Varia US Properties plans capital increase*
Varia US Properties, which specializes in US residential real estate, intends to invest further and carry out a capital increase for this purpose. Around 1.8 million new shares are to be issued.
The Board of Directors of Varia US Properties intends to put an ordinary capital increase to the vote of shareholders at an Extraordinary General Meeting. As part of this, around 1.8 million new shares are to be subscribed by Bank Vontobel, which will act as agent in the transaction.** This would increase the company's share capital from currently around 7.2 million to up to around 9 million shares. The company intends to use the proceeds to take advantage of "promising investment opportunities" and further expand its portfolio in the USA.
The Extraordinary General Meeting, which will take place on December 8, will decide on the final number of new shares to be issued. Varia also intends to announce further information on the rights offering at that time.
Over the past two years, Varia has acquired around 8,000 residential units in 18 US states. The focus of further investments is on real estate with a focus on secondary and tertiary markets in growing suburban regions.
In addition, the Board of Directors is proposing to its shareholders that a cash dividend of CHF 2.10 be approved from the reserves from capital contributions. In relation to the total number of shares issued, this distribution corresponds to a reduction in reserves from capital contributions of around CHF 15.1 million.
*/** An earlier version of the news incorrectly stated that Vontobel would acquire a stake in Varia via the capital increase. In fact, however, the bank is merely acting as an agent in the transaction. (corrected on 24.11.2017, 8:30 a.m. - ah/IB editorial team)
