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Varia US and Brookfield form $694M multifamily joint venture
The deal includes up to $200M in equity for new acquisitions and calls for Brookfield to sell nine buildings over the next three years.
Varia US Properties AG is partnering with Brookfield Asset Management to target higher-quality U.S. multifamily properties through a new $694M joint venture, Bisnow reports. The venture will reposition a 13-property multifamily portfolio and is designed to support future acquisitions with additional funding.
The 13 properties cover 4,112 units across nine states. Under the structure described in the announcement, Brookfield will own 90% of a $178.4M four-building portfolio, while Varia will hold the remaining 10% and continue managing the properties.
The other nine buildings are bundled into a $515M, 3,052-unit portfolio where Brookfield will own 40% of the equity. Those buildings are expected to be sold over the next three years, while Varia will retain full ownership of four other multifamily properties, two of which it plans to sell.
Varia US is set to receive $48.9M in cash when the deal closes, which is expected in the fourth quarter. The joint venture also provides access to up to $200M in equity to fund new acquisitions, aligning with Varia US strategy to dispose of older properties and use proceeds to buy higher-quality communities.