Varia: Acquisition of the minority shares of Peak Capital
Swiss-listed Varia US Properties AG has reached an agreement to acquire the shares of Peak Capital Partners and its subsidiaries in the company's portfolio.
According to the agreement, the minority shareholders will receive assets from the portfolio up to their equity participation. These are calculated based on the December 31, 2017 valuations by Colliers. Based on June 30, 2017 valuations, this equity interest is estimated to be approximately $22.4 million. "The preliminary allocation of properties will be made using a defined selection process that will be initiated quickly based on interim calculations," Varia US Properties shared. The preliminary allocation of properties is expected to be completed by the end of December 2017.
As soon as the year-end valuations are available, the calculations and allocation of the properties will be completed, the statement continues. The economic transfer will take place on January 1, 2018, it said. As a result, the respective parties will be treated as the 100% beneficial owners of the respective properties in accordance with the agreed allocation of the properties. As a result of this transaction, the Company will obtain 100% beneficial ownership of its remaining portfolio. The minority interest position in both the statement of financial position and the statement of profit or loss and other comprehensive income of the Company will be reversed. The closing of this transaction will have a corresponding impact on the total assets, total liabilities and total income of Varia US Properties.
As Jaume Sabater, vice chairman of the company and CEO of Stoneweg SA, the company's asset manager, explained on the occasion of the agreement concluded between Varia and Peak Capital, it is expected to "bring greater efficiency in the management of Varia's overall portfolio, as well as consolidation of revenues." The transaction is subject to lender and housing ministry approvals, as applicable. Most approvals are expected to be granted in the first quarter of 2018, with the majority of the properties subsequently transferred. The transfer of the final properties is expected to occur in September 2018.
