Värde to Buy Master-Planned Community in Utah
- Jun 21, 2016
Salt Lake City—Värde Partners will soon add a 4,100-acre city-within-a-city to its holdings. The global alternative investment firm has signed on to acquire Daybreak, a master-planned community roughly 20 miles outside Salt Lake City in South Jordan, Utah, from developer Rio Tinto Kennecott.
It’s a big deal that certainly has a big price tag, but neither Värde nor Rio Tinto Kennecott is sharing the financial details of the agreement just yet.
Värde will snap up the sum total of Rio Tinto’s land and associated assets at Daybreak. It’s a list that includes 500 finished home sites; the SoDa Row Retail District; Oquirrh Lake and accompanying secondary water assets; the Glass House Information Center; and perhaps of greatest note, 2,500 acres of developable land. Värde will have the benefit of the seller’s expertise when building out the property, as top players from Kennecott’s land management team will join Värde as part of a new company, Daybreak Communities, formed for the express purpose of managing the continued development of Daybreak.
“The acquisition of Daybreak directly aligns with our vision for owning top-quality real estate assets. It is a great fit in Värde’s overall real estate strategy, which includes extensive real estate holdings around the globe,” Ali Haroon, global head of real estate at Värde, said in a prepared statement.
Värde has not specified just how it plans to finance the purchase of Daybreak. However, it certainly has options. In 2014, the firm closed The Värde Fund XI with commitments totaling $2 billion for investment in credit-oriented and distressed opportunities in a bevy of areas, including U.S. real estate.
If all goes as planned with the transaction, Värde will officially become the new owner of Daybreak early this summer.
Image courtesy of daybreakutah.com