Varia US Properties divests real estate
U.S. residential real estate investor Varia US Properties is selling its Cardinal portfolio in Florida and its Stonegate property in Colorado.
According to Varia US Properties AG, the two buyers have completed their respective due diligence and paid the down payment. The transactions are expected to close by early December 2020.
The Cardinal portfolio includes 1,209 units, according to the company; they are single-story manufactured homes in tertiary markets in Florida. The portfolio was acquired in December 2015. The Stonegate property was purchased by Varia in January 2016; it has 55 low-income housing tax credit (LIHTC) units and is located in Pueblo, Colorado.
The properties no longer fit Varia's investment strategy, the company said. It is focusing on larger properties that are closer to major metropolitan areas and have an institutional rating, it said.
Varia expects a net exit price approximately 10% higher than the estimated value of the properties as of June 30, 2020. Gross internal rate of return is expected to be more than 25%. The company intends to reinvest the proceeds from the sales. (ah)
