SOUTH JORDAN, Utah, June 17, 2016 /PRNewswire/ -- Rio Tinto Kennecott has reached an agreement with Värde Partners, a leading investment firm, to sell its land and associated assets in the Daybreak Community. 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. 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."
"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.
The deal is scheduled to close in early summer 2016, upon which certain funds managed by Värde Partners will assume ownership of Daybreak and its associated assets, forming a new company that will continue development and operations of the community. Key members of Daybreak's current management team will continue with the new venture.
Kennecott was represented by Land Advisors Organization in the transaction.
About Rio Tinto Kennecott
As the second largest copper producer in the United States, Rio Tinto Kennecott comprises nearly 7 percent of U.S. copper production. Kennecott's Bingham Canyon Mine is one of the top producing copper mines in the world with production at more than 19 million tons. Rio Tinto purchased Kennecott and related facilities in 1989 and has invested more than $2 billion in modernization since that time. Kennecott has also spent more than $350 million on the cleanup of historic mining waste and $100 million on groundwater cleanup. Take a closer look at riotintokennecott.com.
About Rio Tinto
Rio Tinto is a leading international mining group headquartered in the United Kingdom, combining Rio Tinto plc, a London and NYSE listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.
Rio Tinto's business is finding, mining, and processing mineral resources. Major products are aluminum, copper, diamonds, energy (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc) and iron ore. Activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and Southern Africa. www.riotinto.com
About Värde Partners
Värde Partners is a global alternative investment adviser focused on investing capital and resources across multiple segments and markets that includes 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. www.varde.com
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SOURCE Varde Partners