Vornado to spin off shopping centers into separate REIT

Equity One CEO Jeffrey Olson will head new venture

TRD New York /
Apr.April 11, 2014 05:25 PM

The speculation is over. Vornado Realty Trust will spin off its 85 shopping centers into a publicly-traded real estate investment trust. The move is in line with Vornado CEO Steven Roth’s pledge to focus the company’s efforts on core assets in New York City and Washington, D.C.

Vornado tapped Jeffrey Olson, the current CEO of shopping center landlord Equity One, to head the new venture. Last month, Equity One announced that Olson would not be renewing his contract.

Vornado is likely to file a request to register securities with the Securities and Exchange Commission in the second quarter of 2014, according to an alert on investment website Seeking Alpha. In total, the properties — the vast majority of them strip malls in the Northeast — contain 16.1 million square feet and had an average occupancy of 95.5 percent at the end of last year.

Over the past two years Vornado has sold about $3.6 billion worth of assets. By making good on his promise to simplify and streamline the company’s business, Roth has “regenerated a lot of goodwil,” Alexander Goldfarb, an analyst with Midtown-based investment banking firm Sandler O’Neill + Partners, told The Real Deal last month.

The news of the venture was first reported by Bloomberg News.

Related Articles

Vornado's Steve Roth and 220 Central Park South (Credit: Getty Images, iStock)

Free and clear: Vornado pays off debt at 220 CPS

Vornado chairman and CEO Steven Roth, and 608 Fifth Avenue (Credit: Getty Images)

“Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call

Steven Roth, CEO of Vornado and 640 Fifth Avenue (Credit: Getty Images and Vornado Realty Trust)

Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue

Steve Roth and 512 West 22nd Street (Credit: Getty Images)

E-commerce company inks pricey deal at Vornado’s High Line office space

 Li Ge and 220 Central Park South (Credit: WuXi Biologics and Getty Images)

Biotech billionaire pays $26M for 220 CPS pad

220 Central Park South and Vornado chairman Steven Roth (Credit: Google Maps and Getty Images)

Another $60M condo closes at 220 Central Park South

220 Central Park South (Credit: Getty Images)

Vornado’s 220 Central Park South closes $64M condo sale

Vornado chairman Steven Roth (Credit: Getty Images)

Vornado slashes Forever 21’s rent, dimming 2020 outlook