Varia US Properties (the “Company”) announces today that it reached an agreement with Peak
Capital Partners to buy out the interests of Peak Capital Partners and its affiliates in the
Company’s portfolio, which are accounted for as non-controlling interests in its financial
According to the agreement, the non-controlling interest holders will receive assets of the portfolio
up to their net equity participation, which will be calculated based on the appraisals of December
31, 2017 prepared by Colliers. Based on the valuations of the 30 June 2017, this participation is
estimated to amount to approximately USD 22.4 million. The preliminary allocation of properties
will be done through a defined selection process that will be initiated promptly based on interim
calculations. The preliminary allocation of properties is expected to be completed by the end of
December 2017. Once the year end valuations are available, the calculations and property
allocation process will be finalized. The economic transfer will take place on January 1, 2018, i.e.
based on the agreed allocation of properties, the respective parties will be treated as 100%
owners for economic purposes of the respective properties.
This transaction will grant the Company with 100% ownership on its remaining portfolio and it will
liquidate the non-controlling interest position both in the Company’s statements of financial
position and statements of profit or loss and other comprehensive income. The closing of this
transaction will have a corresponding impact on the Company’s total assets, total liabilities and
Jaume Sabater, Vice Chairman of the Company and CEO of Stoneweg SA, the asset manager
of the Company, comments: “This transaction arrives at the best time, when Stoneweg has hired
the necessary resources to take over the full asset management of this part of the portfolio. We
expect greater efficiency in the management of Varia’s total portfolio as well as a consolidation
of the returns”.
The transaction is subject to the approval of the lenders and of the housing authorities where
applicable. It is expected that most approvals will be granted in the first quarter of 2018 and the
majority of the properties will be transferred subsequently; the transfer of the last few properties
is expected to only occur in September 2018.
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