Vornado’s Retail JV Enters into $350 Million Transaction with UNIQLO
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.
Vornado Realty Trust (NYSE:VNO) ha annunciato che la joint venture per il retail di strada, di cui detiene il 52%, ha raggiunto un accordo per vendere una parte del flagship store di UNIQLO negli Stati Uniti situato al 666 Fifth Avenue a UNIQLO per 350 milioni di dollari. La joint venture possiede 17.295 piedi quadrati di un negozio UNIQLO di 90.732 piedi quadrati. Si stima che i 340 milioni di dollari di proventi netti saranno utilizzati per rimborsare parzialmente i 390 milioni di dollari di equity preferenziale di Vornado sullo asset.
La transazione dovrebbe chiudersi entro il primo trimestre del 2025, soggetto a condizioni consuete e alla chiusura contemporanea di UNIQLO con il proprietario del condominio uffici. La joint venture manterrà la proprietà di 23.832 piedi quadrati di spazio retail al 666 Fifth Avenue, inclusi i negozi Abercrombie & Fitch e Tissot. Eastdil Secured ha agito come consulente per la joint venture retail di strada di Vornado in questa transazione.
Vornado Realty Trust (NYSE:VNO) ha anunciado que su joint venture de retail en la calle, de la que posee el 52%, ha acordado vender una parte de la tienda insignia de UNIQLO en EE. UU. ubicada en 666 Fifth Avenue a UNIQLO por 350 millones de dólares. La joint venture posee 17,295 pies cuadrados de una tienda UNIQLO de 90,732 pies cuadrados. Se estima que los 340 millones de dólares de ingresos netos se utilizarán para reembolsar parcialmente los 390 millones de dólares de capital preferente de Vornado sobre el activo.
Se espera que la transacción se cierre para el primer trimestre de 2025, sujeto a las condiciones habituales y al cierre simultáneo de UNIQLO con el propietario del condominio de oficinas. La joint venture conservará la propiedad de 23,832 pies cuadrados de espacio comercial en 666 Fifth Avenue, incluidos las tiendas Abercrombie & Fitch y Tissot. Eastdil Secured actuó como asesor de la joint venture de retail en la calle de Vornado en esta transacción.
Vornado Realty Trust (NYSE:VNO)는 52% 소유한 스트리트 리테일 합작회사가 666 5번가에 위치한 UNIQLO의 미국 플래그십 스토어 일부를 UNIQLO에 3억 5천만 달러에 판매하기로 합의했다고 발표했습니다. 이 합작회사는 UNIQLO의 90,732평방피트 매장에서 17,295평방피트를 소유하고 있습니다. 예상되는 3억 4천만 달러의 순수익은 Vornado의 이 자산에 대한 3억 9천만 달러의 우선주를 부분적으로 상환하는 데 사용될 것입니다.
이번 거래는 2025년 1분기까지 완료될 것으로 예상되며, 일반적인 조건 및 UNIQLO가 오피스 콘도 소유자와의 동시 마감을 조건으로 합니다. 합작회사는 666 5번가에서 Abercrombie & Fitch 및 Tissot 매장을 포함하여 23,832평방피트의 리테일 공간 소유권을 유지할 것입니다. Eastdil Secured는 이 거래에서 Vornado의 스트리트 리테일 합작회사를 위한 자문 역할을 했습니다.
Vornado Realty Trust (NYSE:VNO) a annoncé que sa joint-venture de retail de rue, dont elle détient 52%, a convenu de vendre une partie du flagship store de UNIQLO aux États-Unis situé au 666 Fifth Avenue à UNIQLO pour 350 millions de dollars. La joint-venture possède 17.295 pieds carrés du magasin UNIQLO de 90.732 pieds carrés. Les 340 millions de dollars de produits nets estimés seront utilisés pour rembourser partiellement les 390 millions de dollars de capital privilégié de Vornado sur l'actif.
La transaction devrait se clôturer d'ici le premier trimestre 2025, sous réserve des conditions habituelles et de la clôture simultanée de UNIQLO avec le propriétaire du condominium de bureaux. La joint-venture conservera la propriété de 23.832 pieds carrés d'espace de vente au détail au 666 Fifth Avenue, y compris les magasins Abercrombie & Fitch et Tissot. Eastdil Secured a agi en tant que conseiller de la joint venture retail de rue de Vornado dans cette transaction.
Die Vornado Realty Trust (NYSE:VNO) hat bekannt gegeben, dass ihre 52%-Besitzanteile an einem Straße-Retail-Joint-Venture zugestimmt haben, einen Teil des US-Flaggschiffgeschäfts von UNIQLO in der 666 Fifth Avenue für 350 Millionen Dollar an UNIQLO zu verkaufen. Das Joint Venture besitzt 17.295 Quadratfuß von UNIQLOs 90.732 Quadratfuß großem Geschäft. Die geschätzten 340 Millionen Dollar Nettoprognosen werden teilweise zur Rückzahlung von Vornados 390 Millionen Dollar bevorzugtem Eigenkapital auf dem Vermögen verwendet.
Die Transaktion soll bis zum ersten Quartal 2025 abgeschlossen sein, vorbehaltlich üblicher Bedingungen und UNIQLOs gleichzeitiger Schließung mit dem Besitzer des Büro-Kondominiums. Das Joint Venture wird die Eigentümerschaft von 23.832 Quadratfuß Retailfläche in der 666 Fifth Avenue behalten, einschließlich der Geschäfte von Abercrombie & Fitch und Tissot. Eastdil Secured fungierte als Berater für Vornados Straße-Retail-Joint-Venture in dieser Transaktion.
- 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
- Reduction in owned retail space at prime location
- Transaction subject to conditions and potential delays until Q1 2025
Insights
This transaction marks a significant strategic move for Vornado's retail joint venture. The
The retention of 23,832 square feet of retail space, including Abercrombie & Fitch and Tissot stores, suggests a balanced approach to portfolio management. This transaction could potentially unlock value for Vornado shareholders while maintaining a significant presence in a prime location. Investors should monitor how this impacts Vornado's future cash flows and dividend capacity.
UNIQLO's decision to purchase part of its U.S. flagship store space is a strong vote of confidence in the future of physical retail, particularly in high-traffic urban locations. This move suggests UNIQLO is doubling down on its brick-and-mortar presence in a key market, contrary to broader trends of retail space reduction.
The transaction's structure, involving multiple parties and condominium interests, reflects the complex nature of prime urban real estate deals. The expected closing timeline, extending to Q1 2025, indicates the intricacy of such transactions. For the retail sector, this deal may signal a potential shift in how major brands approach their flagship locations, possibly preferring ownership over leasing in strategic sites.
This transaction showcases Vornado's adept capital management. By using the proceeds to pay down preferred equity, Vornado is effectively restructuring its capital stack, potentially lowering its cost of capital. The
The joint venture structure, with Vornado owning
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.
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FAQ
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