Varia US Properties intends to increase its share capital to exploit further growth opportunities – no significant property damage due to Hurricane IrmaSeptember 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