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US: Stoneweg has partnered with Brookfield for a strategic recapitalisation of 13 US multifamily assets through a new joint venture.
Stoneweg says theme reflects the strength of its living platform and its conviction in the long-term fundamentals of the US multifamily sector. By combining high-quality assets with institutional capital, the partnership enhances financial flexibility, provides access to additional growth capital and positions the portfolio for future value creation.
With more than €2 billion in living assets under management, Stoneweg continues to expand its presence in one of the most resilient real estate sectors, supported by long-term demographic trends, housing affordability challenges and sustained rental demand.
The JV is between Varia US Properties AG, the Swiss-listed investor externally managed by Stoneweg and affiliates of Brookfield Asset Management.
The 13 multifamily properties comprise 4,112 units across the US. They have been divided into two newly formed vehicles, with an aggregate gross asset value of approximately $694 million.
The first is four-property, 1,060-unit portfolio, with a GAV of approximately $178 million. Brookfield will hold a 90 per cent equity interest and may provide up to $200 million of additional equity
capital to fund future acquisitions, with Varia US retaining a 10 per cent equity interest.
The second is a nine-property, 3,052-unit portfolio, with a GAV of approximately $516 million. Brookfield will hold a 40 per cent equity interest with Varia US retaining a 60 per cent equity interest.
Four properties will remain wholly owned and consolidated by Varia US, with two of these expected to be sold within 12 months, following the completion of asset management
programmes.
Varia US will actively invest in the JV assets to maximise value ahead of planned disposals, with proceeds recycled into higher-quality acquisitions.
Manuel Leuthold, chairman of the board of directors of Varia US Properties, said: “This transaction is a strong reflection of the quality of our portfolio and our team’s execution. We are
pleased to be partnering with Brookfield, a globally recognised firm with a strong track record in real estate. This transaction allows us to materially improve our balance sheet, crystallise
meaningful value for shareholders, and retain participation in the future upside of the assets we know best.”
Mark McLaughlin, CEO of real assets at Stoneweg, said: “Our global Living sector AUM today totals over €2 billion, reflecting our high conviction that the compelling drivers underpinning its resilience including affordability constraints, demographic shifts and tight supply, will endure. Strategic partnerships with sophisticated, blue-chip institutions such as Brookfield provide the capital that will enable us to take advantage of market dislocation and deliver on our growth ambitions.”
Highlights:
- Stoneweg has partnered with Brookfield for a strategic recapitalisation of 13 US multifamily assets through a new joint venture.
- The JV is between Varia US Properties AG, the Swiss-listed investor externally managed by Stoneweg and affiliates of Brookfield Asset Management.
- The 13 multifamily properties comprise 4,112 units across the US
- They have been divided into two newly formed vehicles, with an aggregate gross asset value of approximately $694 million.
