Utah-based Rio Tinto Kennecott has made a blockbuster move that will pump needed cash back into its mining operations. The company has reached an agreement to sell its land and associated assets of the Daybreak Community in South Jordan to investment firm Värde Partners.
Utah-based Rio Tinto Kennecott has made a blockbuster move that will pump needed cash back into its mining operations. The company has reached an agreement to sell its land and associated assets of the Daybreak Community in South Jordan to investment firm Värde Partners.
The sale includes approximately 500 finished home sites, 2,500 acres of undeveloped land, the Glass House Information Center, the SoDa Row Retail District, Oquirrh Lake and associated secondary water assets, according to a release from Rio Tinto Kennecott. Terms of the transaction were not disclosed.
“This divestment will facilitate fresh capital to fund Daybreak’s continued growth and expansion and contribute to Kennecott’s cash flow and flexibility as we streamline our business and focus on mining,” said Nigel Steward, Rio Tinto Kennecott managing director. “Daybreak is an exceptional community with tremendous value and we are confident Värde Partners will continue to move the Daybreak vision forward.” “Daybreak is an attractive property for Värde Partners. The acquisition of Daybreak directly aligns with our vision for owning top-quality real estate assets,” said Ali Haroon, partner and global head of real estate at Värde. “It is a great fit in Värde’s overall real estate strategy, which includes extensive real estate holdings around the globe.”
Värde is a privately owned international investment firm with over $40 billion invested. The company has major offices in Minneapolis, London and Singapore. According to a spokesperson in Minneapolis, Värde owns additional properties in the western U.S. and around the world, although she did not elaborate.
The Daybreak operation will now be under the direction of a new entity called Daybreak Communities which will be managed by Ty McCutcheon, formerly the director of residential real estate at Kennecott Land, a subsidiary of Rio Tinto Kennecott. Other key members of Daybreak’s current management team will continue with the new venture.
“We believe in the future of this community and are focused on ensuring that Daybreak will remain a thriving master-planned community. We are excited about growing the community responsibly working alongside the management team,” said Brendan Bosman, Värde’s lead managing director on the investment.
Kennecott was represented by Land Advisors Organization in the transaction, the statement said.
Värde Partners is focused on investing capital and resources across multiple segments and markets that include corporate assets and sovereign debt, residential mortgages, real estate, specialty finance, transportation, infrastructure and logistics. Värde sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors and private clients.
