8/2/2016 | By Sarah Borchersen-Keto
New York REIT, Inc. (NYSE: NYRT) and private real estate firm The JBG Companies announced Aug. 2 that they have agreed to terminate their previously announced merger due to a lack of shareholder support for the deal.
Instead, New York REIT will adopt a plan of selling individual assets, the company said.
“Investors were clear in their preference for a liquidation to generate near-term cash,” said Matt Kelly, managing partner of JBG.
New York REIT President and CEO Michael Happel said the decision to begin selling individual assets “is the best way to realize value for our stockholders, and in a manner that does not preclude a sale of the company should a compelling offer be made.”
New York REIT said May 25 that it had agreed to merge with JBG in a transaction that would have created an $8.4 billion REIT focused on office and mixed-use properties in New York and Washington, D.C.
In afternoon trading, shares in New York REIT were trading at $9.91, a 4.5 percent gain on the previous day’s close of $9.48.