Raven Russia says warehouses full to the brim as demand soars

 
Kasmira Jefford
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A LONDON-listed property firm that supplies warehouse space for big blue-chip companies in Russia has seen earnings almost double in the last six months on the back of booming demand from fast-growing consumer firms.

Raven Russia, which owns around 12 huge warehouses around Moscow and St Petersburg yesterday reported a 97 per cent jump in underlying earnings after tax to $27.8m (£17.9m) in the six months to 30 June compared with the same time last year. Its portfolio is now almost fully let (97 per cent) to tenants such as Dixy and X5 – two of Russia’s biggest supermarket chains.

Raven Russia’s executive deputy chairman Anton Bilton and chief executive Glyn Hirsch founded and floated the business in 2005. Both were long-term players in the London property market but went in search of the higher yields Russian industrial property offered.

The average yield, or return, for investors is 11 per cent — almost double the rate in London.

Shares rose 6.5 per cent to 73p yesterday. However analysts at Singer said shares were still undervalued.

Hirsch told City A.M. Russia still had a negative perception among people but it was building investor interest “piece by piece”.