents an initial US dollar yield of 16%.
Details of the properties:
- Gorigo Logistics Park – a logistics park of 87,000m² situated to the South West of St Petersburg, approximately 16km from the international airport
- Primium Business Centre – 11,000m² office building situated to the North West of St Petersburg and close to the new headquarters of Gazprom
- Kellerman Business Centre – 22,000m² office building in the Admiralty business district of central St Petersburg
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.”
