Raven Mount has undertaken a restructure which will see its Russian property fund manage itself.

The AIM-listed property investor and fund manager has sold its Russian property fund management businesses to Raven Russia, the AIM-listed fund it manages.

Raven Mount executive chairman Anton Bilton and executive deputy chairman Glyn Hirsch will join the board of Raven Russia, with the former devoting 60% of his time to Raven Russia.

Internal affairs

This changes the structure of Raven Russia, and means from now on it will be internally managed, rather than paying fees to Raven Mount.

The move is designed to increase the share price, as investors and analysts have criticised the structuring of AIM-listed property funds, most of which are externally managed, with the manager taking a fee. The interests of the fund and its investors are seen as better aligned if the fund is internally managed.

New company

Raven Russia has paid £83.4m for Raven Russia Property Fund Management. This is made up of £15m cash and 80m new Raven Russia shares.

As a result of the change, Raven Mount will delist from AIM, and applying for a relisting under the name New Raven Mount. 64m of the shares paid out will be distributed to New Raven Mount shares holders, and 16m will be retained by New Raven Mount, along with the £15m.

Raven Mount shares rose 23% to 78p, while Raven Russia shares remained flat.

Raven Mount said that its ongoing activities would include its Audley brand, a Cotswold residential and second home developer, but it could sell this once the restructure was complete.