April 11 Vornado Realty Trust, the owner
of office buildings and retail properties chiefly in New York
and Washington, said it would spin off its shopping center
business into a publicly traded real estate investment trust.
The company also named Jeffrey Olson, currently chief
executive of Equity One Inc, as CEO of the to be
Equity One, the American arm of Israel's largest real estate
investment company Gazit Globe Ltd, said in March that
Olson would not renew his contract when it ends in December.
The shopping center business comprises 81 strip shopping
centers and four malls including the Bergen Town Center in New
Jersey, Vornado said.
The new company's 2014 net operating income is estimated to
be about $200 million.
Vornado said it would retain for sale 20 small retail
Goldman, Sachs & Co and Morgan Stanley are acting as
Vornado's financial advisers, while Sullivan & Cromwell LLP is
its legal adviser.
Vornado's shares closed unchanged at $98.15 on the New York
Stock Exchange on Friday.
(Reporting By Sampad Patnaik in Bangalore; Editing by Sriraj