Vornado’s Retail JV Enters into $350 Million Transaction with UNIQLO
Rhea-AI Summary
Vornado Realty Trust (NYSE:VNO) has announced that its 52% owned street retail joint venture has agreed to sell a portion of UNIQLO's U.S. flagship store at 666 Fifth Avenue to UNIQLO for $350 million. The joint venture owns 17,295 square feet of UNIQLO's 90,732 square foot store. The estimated $340 million in net proceeds will be used to partially repay Vornado's $390 million of preferred equity on the asset.
The transaction is expected to close by the first quarter of 2025, subject to customary conditions and UNIQLO's concurrent closing with the office condominium owner. The joint venture will retain ownership of 23,832 square feet of retail space at 666 Fifth Avenue, including the Abercrombie & Fitch and Tissot stores. Eastdil Secured acted as an advisor to Vornado's street retail joint venture in this transaction.
Positive
- Sale of retail space to UNIQLO for $350 million
- Net proceeds of $340 million to partially repay $390 million of preferred equity
- Retention of 23,832 square feet of valuable retail space at 666 Fifth Avenue
Negative
- Reduction in owned retail space at prime location
- Transaction subject to conditions and potential delays until Q1 2025
News Market Reaction
On the day this news was published, VNO gained 12.65%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
NEW YORK, Aug. 05, 2024 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE:VNO) announced today that its
The joint venture will continue to own 23,832 square feet of retail space (7,416 square feet at grade) at 666 Fifth Avenue consisting of the Abercrombie & Fitch and Tissot stores.
All of the estimated
The sale is subject to customary closing conditions and the concurrent closing by UNIQLO of its separate transaction with the office condominium owner for the remainder of its store and is expected to close once the formation of the new condominium interests are completed, anticipated to occur by the first quarter of 2025. Eastdil Secured acted as an advisor to Vornado’s street retail joint venture in this transaction.
Vornado Realty Trust is a fully-integrated equity real estate investment trust.
CONTACT
Thomas J. Sanelli
(212) 894-7000
Certain statements contained herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as "approximates," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or other similar expressions in this press release. For a discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see “Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2023. Currently, some of the factors are the increased interest rates and inflation on our business, financial condition, results of operations, cash flows, operating performance and the effect that these factors have had and may continue to have on our tenants, the global, national, regional and local economies and financial markets and the real estate market in general.
FAQ
What is the value of Vornado's retail space sale to UNIQLO at 666 Fifth Avenue?
How much retail space is Vornado (VNO) selling to UNIQLO in this transaction?
When is the Vornado (VNO) and UNIQLO transaction expected to close?
How will Vornado (VNO) use the proceeds from the UNIQLO retail space sale?
