#USA #Amsterdam #Brookfield #SWI Group #Varia US Properties

SWI Group and Brookfield Create Strategic Partnership

In a notable development within the U.S. multifamily sector, Varia US Properties AG, a Swiss-listed investor, has sealed a strategic partnership with Brookfield Asset Management. The agreement encompasses 13 properties from Varia's 17-property portfolio in the United States, resulting in the formation of a joint venture valued at approximately USD 693.9 million. This partnership marks a significant step for Varia US, which is managed externally by Stoneweg under the umbrella of SWI Group.

The joint venture aims to access up to USD 200 million in equity capital, which will be utilized for future acquisitions. The goal is to bolster Varia’s portfolio, allowing it to pivot towards securing a higher-quality assemblage of residential properties. Specifically, Varia US plans to invest actively in the assets under this joint venture, enhancing their value before potential disposals. The proceeds from these disposals will be reinvested into acquiring higher-quality assets, thereby increasing liquidity and financial flexibility while minimizing the capital intensity associated with older properties.

According to Max-Herve George, the co-founder and CEO of SWI Group, collaborating with an institution as reputable as Brookfield signifies the high caliber of Varia US's assets and the overall strength of the platform. This partnership equips Varia US with the necessary support and flexibility to focus on high-quality residential communities, positioning it for substantial growth as the U.S. living sector increasingly prioritizes scale and strategic discipline.

Overview of the Assets

The joint venture comprises 13 assets, which together contain 4,112 residential units spread out across nine different states in the U.S. The total gross asset value for these properties is estimated to be around $694 million. Notably, Varia will maintain full ownership and control of four properties within the portfolio. This strategic division illustrates the company’s approach to ensuring robust management of its assets while taking advantage of new opportunities through the partnership with Brookfield.

About SWI Group

SWI Group consists of SWI Capital Holding Ltd, a prominent global investment entity listed on Euronext Amsterdam under the symbol SWICH. With diverse operations that span various sectors—including Data Centers, Real Estate, Credit, and Finance—SWI Group is driven by an entrepreneurial ethos. The firm employs thorough research methodologies and extensive local knowledge to maximize returns across its investment strategies. With approximately €11 billion in assets managed globally and a workforce of over 280 specialists in 26 offices, SWI Group is well positioned to leverage opportunities in the market.

About Varia US Properties AG

Founded in September 2015, Varia US Properties AG focuses exclusively on the multifamily sector in the United States, particularly in regions characterized by rapid population and employment growth. Their strategic approach involves acquiring, repositioning, and managing these properties to ensure stable rental income and long-term value creation for investors. Stoneweg SA, based in Geneva, serves as the asset manager for Varia US, ensuring that their investment decisions align with market trends and opportunities.

Overall, the partnership between SWI Group and Brookfield not only augments Varia US Properties AG's portfolio but also strategically positions the company to thrive amid the evolving dynamics of the U.S. multifamily landscape.