Varia US Properties completes sale of Cardinal portfolio
Varia US Properties has completed the sale of the Cardinal portfolio in the USA, which was announced in October of this year.
On December 3, 2020, Varia US Properties AG completed the sale of the Cardinal portfolio (1,209 residential units spread across ten assets in Central and North Florida) acquired in December 2015. According to Varia, the implementation of the value creation strategy (including the conversion and renovation of residential units and increased occupancy) during the five-year holding period generated an internal rate of return (IRR) of 26% on the investment. Specific financial details of the transaction were not disclosed.
Patrick Richard, Delegate of the Varia Board of Directors, sees the fact that the company is able to achieve such a high internal net interest margin in a turbulent market like this year as proof of the success of the value enhancement strategy pursued; Richard is correspondingly confident for 2021.
The company also reports that rental income in November amounted to 100.6% of the rental income generated in March 2020, which in turn corresponds to 96.5% of the budget from the period before the outbreak of the Covid-19 pandemic. March is currently used as a benchmark in this particular period, according to Varia. The fact that rental income in November was almost at the same level as before the outbreak of the Covid-19 pandemic is proof of the portfolio's solidity and resilience. (bw)
