Varia sells US property at a high profit
Varia US Properties has sold the Pine Ridge residential property in Bremerton in the Seattle metropolitan area for $21.5 million. The company had acquired the property for 16.4 million.
Varia said the 116-unit condominium was purchased in March 2017 at a price of $16.4 million and was valued at $18.0 million in June 2018, according to Colliers International. At the 21.5 million sale price now achieved, the acquisition generated a net internal rate of return of 30.5 percent and returned 1.57 times the equity invested, it said. The sale represented earnings per share of $0.33.
Proceeds from the sale of Pine Ridge will be reinvested in another acquisition, Varia further discloses. This is reportedly a 272-unit residential property in Tucson, Arizona, with an expected average cash-on-cash yield of 10.4 percent over the next 10 years. This transaction is expected to close on Dec. 21, 2018, at a price of 21.0 million. (ah)
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