The Jersey City-based multifamily landlord agreed to be acquired by an investor consortium led by Affinius Capital, alongside Vista Hill Partners, in an all-cash deal valued at $3.4 billion, including debt. The price of $19 per share represents a 23 percent premium over the company’s unaffected share price earlier this month.
The transaction, announced Monday marks the end of Veris’ five-year transition away from its offices to a Class A multifamily platform concentrated in the Northeast. Once a hybrid office and apartment owner formerly known as Mack-Cali, the real estate investment trust has spent years shedding suburban office assets, slimming down its balance sheet and rebranding in an effort to regain investor confidence.
The buyers group supports this bet. Affinius, which has approximately $61 billion in assets under management, is an active multifamily investor across the country. Vista Hill is led by Bradford Klatt, co-founder of Roseland Property Company, and Jonathan Kushner of Kushner Real Estate Group. The partners are expected to finance the deal with a mix of equity and debt, including a $2.08 billion senior secured bridge loan.
Veris’s board unanimously approved the sale after what the company described as a comprehensive strategic review process, which also included approaching financial sponsors, sovereign wealth funds and pension investors. Bow Street, which owns about 5.6 percent of the company’s shares, agreed to vote in favor of the merger.
The deal is expected to close in the second quarter, subject to shareholder approval and customary closing conditions. After that, Veris’s shares will be delisted from the New York Stock Exchange.
The company reported fourth-quarter earnings on Monday but scrapped its planned earnings call and declined to issue guidance for 2026, citing the pending transaction. The company plans to pay its regular first-quarter dividend and then suspend payouts.
The deal was announced just weeks after pressure from activist investors mounted against Veris’s state of affairs.
Erez Asset Management, which owns a 5 percent stake in the company, urged Veris to put itself up for sale or undergo a review for strategic alternatives. Erez estimated that “shareholders could realize approximately $22-$25 per share in a sale, after transaction costs,” a point this deal appears to miss.
Three years ago, Veris announced plans for a future overhaul, following the company’s rebranding and a failed unsolicited takeover bid from Kushner Companies.
The takeover attempt quickly turned ugly; at one point Kushner accused Veris of misleading the public. Kushner ultimately dropped the takeover bid.
Read more
Activist investor puts pressure on Veris Residential to sell
Kushner destroys Veris’ leadership to increase takeover bid
Prime Group raises $156 million for self-storage portfolio
#Affiniusled #group #Veris #private #billion #deal