Varia US Properties (VARN) closed on 14 December 2018 the sale of Pine Ridge, a 116 unit property located in Bremerton, in the Seattle Metropolitan Area for an amount of USD 21.5 million.
This property was bought in March 2017 for a purchase price of USD 16.4 million and valued in the book of the Company in June 2018 for USD 18.0 million, according to Colliers International’s appraisal. The successful implementation of the value-add strategy and a positive market converted this acquisition into a 30.5% net IRR with a 1.57 equity multiplyer. The sale represent a gain per share of USD 0.33, which will be part of the 2019 planned CHF 2.50 distribution to investors.
Patrick Richard, head of US investments, stated that “the work done at this property, both in the units and in the common areas, improved the net operating income sufficiently to justify a considerable increase of the property value. With that sale, the Company is able to crystalize a significant gain that will benefit the investors”.
Last acquisition for 2018
The proceed of this sale will be reinvested into a last acquisition to be made this year. It is a 272 unit property located in Tucson, Arizona with an anticipated average cash on cash return over the next 10 years of 10.4%. This operation will be closed on Friday, 21 December 2018 for a price of USD 21.0 million.