Raven Russia (AIM: RUS), the Guernsey registered AIM listed property investment company focussed on warehouses in Russia, announces that it has completed and let approximately 70% of the 50,000-m² first phase of its 200,000-m² logistics development at Istra, Moscow.
The Company has let 34,140 m² of the first phase to Interleasing, a Russian logistics operator specializing in the pharmaceuticals sector, at an annual rent of $4.31 million equating to $126 per m² (around 9% ahead of the budgeted rent).
A Letter of Intent (LOI) has also been signed with another party for letting the remainder of the phase totalling 15,800 m² and the Company anticipates signing a lease within the next month.
The second phase of the development totalling 50,000 m² is due for completion in April 2008. A LOI has been signed for the whole of this phase, and the Company expects to sign an agreement to lease before construction is completed.
Raven Russia has also commenced construction of the third phase of 50,000 m², with completion expected in Q4 2008. It is anticipated that the final 50,000-m² phase of the development will be completed in Q2 2009. Following the signing of these agreements on the initial phases, the Company remains confident of achieving its targeted yield on cost of 12% of the whole project.
Raven Russia has a total of over $2 billion invested or committed to existing projects.
Richard Jewson, Chairman of Raven Russia, said: "Phase 1 of our Istra project is another example of our team's ability to deliver developments on time and budget. With rental levels achieved above our expectations, and with a tenant close to signing on the second phase, which is also advancing well, we are very pleased with progress to date. Overall, this not only underlines the strength of demand in the logistics sector in Russia but confirms our business strategy."