Vornado to Spin Off Shopping Center Business into REIT Named SpinCo

by Nate Hunter

Paramus, N.J. – The 85 properties total approximately 16.1 million square feet and have an average occupancy of 95 percent.

Paramus, N.J. – Vornado Realty Trust plans to spin off its shopping center business consisting of 85 centers into a publicly traded REIT named SpinCo. The properties total approximately 16.1 million square feet and have an average occupancy of 95 percent. Jeffrey Olson, CEO of Equity One Inc., will be SpinCo’s chairman of the board and CEO. Robert Minutoli, executive vice president of Vornado’s retail segment, will remain with SpinCo as its COO. SpinCo’s average base rent is $18.75 per square foot, compared to the peer median of $15.66 per square foot. Goldman, Sachs & Co. and Morgan Stanley are Vornado’s exclusive financial advisors, and Sullivan & Cromwell LLP is legal advisor to Vornado in connection with the proposed transaction.

Scott Reid

 

 

 

 

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