- Total consideration is $465 million.
- The transaction is expected to be funded using $125 million in PREIT Common and Preferred Operating Partnership Units with the balance expected to be paid in cash, including paying off debt to affiliates of Vornado, to be assumed at closing. Under certain circumstances, additional Units could be payable in lieu of cash.
- As a result of this transaction, Vornado will be a passive investor in PREIT and will be subject to an equity ownership limit of 9.9% and a standstill agreement.
- Vornado will complete the ongoing renovation of Springfield Town Center's non-anchor space.
- PREIT and Vornado will jointly lease the property, effective immediately, and through closing.
- Closing will occur two weeks following completion of the redevelopment and the achievement of 75% occupancy of non-anchor space and the opening of Dick's Sporting Goods and Regal Cinema or March 31, 2015, whichever is earlier.
- Vornado will be entitled to additional consideration equal to 50% of the value over the initial consideration calculated three years after closing, when the project is expected to be stabilized, utilizing a 5.5% capitalization rate.
- PREIT also becomes entitled to develop land surrounding the mall in accordance with existing zoning, which permits the construction of an additional 3 million square feet of retail, residential, office and hotel space.
PREIT Enters Into Agreement To Exchange $465 Million Of Cash And Operating Partnership Units For The Redeveloped Springfield Town Center
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