The JBG Cos. is expected to hang onto nearly three dozen
properties including the King of Prussia Town Center,
a retail complex it is constructing at the Village of Valley Forge in King of
Prussia, Pa., as part of its proposed merger with New York REIT.
While little noticed here because its presence is limited
to that project, the merger between New York REIT (NYSE: NYRT) and JBG, which
is based in Chevy Chase, Md., has made some waves because it has shed some
light on the private company. In addition, some investors have
As the deal gets sorted out, there are some properties
that won't make it into the combined companies. Several of the properties are
being withheld because they reportedly do not fit the strategy for the
post-merger company that will focus on New York and the Washington D.C., areas.
The real estate that is being withheld will not be part
of the newly formed real estate investment trust for a range of reasons. Some
of the assets that are in markets the new company will consider non-core, were
acquired through 1030-like exchanges, or are only partially owned by JBG in a
partnership or fund with other investors, according to the Washington Business
Journal. Some of those properties that are being excluded are already under
agreement. JBG has identified between $1.5 billion and $2 billion in potential
asset sales.
The King of Prussia Town Center was the company’s first
foray into the Philadelphia market. Set to open soon, the project involves a
230,000-square-foot retail complex within a 125-acre mixed-use development off
North Gulph Road.
It’s unknown what will be done with the King of Prussia
Town Center. A spokesman for JBG declined to comment.
JBG Realty Trust Inc., which is expected to be created
post merger, will be valued at $8.4 billion if a deal is consummated.
Source: Philadelphia
Business Journal
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