April 6, 2018 / 10:53 PM / 6 months ago

Vornado has 'handshake' deal to sell stake in 666 Fifth Avenue to Kushner Cos

(Reuters) - The chairman of Vornado Realty Trust (VNO.N) said on Friday it has a “handshake” agreement with Kushner Companies to sell its minority interest in a Manhattan office tower on Fifth Avenue.

FILE PHOTO: A building at 666 Fifth Avenue, owned by Kushner Companies, rises above the street in New York, U.S., March 30, 2017. REUTERS/Lucas Jackson

Vornado, one of New York’s largest property owners which has a 49.5 percent stake in the office portion of 666 Fifth Avenue, did not disclose the terms of the potential deal.

“I believe we now have a handshake to sell our interest to our partner at a price which will repay our investment plus a mezzanine type return,” Vornado’s Chairman Steven Roth wrote in a letter to shareholders.

In February, Vornado said it would sell its minority stake in the building, which is controlled by Kushner Cos - the real estate company once headed by President Donald Trump’s son-in-law, Jared Kushner.

Kushner in January 2017 sold his interests in Kushner Cos to a family trust as part of an effort to avoid conflicts of interest. The building has faced scrutiny as a series of foreign investors, including a former Qatari prime minister, considered investing in its planned redevelopment.

Reporting by Yashaswini Swamynathan in Bengaluru

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