Yesterday, it became known that British investment company Raven Russia Limited and RosEuroDevelopment (part of RosEuroGroup) signed a portfolio of documents, which provides grounds for the purchase by the foreign investor first stage of logistic park in Krekshino (20 kilometers off Moscow Beltway) and participation in financing of the park development. Raven Russia Limited bought the 33,000 square meters warehouse complex for at lest $110 million. In 2006 the complex should be increased to 120,000 square meters.

As Kommersant learned from Ivan Sitnikov, General Director of RosEuroDevelopment, it took two and half months to finalize the deal. Couple of days ago the sides finished signing 15 documents, according to which Raven Russia Limited becomes an owner of 33,000 square meters logistic park in Krekshino. Also, British company secured the right to participate in park development with a condition of forward financing (the first stage of the project is foreseeing the increase of the park size to 120,000 square meters), and it could become a purchaser of the first stage of the complex. The company said that the realization of the project should be finished by 2008, when the size of the warehouses will grow to 400,000 square meters. However, the contract does not provide Raven Russian Limited participation in management of the next stage of warehouse complex. The sum of purchase is not officially revealed. However, according to Kommersant information it should be not less than $110 million. RosEuroDevelopment is intending to reinvest this amount in similar company projects.

“Raven Russia Limited is public company,” Victor Malevankin, Senior Consultant of Capital markets of Russia and CIS at Knight Frank - consulting company Raven Russia Ltd., said. “This deal is a proof of increased trust to Russian real estate market. Such company would invest in the project if it foresees a stable profit.”

Malevankin refused to say approximate size of profits. However, taking into the consideration that warehouses of A-class (this is the rating for Krekshino logistic park) are being rented out for $110-$140 square meter, the profitability would be around $3 - $6 million per year just for the existing space. After the completion of the first stage minimal income would increase to $13 million.
by  www.kommersant.com