Veris Residential confirms Kushner Cos.’ hostile bid

Jessica Perry//October 21, 2022

Veris Residential confirms Kushner Cos.’ hostile bid

Jessica Perry//October 21, 2022

Veris Residential Inc. confirmed Friday it received unsolicited proposals from Kushner Cos. to externally manage the multifamily-focused REIT or to acquire the company for $16 per share.

According to Kushner Cos., that price represents a 30% premium to Veris’ last closing price “which we believe has been temporarily inflated by recent insider purchases of Veris stock.”

As of press time, Veris was trading at $12.42.

In its announcement, the board of directors for Jersey City-based company said it is evaluating Kushner Cos.’ proposal “in consultation with its financial and legal advisors – and will respond to these proposals in due course, just as it has carefully evaluated and responded to all other proposals Kushner Cos. has put forth to date.”

Veris Residential, the former Mack-Cali Realty Corp., is a self-described environmentally and socially conscious company. As part of a transition to that forward-thinking focus centered in the multifamily sector, the firm recently announced it was on course to have 98% of its net operating income represented by the subset – up from 39% at the end of the first quarter of 2021, with the closing of the company’s $346 million sale of 101 Hudson St. and the pro-forma for the stabilization of its Haus25 residential community.

Based in New York City, Kushner Cos.’ biggest presence is in the Garden State.

In an Oct. 20 letter to the Veris board of directors Chairman Charles Kushner wrote:

“Kushner is a long term focused, multigenerational real estate investor, not a short-term hedge fund or activist. We have amassed a stake of 4.5 million shares in Veris over the past five months in the belief that Veris owns a high-quality real estate portfolio with substantial long-term potential which is, unfortunately, being mismanaged.”

“Based upon discussions with financing sources, Kushner has access to all financing necessary to consummate this transaction,” he adds.

For its part, Veris said in its announcement that “[c]onsistent with its fiduciary duties, the board will determine the best path forward with the interests of maximizing value for all Veris Residential shareholders in mind.”