VORNADO REALTY TRUST (NYSE:VNO) announced today that it has completed
the transfer of the redeveloped Springfield Town Center, located in
Springfield, Fairfax County, Virginia, to Pennsylvania Real Estate
Investment Trust (NYSE:PEI) (“PREIT”) in exchange for $465 million;
comprised of $340 million of cash and 6,250,000 PREIT operating
partnership units, granted at $20 per unit. $19 million of tenant
improvements and allowances Vornado was responsible for has been treated
as a closing adjustment.
The exchange will result in a financial statement gain of approximately
$7.1 million in the first quarter of 2015. For income tax purposes, this
transaction will be treated as a tax-free exchange. Vornado’s 8.07%
ownership interest in PREIT will be accounted for under the equity
method.
Vornado Realty Trust is a fully integrated equity real estate investment
trust.
Certain statements contained herein may constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Such factors include, among others, risks associated with the timing of
and costs associated with property improvements, financing commitments
and general competitive factors.
Copyright Business Wire 2015