Raven Russia Logistics Novosibirsk

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The proposed project consists of a senior loan and subordinated loan facility to a Special Purpose Company (SPC), 50% owned indirectly by Raven Russia Limited and 50% owned indirectly by Avalon Equity Limited. The SPC will be established to develop, construct and operate a Class A energy efficient logistics park with a total gross leasable area of 121,000 sq. m. on a 17.85 ha green-field site located in Novosibirsk (the “Project”). The Project is being funded in parallel with a senior and subordinated loan facility from the International Finance Corporation (IFC). The Project addresses the severe shortage of warehouse space in Novosibirsk which is dominated by outdated Soviet style warehouse facilities. It forms part of “Megalogix”, a programme to create an integrated regional warehouse network across 21 regional cities in Russia and the CIS Logopark Ob offers four times more space than the total current logistics space of equivalent quality (presently 26,000 sq. m. or 4% of the total logistics market). Additionally, much of the existing quality space is owner-occupied and hence not available to rent. The Project’s combination of high-quality, rentable space thus represents an expansion of modern logistics facilities and practice into this region of Russia. The Project will also make a positive contribution to the global commodity distribution network of Euro-Asian and pan-European transportation corridors. The Project will set a benchmark for future developments of modern warehouse/logistics properties not only in Novosibirsk but also in other cities along Russia’s expanding transport corridors, because it offers high international standards in design and energy efficiency and its business model is focused around long-term tenants. The development model, design and tenancy concept can be replicated in the Novosibirsk region and elsewhere in regional Russia with positive transition impact. The space added by this Project will also create a more competitive environment in the high-quality logistics market, which currently comprises only 4% of the total logistics market and is provided by less than three players. The Project under development is part of a joint venture between Raven Russia Limited and Avalon Equity (Overseas) Limited, whose intention it is to construct a network of integrated logistics facilities across Russia and CIS under the brand name Megalogix. Both parties own a 50 percent share in the venture. Raven Russia Limited (the Project Sponsor), a Guernsey registered company listed on AIM exchange (London), is a permanent capital company focused on long term investment in warehousing and logistics real estate that develops and owns properties in Russia and CIS. www.ravenrussia.com. Avalon Equity (Overseas) Ltd. is a Guernsey registered company and part of the larger Avalon Group, whose principal activity is Fast Moving Consumer Goods Distribution in Russia. The facility consists of a Senior Loan in the amount of USD 35 million and a USD subordinated loan in the amount of USD 5 million. USD 160.4 million. An environmental impact assessment (EIA) study, including identification of specific measures for preventing and/or mitigation negative impacts and compensation for environmental disturbance and damage, is being executed by both the EBRD and the IFC. There are likely to be few, if any significant environmental issues associated with this operation. The Sponsor has presented its plans to mitigate the project’s environmental and social impacts and risks and an Environmental and Social Action Plan (ESAP) has been developed. When implemented by the Sponsor, these measures should ensure the Project’s compliance with the environmental and social requirements of national laws and regulations and EBRD and IFC’s Environment and Social Performance Standards. None. Toby Selman Head of Structured Finance Raven Russia Tel: +44 7920 846595 E-mail: tselman@rrpfm.com