- Published on December 18th, 2017
Varia US Properties , whose asset manager is Stoneweg, announces today that it reached an agreement with Peak Capital Partners to buy out the interests of Peak Capital Partners and its affiliates in the Company’s portfolio, which are accounted for as non-controlling interests in its financial statements.
According to the agreement, the non-controlling interest holders will receive assets of the portfolio up to their net equity participation, which will be calculated based on the appraisals of December 31, 2017 prepared by Colliers. Based on the valuations of the 30 June 2017, this participation is estimated to amount to approximately USD 22.4 million. The preliminary allocation of properties will be done through a defined selection process that will be initiated promptly based on interim calculations. The preliminary allocation of properties is expected to be completed by the end of December 2017. Once the year end valuations are available, the calculations and property allocation process will be finalized. The economic transfer will take place on January 1, 2018, i.e. based on the agreed allocation of properties, the respective parties will be treated as 100% owners for economic purposes of the respective properties.
This transaction will grant the Varia US Properties with 100% ownership on its remaining portfolio and it will liquidate the non-controlling interest position both in Varia US Properties’ statements of financial position and statements of profit or loss and other comprehensive income. The closing of this transaction will have a corresponding impact on the Varia’s total assets, total liabilities and total income.
Jaume Sabater, Vice Chairman of the Varia US Properties and CEO of Stoneweg SA, the asset manager of the Varia US Properties, comments: “This transaction arrives at the best time, when Stoneweg has hired the necessary resources to take over the full asset management of this part of the portfolio. We expect greater efficiency in the management of Varia’s total portfolio as well as a consolidation of the returns”.
See Varia US Properties media release here
Varia US Properties intends to increase its share capital to exploit further growth opportunities – no significant property damage due to Hurricane IrmaPublished on September 13th, 2017
Varia US Properties, whose asset manager is Stoneweg, announced today the intention to increase its share capital with two consecutive transactions in order to further enhance its portfolio and to benefit from the strong investors’ demand for appeling real estate investments.
In a first step, the Company intends to offer newly issued registered shares based on Article 2.3 of the Articles of Association of the Company, which authorizes the Board of Directors to increase the share capital at any time until November 13, 2018, by issuance of a maximum of 665,871 registered shares at market price. Currently, the Company expects this transaction to be completed by the beginning of October, and anticipates generating proceeds of approx. CHF 20 million in cash from a new anchor investor.
Subsequently, the Board of Directors of Varia US Properties intends to ask shareholders to vote on an ordinary capital increase with the participation from existing and new institutional and private investors by means of rights offering. Further details – like the number of shares newly issued, subscription price, subscription period, and subscription ratio for existing shareholders – will be communicated with the invitation to the required extraordinary Shareholder Meeting in Q4 2017.
Varia US Properties AG has historically a large exposure in Florida and the local property management companies have been very active last week and over the week-end to make sure tenants were safe and assets protected as much as possible against high winds and possible floods during the storm.
Due to its enormous size, Irma affected the whole State of Florida. However, the Company is able to report, at the best of its current knowledge, that it sustained no injury to tenants or staff, nor significant damage to the properties.
The Company is well insured against any property damage and liability claim, but none should be needed for this storm.
See Varia US Properties media release here
Varia US Properties increases total income and gross potential income significantly – half-year net profit boosted to USD 15.0 millionPublished on September 4th, 2017
Varia US Properties, whose asset manager is Stoneweg, announces strong half year 2017 results.
The resulting portfolio, as of 30 June 2017, consisted of 47 properties totalizing 7,289 units, representing USD 508.1 million of real estate value. The occupancy rate stood at 95.3%. In the first six months 2017, the portfolio generated a rental income of USD 26.2 million, compared to USD 17.4 million during the period from 28 September 2015 through 30 June 2016, and a total income of 43.3 million (previous year USD 33.0 million). The gross potential income as of 30 June 2017 increased to up to USD 71.1 million.
The net gain from fair value adjustment on investment property amounted to USD 14.9 million and reflects the execution of the value-add strategy of Varia US Properties.
Total operating expenses were USD 18.2 million (previous year USD 19.8 million), which results in an operating profit of USD 25.1 million (previous year USD 13.2 million). After deduction of the finance cost and the income tax provision, the profit for the period is USD 15.0 million (previous year USD 6.5 million), of which USD 12.2 million (previous year USD 2.9 million) are attributable to Varia.
With regard to the realized operating results, the effective gross income is USD 28.4 million and the total operating expenses is USD 14.9 million which give a net operating income of USD 13.5 million.
See Varia US Properties half year 2017 results media release here
- Published on July 28th, 2017
The Spanish economy accelerated at the fastest pace in almost two years, extending a recovery that shows no signs of abating.
Output grew 0.9 percent in the three months through June after expanding 0.8 percent in the previous quarter, the National Statistics Office said Friday in a preliminary report. That’s the best reading since 2015 and matches the median estimate in a Bloomberg survey of economists. From a year ago, the economy accelerated 3.1 percent.
