Vornado to spin off strip center properties into new REIT
Publish Date: April 14, 2014
Vornado Realty Trust plans to spin off its shopping center business, which consists of 81 strip centers and four malls, into a publicly traded REIT. The strip centers are located primarily in the Northeast. The malls are Bergen Town Center, in Paramus, N.J.; andMonmouth Mall, in Eatontown, N.J.; plus two malls in the suburbs of San Juan, Puerto Rico. Together, all these properties amount to some 16.1 million square feet; the average occupancy rate across the entire portfolio was 95.5 percent as of Dec. 31. The new REIT’s 2014 net operating income is projected to be approximately $200 million. Jeffrey S. Olson, currently CEO of Equity One, will become chairman and CEO of the yet-to-be-named spinoff. Robert Minutoli, executive vice president of Vornado’s retail segment, will work for the new REIT as COO. Steven Roth, chairman and CEO of Vornado, will serve on the board of the REIT, which is being called SpinCo until a permanent name is chosen. After the spinoff, Vornado’s business will be concentrated in New York City and Washington, D.C., and will comprise office properties and Manhattan street retail assets.