Varia US Properties plans IPO
Varia US Properties AG, based in Zug, wants to increase its share capital and therefore plans to list its shares on the SIX Swiss Exchange.
The real estate company Varia invests exclusively in multifamily properties in the USA with a focus on the secondary and tertiary markets. The portfolio includes 39 properties with approximately 5,000 apartment units in 14 U.S. states and was valued at $301 million by Colliers International as of June 30, 2016. The residential units target middle- to lower-income segments and are located in metropolitan markets with stable employment and continued population growth, Varia reports.
Varia's total income for the accounting period ended June 30, 2016 was $18.9 million (excluding earnings contributions from fair value adjustments) and operating income was $4.5 million, also excluding earnings contributions from fair value adjustments.
The planned IPO is expected to consist exclusively of a primary share capital component, Varia says. The new shares to be issued will be offered to existing shareholders and to the open market. No exact date is given, but Varia expects the IPO to take place in the coming months, depending on market conditions.
Further acquisitions planned
The proceeds are to be used for the acquisition of further properties in the target markets and regions, for the reduction of corporate debt and for general business purposes.
Varia pursues a three-part investment strategy. The company acquires properties whose value is enhanced through rehabilitation, renovation and other operational measures in order to realize increased rental income potential at limited incremental cost and achieve capital appreciation. In addition, Varia invests in residential properties that qualify for the Low Income Housing Tax Credit (LIHTC). Varia intends to generate attractive rental income and, once the properties in question are no longer subject to the rent-controlled market, to realize appreciation in the value of these properties. Finally, Varia invests selectively in stabilized properties with limited optimization potential. The external asset manager is Stoneweg SA.
Manuel Leuthold, Beat Schwab and Patrick Richard become members of the Board of Directors
Varia's Board of Directors consists of Jaume Sabater Martos, Chairman, Founding Partner and CEO of Stoneweg, Taner Alicehic, Founder and CEO of Real Estate Investment Solutions SA, Dany Roizman, Founder and CEO of Brainvest Wealth Management, and Alexandre Leviant, President of ICD Group.
The Extraordinary General Meeting on November 14, 2016 will also be attended by Manuel Leuthold, Chairman of the Board of Directors of the AHV, IV and EO compensation funds, Dr. Beat Schwab, currently global head of Real Estate Investment Management at Credit Suisse and member of the Board of Directors of Zug Estates Holding and SBB, and Patrick Richard, co-founder and Chairman of Procimmo and Head of US Investments at Stoneweg, for election to the Board of Directors. (ah)
