An opportune acquisition

Raven has announced the conditional acquisition of three properties in St Petersburg for RUB4.9bn (c $82m), below their replacement cost, which will generate rent of $13m in the first year of ownership (c 16% initial yield). The acquisition will be funded from existing cash reserves and is expected to be complete by the end of February. We maintain our previous forecasts pending the completion of the acquisition and the publication of Raven’s FY16 results on 13 March 2017.