Brookfield Asset Management is recapitalising a $694m (€601.5m) portfolio of 13 US multifamily properties owned by Swiss-listed investor Varia US Properties through a new partnership.
As part of the deal, Brookfield is taking a 90% stake in four of the properties, which have a gross asset value (GAV) of around $178m, and may provide up to $200m of additional equity capital to fund future acquisitions, with Varia US retaining a 10% equity interest.
The firm will also take a 40% stake in the remaining nine assets, which have a GAV of approximately $516m, alongside Varia US retaining a 60% equity interest.
Stoneweg-managed Varia US, which retains four other assets in the US, said it expects to sell two of those properties within 12 months following the completion of asset management programmes.
Manuel Leuthold, chairman of the board of directors of Varia US Properties, said: “This transaction is a strong reflection of the quality of our portfolio and our team’s execution. We are pleased to be partnering with Brookfield, a globally recognised firm with a strong track record in real estate.
“This transaction allows us to materially improve our balance sheet, crystallise meaningful value for shareholders and retain participation in the future upside of the assets we know best.“
Mark McLaughlin, real assets CEO at Stoneweg, said: “Our global living sector assets under management today totals over €2bn, reflecting our high conviction that the compelling drivers underpinning its resilience, including affordability constraints, demographic shifts and tight supply, will endure.
Strategic partnerships with sophisticated, blue-chip institutions such as Brookfield provide the capital that will enable us to take advantage of market dislocation and deliver on our growth ambitions.”
To read the latest IPE Real Assets magazine click here.
