Dive Brief:

• On Aug. 13, affiliates of Brookfield Asset Management entered into a $694 million joint venture with Varia US Properties AG, a Swiss-listed investor in multifamily that is, externally managed by Stoneweg, an SWI Group company, according to a press release.
• The joint venture, which covers 13 properties in Varia's 17-asset U.S. multifamily portfolio, will provide access to up to $200 million to fund future acquisitions. Those assets have been divided into two newly formed vehicles. With the capital injection, Varia said it can expand and improve the quality of its portfolio. 
• Varia plans to invest in the JV assets to maximize value ahead of disposals. It will then recycle proceeds into higher-quality acquisitions. The 13 properties Varia is contributing to the JV encompass 4,112 units and span nine states.

Dive Insight:

Over the past several years, Varia US Properties has been focused on building and operating a high-quality U.S. multifamily portfolio while creating long-term value for shareholders, and the Brookfield JV is the next step in the process, a spokesperson told Multifamily Dive in emailed comments.

“We see Brookfield’s decision to partner with us as a strong external validation of both the quality of our underlying real estate portfolio and the capabilities of our operating platform,” the spokesperson said.

Varia focuses on secondary and tertiary markets that are characterized by strong population and employment growth.

“Varia US Properties is exclusively investing in the US multifamily market [‘workforce housing’ market],” the spokesperson said.

The $694 million asset value reflects a blended discount of approximately 9.5% to the 13 properties’ first-quarter 2026 appraised fair value, reflecting current institutional multifamily portfolio transaction pricing and the scale, liquidity and certainty provided by the transaction, per the release. 

The transaction also significantly strengthens Varia’s financial position. “It unlocks substantial liquidity, improves our balance sheet and gives us greater flexibility in managing the business, while reducing our exposure to older and more capital-intensive assets,” the spokesperson said.

In the first JV portfolio of four properties totaling 1,060 units with an asset value of $178.4 million, Brookfield will hold a 90% equity interest, while Varia US will retain a 10% equity interest. As the majority holder, Brookfield will hold traditional major decision-making rights. Varia US will retain day-to-day operational control of the portfolio.

In the second portfolio of nine properties, totaling 3,052 units with an asset value of $515.5 million, Brookfield will hold a 40% equity interest and Varia US will retain a 60% equity interest. 

Varia US will continue to hold major decision rights over asset sales for the first two years following closing and maintain day-to-day operational control. The plan calls for a full disposition of this portfolio in 12 to 36 months, with proceeds reinvested into new acquisitions.

Varia US expects to sell two of the four properties it will continue to wholly own within 12 months of closing. With the closing of the JV and the sale of the additional properties, it expects to generate $101.9 million.

Newmark was Varia US’ financial advisor, and Ropes & Gray LLP was its legal advisor in the transaction. Kirkland & Ellis LLP served as Brookfield's legal advisor.

Click here to sign up to receive multifamily and apartment news like this article in your inbox every weekday.