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. Last Updated: 07/27/2016

Warehouse Complex Attracts $110M in Foreign Investment

Real estate fund Raven Russia has bought the first stage of the Krekshino warehouse complex from RosEvroDevelopment for $110 million.

Located 24 kilometers from the Moscow Ring Road between Minskoye Shosse and Kievskoye Shosse, Krekshino will cover 300,000 square meters when complete.

Andrei Podgorny, RosEvroDevelopment's commercial director, said Raven Russia bought the first, 115,000-square-meter phase of the complex, of which 30,000 square meters was ready and the remainder was still under construction.

Under the agreement, RosEvroDevelopment is required to complete and lease the space, after which Raven Russia takes over as full owner of the business.

The purchase -- worth $110 million, according to a Raven Russia statement -- is the company's second deal in Russia. In the spring, Raven Russia bought out the Kulon-Baltia and Kulon warehouse terminals for $18.6 million.

Viktor Malevankin, senior consultant for capital markets in Russia and the CIS at Knight Frank, which worked as a consultant on the Krekshino purchase, said it was the largest commercial real estate investment deal involving a foreign investment fund.

A Raven Russia representative said earlier that the fund planned to invest about ?500 million ($800 million) in Russian real estate. Part of the funds came from a initial public offering on the London Stock Exchange in July, when the company placed about 30 percent of its shares for ?153 million. The rest of the money was from bank loans.

Registered in Britain, Raven Russia is run by Raven Property Management, a part of the Raven Group, which has a listing on the London Stock Exchange's AIM index. Raven Group's earnings in 2004 were ?83 million.

RosEvroDevelopment, part of the Rosevrogroup consortium, has built three warehouse complexes in the Moscow region and is currently completing the Krekshino terminal.