Vornado Joint Venture Agrees To Sell Part of 666 Fifth Avenue to Uniqlo

By Emon Reiser

Vornado Realty Trust said its 52%-owned retail joint venture has agreed to sell some of its square footage at 666 Fifth Avenue in New York, where Japanese retailer Uniqlo operates its U.S. flagship store.

Uniqlo agreed to buy 17,295 square feet of its 90,732-square-foot store in a transaction valued at $350 million. Vornado's joint venture will continue to own the 23,832 square feet occupied by Abercrombie & Fitch and Tissot stores at the location.

Vornado said $340 million in net proceeds from the sale, expected to close by the first quarter of 2025, will be used to partially repay Vornado's $390 million of preferred equity on the property and pass-through leases between the office condominium owner and the retail joint venture will be terminated. Uniqlo has entered into a separate transaction with the office condominium owner for the remainder of the store.

Vornado announced the deal in tandem with its second-quarter results. The real estate investment trust reported a quarterly profit of $50.8 million on $450.3 million in revenue.

Write to Emon Reiser at emon.reiser@wsj.com

(END) Dow Jones Newswires

August 05, 2024 17:14 ET (21:14 GMT)

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