Raven Russia, the UK’s first quoted property company investing solely in Russian industrial property, is to forward-fund the development of a 2.4m sq ft (222,965 sq m) logistics warehouse in southern Russia

In joint venture with Russian logistics operator the Avalon Group, Raven has agreed to invest $166.6m (£87m) to develop the first of 14 logistics warehouses across Russia and the Commonwealth of Independent States.

The acquisition of the site in Rostov-on-Don - Russia’s fifth-largest city - is subject to permits and zoning.

A subsidiary of the Avalon Group, Avalon Logistics, will occupy 484,380 sq ft (45,000 sq m) at the scheme on a 10-year lease. The project is estimated to have an end value of $200m (£104.8m). The total cost of the project is expected to reflect a net yield of 15.5%.

The transaction brings the total estimated end value of Raven’s development portfolio to $781m (£409.5m).

It is expected to produce total net rental income of around $96.61m (£50.6m), reflecting a yield in the region of 14%.