By Amit Chowdhry Today at 10:30 AM

SWI Group has announced a strategic partnership with Brookfield Asset Management involving 13 properties from Varia US Properties’ U.S. multifamily portfolio through a newly created two-vehicle joint venture with an aggregate gross asset value of approximately $693.9 million.

Varia US Properties, a Swiss-listed investor focused exclusively on U.S. multifamily real estate, is externally managed by Stoneweg, an SWI Group company.

The joint venture includes 13 of Varia US’ 17 properties, comprising 4,112 apartment units across nine U.S. states.

The remaining four properties will continue to be wholly owned and consolidated by Varia US.

A key component of the partnership is access to up to $200 million of equity capital for future acquisitions.

That additional capital is intended to support Varia US as it expands and repositions its portfolio toward higher-quality multifamily properties.

The company plans to actively invest in the 13 properties contributed to the joint venture in an effort to maximize their value ahead of planned dispositions.

Proceeds generated from those future sales are expected to be recycled into higher-quality acquisitions.

The strategy is designed to improve portfolio quality while enhancing Varia US’ liquidity and financial flexibility.

Varia US also expects the structure to reduce the amount of capital required to maintain older and more capital-intensive properties.

The partnership gives Varia US access to Brookfield’s institutional capital while allowing the company to continue participating in value creation within the existing portfolio.

Varia US was established in 2015 and focuses on multifamily properties in U.S. secondary and tertiary markets characterized by population and employment growth.

Its strategy centers on acquiring, repositioning and managing residential properties to generate rental income and long-term value appreciation.

The Brookfield partnership gives the company a larger capital base to pursue acquisitions as it shifts toward a higher-quality asset mix.

For SWI Group, the transaction also represents another strategic partnership across its broader global investment platform.

SWI Group currently manages approximately €11 billion in assets and operates across sectors including data centers, real estate, credit and financial services.

The group employs more than 280 people across 26 offices globally.

KEY QUOTES:

“Partnering with an institution of Brookfield’s calibre is a strong reflection of the quality of Varia US’s portfolio and of our platform.”

“This joint venture gives us the firepower and the flexibility to concentrate on high-quality residential communities, while positioning Varia US to grow decisively as the U.S. living sector continues to reward scale and discipline.”

Max-Hervé George, Co-Founder and CEO of SWI Group