New Brookfield $694M Multifamily Venture Seeks Repositioning to High-Quality Assets
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Varia US Properties AG has formed a multifamily joint venture with Brookfield Asset Management, which will focus on higher-quality multifamily assets.
The JV, worth $693.9 million and divided across two vehicles, includes 13 of Varia's 17 multifamily properties. The Swiss-based firm, which exclusively concentrates on the U.S. and operates under global investment conglomerate SWI Group Company, plans to actively invest in the current JV.
However, Varia's strategy will shift to repositioning toward high-quality properties through acquisition while disposing of some of its older and capital-intensive existing properties in the portfolio in an effort to maximize portfolio value, according to the firm. The JV will have access to $200 million in buying power. It's unclear if Brookfield and Varia will target any specific regions.
Overall, Varia is seeking to expand its portfolio.
"Partnering with an institution of Brookfield's calibre is a strong reflection of the quality of Varia US's portfolio and of our platform," Max-Herve George, co-founder and CEO of SWI Group, said in a statement.
"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."
The 13 exiting properties are located in nine states, covering 4,112 units. The other four properties will stay fully owned by Varia.
According to the company, it has mainly focused on tertiary and secondary markets that possess strong employment and population growth.
For multifamily nationally, demand has been through the roof. Apartment absorption totaled 279,000 units in the first half of 2026, the second-highest level on record and 103.8% above the long-term average, according to a recent report from Newmark. This is helping the sector work its way through the elevated supply that came online during 2022 and 2024.
Source: GlobeSt/ALM