Varia US Properties AG announced today that it has already closed its first three transactions after the capital increase of December 2016 in a continuous effort to deploy the new equity of CHF 127.7 million. Varia expects the full deployment of the net IPO proceeds by the end of June, at the latest.
Varia closed the first transaction after the capital increase and corresponding share offering to existing and new shareholders on 29 December 2016. The property is called ‘Wood Hollow’ and is located close to the Dallas Fort Worth airport and next door to the planned new headquarters of American Airlines. It comprises 346 units and fits ideally in Varia’s investment focus targeting medium and low income markets with stable employment and population growth in metropolitan regions. The acquisition price amounted to USD 28.7 million.
Furthermore, Varia closed two other transactions at the beginning of February. The property ‘Crowne Lake’ is located in Columbia (South Carolina) and contains 272 units. The closing took place on 7 February and the acquisition price amounted to USD 23.6 million. ‘The Ridge on Spring Valley’ (Dallas) was closed on 9 February and amounted to USD 18.3 million. It comprises 208 units.
Five other deals are currently under contract for a total acquisition cost close to USD 84.2 million. These properties are located in Missouri (St Louis), Indiana (Evansville), Washington State (Bremerton – Seattle) and Texas (Dallas Fort Worth area). Varia takes advantage of attractive acquisition opportunities offering promising return perspectives to the Company’s shareholders. All projects are in line with Varia’s strategy focusing on 2nd and 3rd tier properties in secondary and tertiary markets. The Company expects having fully deployed newly raised capital by 30 June 2017 at the latest.
Varia at the NMHC Annual Meeting in San Diego
Varia continues to identify interesting acquisition opportunities. From 24 – 27 January 2017, the Company’s key representatives attended the National Multifamily Housing Council (NMHC) Annual Meeting in San Diego (www.nmhc.org). It represents the most important industry event in North America and offered Varia an excellent platform to foster its strong anchoring and position in the US market and to meet with key lenders, brokers and other important business partners.