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Feb 23 (Reuters) - Veris Residential VRE.N has agreed to be taken private by a consortium led by Affinius Capital and Vista Hill Partners in an all-cash deal worth $3.4 billion, including debt, the U.S. multifamily real estate investment trust said on Monday.
The deal follows a five‑year push to exit office assets and streamline the business, CEO Mahbod Nia said. Veris shareholders will get $19 for each share they hold, representing a premium of 13.3% to its last closing price. Its shares rose to $18.88 in premarket trading.
The transaction will be financed through equity and debt, including a $2.08 billion bridge loan, Veris said, adding that it will suspend its dividend after paying it for the first quarter ending March 31.
Private equity firms and real estate consortiums are targeting REITs for take-private deals, capitalizing on discounted share prices and stable assets. Kennedy-Wilson KW.N had this month agreed to be taken private by its CEO William McMorrow and Fairfax Financial FFH.TO for about $1.5 billion.
Earlier this month, Erez Asset Management, which holds nearly 5% of Veris, had asked the company to consider a sale and review of strategic options.
Veris, formerly Mack‑Cali Realty, has made progress through asset sales, debt reduction and operational improvements, but its shares still trade well below the value of its underlying properties.
In late 2022, Veris rejected unsolicited bids from Kushner Cos, the family business associated with President Donald Trump's son-in-law Jared Kushner.
The transaction is expected to close in the second quarter of 2026, subject to approval by Veris shareholders and other customary closing conditions.
J.P.Morgan and Morgan Stanley are acting as financial advisers to Veris, while Weil, Gotshal & Manges and Seyfarth Shaw are its legal advisers.
Affinius Capital is an institutional real estate investment manager and Vista Hill Partners specializes in targeted real estate investment.
(Reporting by Apratim Sarkar; Editing by Vijay Kishore)
((Apratim.Sarkar@thomsonreuters.com;))