VORNADO REALTY TRUST (NYSE:VNO) announced today that it has agreed to
sell Mart segment assets, the Washington Design Center, the Boston
Design Center, the L.A. Mart and the Canadian Trade Shows.
The total sales price for these assets is approximately $228 million of
which $193 million is cash and $35 million is 9-month seller financing
for the L.A. Mart. Net proceeds will be approximately $144 million after
closing costs, $67 million of indebtedness on the Boston Design Center
and income taxes on the gain on the sale of the Canadian Trade Shows.
The sales of the L.A. Mart and the Canadian Trade Shows have closed. The
other sales are subject to customary closing conditions and are expected
to close in the third quarter. The Company will recognize an $11.9
million loss in the second quarter and a $24.5 million gain in the third
quarter, including non-comparable Funds From Operations of $19.2 million
from the sale of the Canadian Trade Shows.
As previously reported in January, Vornado sold the Mart segment’s 350
West Mart Center for $228 million, resulting in a $55 million gain.
Vornado also is in the process of transferring 7 West 34th
Street to its New York segment.
Vornado continues to own the 3.5 million square foot Chicago Merchandise
Vornado also has entered into an agreement to sell 409 Third Street S.W.
for $200 million which will result in net proceeds of $186 million and a
net gain of $120 million. This office building, which is part of the
Washington, DC segment is contiguous to the Washington Design Center and
is being sold to the same purchaser. Both of these assets were acquired
as part of the original Mart acquisition. This sale is also subject to
customary closing conditions and is expected to close in the third
Vornado Realty Trust is a fully integrated equity real estate investment
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.