Guernsey-based firm to divest itself of Russian property portfolio assets
A GUERNSEY-headquartered company with a Russian property portfolio has announced plans to divest itself of its assets in the country.
Raven Property Group’s board said it was ‘deeply saddened by the events in Ukraine and sincerely hopes for a peaceful resolution as soon as possible’.
Without explicitly referring to the Russian invasion, the company said the events which began on 24 February, and the subsequent impact of sanctions had made it ‘impracticable’ for the business to continue in its current form.
‘In a short timeframe of just two weeks, the impact of the actions of Russia on Ukraine has completely compromised the company’s business model and its ability to assess its current financial position and ability to inform the market accordingly,’ it said.
It has agreed to divest, for a nominal consideration, its Russian business to a Cypriot company which will be owned and controlled by Raven’s Russian management team. The company has also advised the London Stock Exchange that intends to cancel its listing on the LSE after 17 years.
‘The board believes this to be the most effective way to meet any further sanction and counter sanction requirements,’ the company said. Its directors have supported all the moves proposed.
The company specialises in leasing Russian warehouses and commercial real estate to local and international businesses. It is reported to be one of the largest owners of logistics real estate in the Moscow region, St Petersburg, Rostov-on-Don and Novosibirsk.
The latest available figures valued the company’s property holdings at £1.2bn and as of June last year its net operating income stood at £52m.
Trading of the business’s ordinary and preference shares was suspended on the LSE at the company’s request following the invasion of Ukraine and subsequent sanctions on Russian activities, which had severely limited its ability to access funds from its Russian subsidiaries. Similar suspensions of listings on The International Stock Exchange, which is headquartered in Guernsey, the Johannesburg Stock Exchange and the Moscow Stock Exchange would also apply. Raven Property said it would look to cancel secondary listings on these exchanges as well.
‘The company has discussed the de-listings in detail with its major shareholders and expects their support at the relevant meetings,’ it added.
