The Board of Raven Russia is pleased to announce that it has signed contracts to sell its Russian subsidiary, ZAO Kulon Estate ('RR Baltia') to Casebre Holdings Limited, a Cypriot registered company.
RR Baltia is the holding company for Raven Russia's warehouse property at Baltia, Moscow. The property comprises a grade A warehouse of approximately 28,000 m² of leasable area close to the Moscow orbital ring road. The property was acquired by the company in 2005 and has been fully let since that date, and generated net operating income of US $3 million (approx. 2.2 million) in 2009.
Cash consideration of US $42 million will be paid for the sale. Completion is expected in the final quarter of 2010.
The purchase price represents a premium of 48% over the company's December 31, 2009 valuation. After repaying the existing bank facilities secured on the property of US $22.3 million the sale will generate cash of US $19.7 million to the company.
Glyn Hirsch, Chief Executive said "This property has provided an excellent running cash return since acquisition in 2005. 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."
Source: Cardew Group