Vornado’s Retail JV Completes $350 Million Transaction with UNIQLO

Rhea-AI Summary

Vornado Realty Trust (NYSE:VNO) has announced the completion of a significant real estate transaction through its 52% owned street retail joint venture. The venture has sold a portion of UNIQLO's U.S. flagship store at 666 Fifth Avenue to UNIQLO for $350 million.

The joint venture maintains ownership of 23,832 square feet of retail space at the same address, including 7,416 square feet at grade, which houses the Abercrombie & Fitch and Tissot stores. The net proceeds of $342 million from the sale have been utilized to partially redeem Vornado's $390 million of preferred equity on the asset.

Positive

• Substantial cash inflow of $350 million from property sale
• Reduction of preferred equity obligations by $342 million
• Retention of valuable retail space (23,832 sq ft) at prime location

Negative

• Reduction in property portfolio and associated rental income potential
• Sale proceeds insufficient to fully redeem $390 million preferred equity

NEW YORK, Jan. 08, 2025 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE:VNO) announced today that its 52% owned street retail joint venture has completed the previously announced sale to UNIQLO of the portion of its U.S. flagship store at 666 Fifth Avenue owned by the retail joint venture for $350 million.

The joint venture continues 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.

The $342 million of net proceeds from the sale were used to partially redeem Vornado’s $390 million of preferred equity on the asset.

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

How much did UNIQLO pay for Vornado's Fifth Avenue retail space in 2025?

UNIQLO paid $350 million for the portion of their U.S. flagship store at 666 Fifth Avenue owned by Vornado's retail joint venture.

What will VNO do with the proceeds from the UNIQLO sale?

Vornado is using the $342 million in net proceeds to partially redeem its $390 million of preferred equity on the asset.

How much retail space does VNO still own at 666 Fifth Avenue?

Vornado's joint venture retains 23,832 square feet of retail space, including 7,416 square feet at grade, currently occupied by Abercrombie & Fitch and Tissot stores.

What is Vornado's ownership percentage in the retail joint venture that sold to UNIQLO?

Vornado owns 52% of the street retail joint venture that completed the transaction with UNIQLO.