Vornado agrees to exchange of redeveloped Virginia mall

|About: Vornado Realty Trust (VNO)|By:, SA News Editor

Following the completion of the redevelopment of Springfield (VA) Town Center, Vornado (VNO) will transfer ownership to Pennsylvania REIT (PEI) in exchange for $340M in cash and $125M of PREIT operating partnership units.

Don't call it a sale - the deal is designed as a tax-free exchange.

The redevelopment is expected to be completed in Q4, with closing no later than the end of 2015 Q1.

Vornado will record a non-cash impairment loss of about $20M this quarter.