• Property investment company incorporated in 2005 to invest in the Russian real estate market with an initial focus on the Warehouse market in the Moscow and St Petersburg regions. The Company was admitted to AIM at that time and raised £153 million with a further £310 million in April 2006.
  • The Company's completed investment portfolio now comprises 390,500 sq.m. at different sites in Moscow and St Petersburg. The group has leased 88% of the 364,000 square metres of warehouse space it developed in 2008. Net rental income for the year was $51.9m, and the average lease length is just under six years. By the summer, Raven will have completed a further 100,000 square metres of warehouse space, and  there is a further $24.9 million pre lease agreements in place.
  • The Company holds an additional 463.5ha of land in Kiev and regional cities of Russia that has longer term potential. At the current time, it does not envisage any speculative development on these sites.
  • Latest results - http://www.stockopedia.com/news/announcement/RUS/090326rus5045p.htm - reported a loss for full-year 2008, reflecting higher operating costs and impairment charge from property under construction, and reported a decline in net asset value. There was a $108m (£74m) writedown to the Russian warehouse portfolio, a currency hit as sterling and the rouble both weakened against the dollar and land and development projects were written down by a further $39m. Total loss before tax was $189.4 million compared to profit of $115.5 million in the prior year.
  • Looking ahead, in view of the difficult economic conditions, Raven Russia said that it aims on maintaining cash flow from its investment properties and development portfolio for the next 12 months.

The bull case is essentially one of limited supply and growing demand - "Compared to other European countries Russia still has a deficit of supply on a per capita basis. This and the difficulty in securing and developing large scale land plots in and around the major Russian cities is likely to limit supply in the future. Very little new development is planned to start this year improving the prospects for a stable market during the end of 2009 and into 2010".

But I am not sure that I am brave enough for this one!


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