While market consensus initially pointed to a slowdown this year, the Spanish economy continued to outperform its euro-area peers. Renewed momentum has prompted string of GDP revisions from the International Monetary Fund, which now sees growth of 3.1 percent for 2017 compared to a previous estimate of 2.6 percent, and the Spanish government of Mariano Rajoy, which forecasts growth of 3 percent instead.
That prediction is still too conservative according to economists at Banco Bilbao Vizcaya Argentaria SA and Bankia SA, who believe this will be the best year for the Spanish economy in a decade with output expanding 3.3 percent. The prospects of a continued recovery coupled with further budget consolidation has prompted S&P Global Ratings and Fitch Ratings to upgrade their outlook on Spain’s credit rating to positive from stable, hinting at a possible hike in the second half of the year.
While Friday’s report didn’t break down components of GDP, economists say growth probably benefited from accelerating household consumption fueled by strong job creation, resilient exports and a pick up in services linked to tourism. Visitor numbers are on track to post yet another record year despite concern that Brexit will reduce the number of U.K. tourists.
“Household consumption has rebounded and that’s going to manifest in the quarterly data,” Miguel Cardoso, chief Spain economist at BBVA in Madrid said before the data were released. “Exports are still strong despite coming off from a high point and the tourism sector is very dynamic, that’s having a positive impact on services.”
The latest health-check on the Spanish economy comes on the back of Thursday’s second-quarter unemployment report, which saw the nation’s jobless rate fall to the lowest level in eight years. Retail sales data in June pointing to renewed impetus from consumers after spending lost some ground at the start of the year.
Source: Bloomberg Markets
- Published on May 23rd, 2017
Varia US Properties generated strong operating results for the first quarter 2017. The net cash flow Q1 yield stood at 11.2%, up from 8.4% in Q4 2016. The distribution yield at property level increased to 9.5% (Q1’17) from 8.7% (Q4’16). Effective gross income (EGI) reached USD 12.7 million, a USD 2.3 million increase from Q4 2016. This was the combination of the fast rental growth, the stability in vacancy and new acquisitions. Total operating expenses as percentage of EGI dropped from 50% in Q4 2016 to 44.6% in Q1 2017, which in turn increased the net operating income from USD 5.2 million in Q4 2016 to USD 7.0 million in Q1 2017. As a result, the total net cash flow stood at USD 3.4 million, an increase of 79% from Q4 2016. Gross potential rate improved by nearly 20% to USD 12.5 million.
- Published on April 11th, 2017
Data from Idealista SA, Spain’s biggest property website, showed Barcelona home prices cruising ahead of the pack in Q1 2016, with nearly 19% growth.
Home prices now stand at 4100 € per square meter in the catalonian capital, compared to 2900 € p. sqm in Madrid.
Source: Bloomberg Markets
- Published on January 15th, 2017
Stoneweg is glad to take part in the Immo ’17 fair in Zurich on February 1-2.
Immo ’17 is the main meeting point in Switzerland for real estate investment specialists, and is part of the larger Finanz ’17 fair, held together in the Zurich Kongresshaus.
This is Stoneweg’s first participation in a real estate fair in Switzerland and it will be the opportunity to reflect on its already rich track record built over the last 18 months, and to share views with other real estate asset managers and investors.
Come visit the Stoneweg booth!
Location: Kongresshaus Zurich. 1-2 February, 10h – 18h.
- Published on December 8th, 2016
Varia US Properties AG, a real estate company whose asset manager is Stoneweg, listed today its share on SIX Swiss Exchange following its initial public offering (“IPO”).
Domiciled in Zug, Switzerland, Varia US Properties invests exclusively investing in U.S. multifamily housing with a main focus on secondary and tertiary markets.
Overall, a total of 3,097,074 offered shares have been issued at the offer price of CHF 35. Assuming the over-allotment option of up to 464,562 shares will be exercised in full, the Company shall issue a total of 3,561,636 new registered shares, corresponding to an issuance and placement volume of CHF 124.7 million and implying a market capitalization for Varia US Properties of CHF 233.1 million.
- Published on October 31st, 2016
Spanish unemployment rate fell to the lowest since the last quarter of 2009 thanks to a surge in service jobs, the National Statistics Institute said on October 27th. It now stands at 18.9 percent, down from 20 percent in the second quarter, and beating estimates by 4 basis points. Among the Spanish Regions, Catalonia added the most jobs. Half of the assets managed by Stoneweg are located there.
Still the second-highest in the EU after Greece, Spain’s rate has been falling at a steady pace since its 2013 peak of 27 percent, on the back of a strong economic rebound.
- Published on October 26th, 2016
Varia US Properties, a real estate investment company whose asset manager is Stoneweg, has announced its Intention To Float (ITF) at the Swiss Stock Exchange (SIX) on October 25th.
A Zug-based company, Varia US Properties is active since 2015 and invests exclusively in U.S. multifamily housing with a main focus on secondary and tertiary markets in order to secure rental income and value growth. Varia US Properties’ portfolio was valued at USD 301 million by Colliers International as of June 30 and consisted of 39 properties with approximately 5’000 residential units located in 14 U.S. States.
Varia US Properties expects to list in the coming months, subject to market conditions. It plans to use the net proceeds mainly to fund additional real estate acquisitions in the targeted markets and regions in the U.S.