Varia US Properties sold for USD 200 million in Q2
Varia, which focuses on US real estate, has sold non-strategic assets. It intends to reduce its debt during the downturn and concentrate on better locations.
Zug-based Varia US Properties sold eight buildings for USD 200 million in the second quarter. Despite the pressure on real estate values, the non-strategic assets were sold at around or above the most recent book price. The gross internal rate of return (IRR) of the transaction was 20.2%. The proceeds after mortgage repayments and selling costs are earmarked for future capex expenses as well as for the repayment of the VAR19 corporate bond, which expires on June 20, 2023, and also for higher interest payments on floating rate debt. A decision on the use of the remaining funds will be made at a later date.
Varia intends to continue to sell non-strategic assets and buy in better locations and newer properties. As of mid-2023, the portfolio comprised 33 properties with 9,170 units, according to the press release. Together with asset manager Stoneweg, the decision was made to reduce leverage during the downturn and focus on properties with "institutional quality". (aw)
