$VRE to be acquired by Affinius / GIC, who are backing operating partner Vista Hill, which is co-led by a former Roseland Property Company executive and Jonathan Kushner of Kushner real estate.

Some family drama here - as I understand it Kushner Real Estate is run by Murray and son Jonathan not the Kushner Company, of Charles, Jared, and Joshua fame and who sought to buy the company back in 2022 & 2023. So the lower profile, lesser known Kushner’s have won out here.

Price of $19 per share reflects a low 5% cap rate (somewhere around 5.0% - 5.5% before considering acquiror’s costs). This is about where I pegged the value, which was ~$19.30 in my most recent update. This is below the price Erez laid out in their recent 13D filing of $22 - $25 per share but I always thought that was aggressive.

This deal is well financed by groups with low cost of capital. Management comp is getting accelerated / vested. Long-standing activist Bow Street, who own ~5.5% are on board. While the termination fee is not extreme at $60m (~$0.60 per share / 3% of equity value), I doubt we’ll see a competing, superior bid.