Veris Residential Completes $420 Million Sale of Harborside 1, 2, and 3

Rhea-AI Summary

Veris Residential, Inc. (NYSE: VRE) has completed the $420 million sale of its Harborside 1, 2, and 3 office buildings in Jersey City, New Jersey, releasing approximately $360 million in net proceeds. This transaction marks a key milestone in the company's shift to a multifamily-focused strategy, with multifamily assets now accounting for about 98% of net operating income, significantly up from 39% in early 2021. CEO Mahbod Nia highlighted that this sale is part of over $2 billion in non-strategic asset sales over two years, aimed at unlocking shareholder value. Additionally, the company exercised its right to purchase and redeem certain ownership interests from Rockpoint Group, with a repayment expected within thirty days unless deferred. Cushman & Wakefield and CBRE facilitated the transaction, with financial advisory from Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC.

Positive

• Completion of $420 million sale of Harborside 1/2/3 promotes transition to multifamily focus.
• Multifamily assets now comprise approximately 98% of net operating income, up from 39%.
• Over $2 billion in non-strategic asset sales completed in two years, indicating successful strategy execution.

Negative

• None.

JERSEY CITY, N.J., April 5, 2023 /PRNewswire/ -- Veris Residential, Inc. (NYSE: VRE) (the "Company), a forward-thinking, environmentally- and socially-conscious real estate investment trust (REIT) that primarily owns, operates, acquires, and develops Class A multifamily properties, today announced the completion of its $420 million sale of Harborside 1, 2, and 3 ("Harborside 1/2/3"), Class A office buildings in Jersey City, New Jersey, releasing approximately $360 million of net proceeds.

"The sale of Harborside 1/2/3 represents a significant milestone and a critical step in the company's transition to a pure-play multifamily company," said Mahbod Nia, Chief Executive Officer of Veris Residential. "The closing of this transaction completes over $2 billion of non-strategic asset sales during the past two years. As we approach the final stages of our transformation, our focus will be on concluding the few remaining non-strategic asset sales and working with our Board to unlock the substantial value embedded in the company for our shareholders."

With the Harborside 1/2/3 transaction complete, Veris Residential's multifamily assets account for approximately 98% of the Company's net operating income, up from 39% as of the end of the first quarter of 2021.

"The close of this transaction is a testament to the unwavering commitment and determination of the Veris Residential team. We have proven our ability to navigate complex dispositions amidst challenging market conditions," said Jeff Turkanis, Chief Investment Officer of Veris Residential.

In connection with closing of the transaction, the Company exercised its right to purchase and redeem the preferred units and certain other ownership interests ("Put/Call") from Rockpoint Group, L.L.C. ("Rockpoint") and its affiliates in Veris Residential Trust. Exercising the Put/Call right triggers a repayment within thirty days unless Rockpoint exercises its right to defer repayment by up to twelve months, which it must do within ten days. The Company also terminated its revolving credit and term loan agreement.

Cushman & Wakefield and CBRE arranged the transaction. Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are acting as financial advisors to Veris Residential on its strategic transformation.

About Veris Residential, Inc.
Veris Residential, Inc. is a forward-thinking, environmentally- and socially-conscious real estate investment trust (REIT) that primarily owns, operates, acquires, and develops holistically-inspired, Class A multifamily properties that meet the sustainability-conscious lifestyle needs of today's residents while seeking to positively impact the communities it serves and the planet at large. The company is guided by an experienced management team and Board of Directors and is underpinned by leading corporate governance principles, a best-in-class and sustainable approach to operations, and an inclusive culture based on equality and meritocratic empowerment. For additional information on Veris Residential, Inc. and our properties available for lease, please visit verisresidential.com.

We consider portions of this information, including the documents incorporated by reference, to be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of such act. Such forward-looking statements relate to, without limitation, our future economic performance, plans and objectives for future operations and projections of revenue and other financial items. Forward-looking statements can be identified by the use of words such as "may," "will," "plan," "potential," "projected," "should," "expect," "anticipate," "estimate," "target," "continue" or comparable terminology. Forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which we cannot predict with accuracy and some of which we might not even anticipate. Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, we can give no assurance that such expectations will be achieved. Future events and actual results, financial and otherwise, may differ materially from the results discussed in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading "Disclosure Regarding Forward-Looking Statements" and "Risk Factors" in the Company's Annual Report on Form 10-K, as may be supplemented or amended by the Company's Quarterly Reports on Form 10-Q, which are incorporated herein by reference. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise, except as required under applicable law.

Media contact
Amanda Shpiner/Grace Cartwright
Gasthalter & Co.
212-257-4170
Veris-Residential@gasthalter.com  

View original content to download multimedia:https://www.prnewswire.com/news-releases/veris-residential-completes-420-million-sale-of-harborside-1-2-and-3-301791144.html

SOURCE Veris Residential, Inc.

FAQ

What is the significance of the $420 million sale for Veris Residential (NYSE: VRE)?

The sale is a crucial step in Veris Residential's transition to a pure-play multifamily company, significantly increasing the percentage of multifamily assets in its portfolio.

How much net proceeds did Veris Residential receive from the Harborside sale?

Veris Residential released approximately $360 million in net proceeds from the sale.

What percentage of net operating income does Veris Residential's multifamily assets account for now?

Multifamily assets now account for about 98% of Veris Residential's net operating income.

What does the completion of the Harborside sale mean for VRE shareholders?

The completion of the sale is expected to unlock substantial value for shareholders, as the company moves towards a more focused multifamily strategy.