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Vornado Realty $VNO to Spin Off, Merge DC Assets With JGB in $8.4B Deal

Vornado Realty $VNO to Spin Off, Merge DC Assets With JGB in $8.4B Deal

previously announced merger between JGB and New York REIT Inc. (NYSE: NYRT), expected to create an $8.4 billion New York City and Washington, DC REIT, was terminated by mutual agreement. Vornado shareholders are expected to own 74% of the combined company, JBG limited partners are expected to own 20%, and JBG management is expected to own 6%. The combined company’s portfolio will consist of 50 office properties totaling 11.8 million square feet, 18 multifamily properties with 4,451 residential units, and 11 other properties totaling 0.7 million square feet. These assets are located in premier submarkets within the Washington, DC metropolitan area, concentrated in Downtown District of Columbia, Crystal City and Pentagon City, the Rosslyn-Ballston Corridor, Reston, and Bethesda. Following the spin-off, Vornado will be a New York-focused office and high street retail REIT that will own 18.7 million square feet of Class A Manhattan office properties in the best submarkets, the largest Manhattan high street retail portfolio, encompassing 3.1 million square feet in 72 properties, and prime franchise assets in San Francisco and Chicago. “In addition to our irreplaceable portfolio in New York City, Vornado has a fortress balance sheet, significant dividend growth potential driven by recently signed leases, and a unique value creation opportunity from our Penn Plaza holdings,” said Vornado’s Roth. Goldman, Sachs & Co. and Morgan Stanley & Co. LLC are Vornado’s exclusive financial advisors and Sullivan & Cromwell LLP and Roberts and Holland are legal advisors to Vornado in connection with the proposed transactions. BofA Merrill Lynch is the exclusive financial advisor and Hogan Lovells US LLP is the legal advisor to JBG. Steven Roth, Chairman and CEO, Vornado Realty Trust.]]>