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