Transaction Marks Pivotal Point for Veris
Residential and Cements Company's Position as a Pure-Play
Multifamily REIT
Rockpoint's Preferred Equity Interest
Redeemed for $520 Million
BOSTON and JERSEY
CITY, N.J., July 26,
2023 /PRNewswire/ -- Veris Residential, Inc.
("Veris Residential") (NYSE: VRE), a forward-thinking,
environmentally and socially conscious REIT that primarily owns,
operates, acquires and develops Class A multifamily properties, and
Rockpoint, a Boston-based real
estate investment management firm, today announced that the
companies have completed a transaction in which Veris Residential
has purchased and redeemed the preferred units and certain other
ownership interests from Rockpoint and its affiliates in Veris
Residential Trust for $520
million.
"The negotiated early redemption of Rockpoint's
interest substantially simplifies the Company's overall
structure while maximizing our strategic and operational
flexibility moving forward," said Mahbod
Nia, Chief Executive Officer of Veris Residential. "We are
grateful to Rockpoint for their unwavering support and commitment
to the joint venture, through which we have developed a unique,
best-in-class multifamily portfolio."
"Rockpoint has been pleased to partner with Veris Residential
since 2017, and through multiple stages of its growth and
transformation," said Tom Gilbane, a
Managing Member of Rockpoint. "Rockpoint's disciplined,
market-based investment approach led us to work with Veris
Residential to build a high-quality portfolio, and we believe they
are well positioned going forward given the age, location, and
quality of their multifamily portfolio. We look forward to watching
their continued success."
The transaction substantially simplifies Veris Residential's
overall structure and is projected to save approximately
$24 million of annual interest while
paving the way for additional expense savings starting in 2024. The
transaction was funded with approximately $360 million of cash on hand released from the
sale of Harborside 1, 2 and 3 in April
2023, as well as a new $115
million transitional term loan and $60 million credit facility that are expected to
be repaid with approximately $200
million of proceeds anticipated from non-strategic assets
under binding contract.
J.P. Morgan and Goldman Sachs & Co. LLC provided the term
loan and revolving credit facility and acted as financial advisors
to Veris Residential on its strategic transformation. Eastdil
Secured acted as an advisor to the joint venture.
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
https://www.verisresidential.com/.
About Rockpoint
Rockpoint is a real estate private
equity firm that employs a fundamental value approach to investing,
targeting select product types and markets throughout the United States. The firm applies a
consistent and disciplined investment approach across its
investment programs, which span distinct return profiles. Rockpoint
continually assesses the market opportunity and evaluates potential
investments relative to intrinsic value and cash flow, targeting
investments that we believe are inefficiently priced or
misunderstood by the broader market. Rockpoint proactively pursues
opportunities that exhibit strong value potential that can be
realized through impactful asset management. Since 1994, the firm's
co-founders with others have sponsored 19 investment vehicles and
related co-investment vehicles through Rockpoint and a predecessor
firm and have raised approximately $30 billion in equity
capital commitments. As of March 31,
2023, Rockpoint's investment team with others has invested
or committed to invest in 498 transactions with a total peak
capitalization of approximately $80
billion (inclusive of fund equity, co-investor equity and
debt). To learn more, visit www.rockpoint.com.
Veris Residential Investor Contact
Anna Malhari
Chief Operating Officer
Veris Residential
investors@verisresidential.com
Veris Residential Media Contacts
Amanda Shpiner/Grace
Cartwright
Gasthalter & Co.
212-257-4170
veris-residential@gasthalter.com
Rockpoint Media Contact
Sarah
Kulka
Rockpoint
skulka@rockpoint.com
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SOURCE Veris Residential, Inc.