Kushner Cos Makes Takeover Bid for Veris Residential to Acquire More Rental Units
Edited by: TJVNews.com
It appears that Jared Kushner’s company is seeking to a rival real estate company in a deal that is worth over $4 billion.
According to a report in the Wall Street Journal, a person close to the Kushner Cos told the publication that they are making an unsolicited bid for Veris Residential Inc, a competitor in the real estate industry. If the deal comes to fruition, Veris, which primarily owns rental apartments in New Jersey would be valued at approximately $.4.3 billion including debt, the person said.
The person in question also told the WSJ that Kushner’s family real estate company offered $16 a share for the real estate investment trust. On Thursday, the shares of Veris Residential , which was formerly known as Mack-Cali Realty Corp closed up .0.81% to $12.42, the WSJ reported.
The WSJ also viewed the disclosure of the bid in a letter to Veris which stated that Kushner Cos is proposing the offer for the takeover in part because the board of Veris failed to response to an offer to manage the properties that Veris owns, according to the report.
In the letter, Jared Kushner’s father, Charles Kushner wrote, “Our attempts at fruitful engagement with the board and management over the last several months have effectively been ignored,” the WSJ reported. The younger Kushner has achieved notoriety as the son-in-law of former President Donald Trump and served as a senior advisor to the nation’s 45th president. Jared Kushner is also responsible to the creation and success of the Abraham Accords which has brought peace and economic opportunities to Israel and the United Arab Emirates as well as Bahrain and other Arab countries in the Middle East.
Jared Kushner is no longer affiliated with his family’s real estate business. After his tenure at the White House, he founded a company known as Affinity Partners, which is an investment firm based in Miami, Florida where he and his family now reside.
The WSJ reported that prior to the financial crisis that engulfed the United States. Kushner Cos posited themselves as a formidable investor in New York real estate. Since that time, the company’s focus has shifted to creating a national portfolio of rental apartments.
Thus far, Kushner Cos owns approximately 21,000 apartments in 14 states, the WDJ report indicarewd. Should the takeover deal with Veris prove successful, that would mean that Kushner Cos would acquire an additional 7,700 units.
The person who is familiar with the takeover bid told the WSJ that Kushner has amassed close to a 5% stake in Veris. The letter said that Kushner was open to reaching a deal with Veris to manage its properties rather than buying the shares in the company that it doesn’t already own, the report added. The letter that was previously mentioned said that Kushner would be in position to improve on Veris’ management while cutting costs.