Varia US and Brookfield Form $694M Multifamily Joint Venture to Expand Portfolio

On Aug. 13, affiliates of Brookfield Asset Management entered into a $694 million joint venture with Varia US Properties AG, a Swiss-listed multifamily investor externally managed by Stoneweg, an SWI Group company, according to a press release. The partnership covers 13 properties within Varia's 17-asset U.S. multifamily portfolio and grants access to up to $200 million to fund future acquisitions.

The contributed 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. The 13 properties encompass 4,112 units and span nine states.

Strategic Rationale and Market Positioning

Over the past several years, Varia US Properties has focused on building and operating a high-quality U.S. multifamily portfolio while creating long-term value for shareholders. The Brookfield joint venture represents the next step in that 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 concentrates on secondary and tertiary markets characterized by strong population and employment growth. “Varia US Properties is exclusively investing in the US multifamily market [‘workforce housing’ market],” the spokesperson added.

Financial Details and Valuation

The $694 million asset value reflects a blended discount of approximately 9.5% to the 13 properties’ first-quarter 2026 appraised fair value. This discount aligns with current institutional multifamily portfolio transaction pricing and accounts for 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.

Joint Venture Structure and Governance

The joint venture is structured in two portfolios. In the first portfolio, comprising four properties totaling 1,060 units with an asset value of $178.4 million, Brookfield will hold a 90% equity interest, while Varia US retains a 10% equity interest. As the majority holder, Brookfield will hold traditional major decision-making rights, but Varia US will retain day-to-day operational control.

In the second portfolio, consisting 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.

Disposition and Reinvestment Plans

The plan calls for a full disposition of the second portfolio within 12 to 36 months, with proceeds reinvested into new acquisitions. Varia US also expects to sell two of the four properties it will continue to wholly own within 12 months of closing. With the closing of the joint venture and the sale of the additional properties, Varia expects to generate $101.9 million.

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

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