RAV.L Regulatory News (RAV)

28 February 2011 

RAVEN RUSSIA LIMITED (the "Company")

Acquisition

Raven Russia Limited has today signed a conditional Sale and Purchase Agreement to purchase Karta Realty Limited, the ultimate owner of the Southgate warehouse project in the Domodedovo district of Southern Moscow, close to the international airport.

The Southgate project comprises a completed Grade A warehouse complex of 76,550 square metres, currently 88% let to John Deere, and 88 hectares of permitted land capable of producing a further 440,000 square metres of completed logistics space once fully developed.

Karta Realty Limited is majority owned by two limited partnerships, one registered in Delaware and the other in England and Wales, managed by Cypress Grove International ("CGI"). CGI have been advised by Renaissance Capital.

The purchase price for the acquisition is $54.5 million, the gross value of property and land being $99.3million. Existing debt facilities of approximately $43.5 million with Unicredit will be acquired with the Group. The facilities are for a 5 year term from December 2006 with a margin of 650 basis points over US Libor. Terms to roll over the facility for a further 5 years have been agreed with Unicredit, reducing the margin to 430 basis points over US Libor on meeting letting criteria.

The purchase price implies an ERV yield of 13.7% on the completed property and a capital value of $840 per square metre. Net operating income on the let space generates $6.4 million per annum.

Consideration will be satisfied by the issue of up to 25.9 million ordinary shares in Raven Russia Limited (at the election of selling shareholders) and the balance in cash. The purchaser has agreed certain share sale restrictions.

The principal condition of the acquisition involves the right of a minority shareholder group to match any formal offer for Karta Realty Limited made by a third party. If this right to match is exercised within 30 business days after the signing of this Sale and Purchase Agreement then CGI will be obliged to sell Karta Realty Limited to the minority shareholder group.

Raven Russia limited will be announcing its results for the year to 31 December 2010 on 14 March 2011.

Glyn Hirsch Chief Executive Officer said

"This potential acquisition consolidates our position as the major owner and supplier of Grade A Logistics Warehouse space in Moscow. Coupled with our existing Moscow permitted land holdings we now have the ability to bring almost 500,000 square metres of completed space into the currently tightly supplied market".

Enquiries

Raven Russia Limited Tel: + 44 (0) 1481 712955

Anton Bilton

Glyn Hirsch

Cardew Group Tel: + 44 (0) 207 930 0777

Tim Robertson

Catherine Maitland

Singer Capital Markets Limited (NOMAD) Tel: +44 (0) 203 205 7500

Corporate Finance- James Maxwell

Sales - Alan Geeves / James Waterlow