Gale International and Vornado Realty Trust Announce Joint Venture to Redevelop Boston's Filene's Property
10/19/2006 Category: Acquisitions
This press release was distributed by Gale International. For more information, please contact the company representatives listed on the release.
October 19, 2006...New York, New York...Gale International, one of the world's largest real estate development and investment companies, and Vornado Realty Trust (NYSE:VNO) today announced the signing of a joint venture agreement to redevelop the historic Filene's complex in Downtown Crossing, Boston, which Vornado had agreed to acquire from Federated Department Stores, Inc. The joint venture will purchase the property for approximately $100 million and is expected to close in the first quarter of 2007, subject to customary closing conditions. Mack-Cali Realty Corporation (NYSE: CLI) will co-venture Gale International's investment.
Current plans for the development include over 1.2 million square feet that will consist of office, retail, condominium apartments and a hotel. The project is subject to governmental approvals. Construction is expected to commence June, 2007.
The project is expected to be part of the largest historic renovation in the history of Boston. The renovation will create significant commercial, residential and retail space that will serve the fast growing downtown residential and business communities.
John B. Hynes, III, President and CEO of Gale International said, "This historic redevelopment will not only restore this site to its former glory but will transform and revitalize downtown Boston. As a born and bred Bostonian, I am enthusiastic to be part of downtown's resurgence."
Mitchell E. Hersh, President and CEO of Mack-Cali Realty Corporation said, "On behalf of Mack-Cali, I am excited to be a part of this signature project as we expand our presence in the Greater Boston Area and enhance our relationship with John Hynes and the Gale International team. As well, we are pleased to have the opportunity to work with Vornado."
Last month, Gale International and Morgan Stanley Real Estate acquired 23 acres of land in South Boston from News Corporation for $203.75 million. This is the largest undeveloped site adjacent to Boston's central business district.
Gale International orchestrated the most valuable commercial real estate deal in the Boston's history with the development and sale of the One Lincoln Street office tower for $705 million in 2005.
Gale International is a premier, international real estate development and investment company headquartered in New York with offices in Boston; Irvine; California; Seoul and New Songdo, South Korea. Gale International is dedicated to creating environments where people thrive. Commitment to quality and integrity is its core principle.
Abroad, Gale International is spearheading the massive $25 billion New Songdo City development. New Songdo City, the first ever U.S./South Korea real estate venture is thought to be the largest, private real estate venture in history.
Mack-Cali Realty Corporation is a fully-integrated, self-administered, self-managed real estate investment trust (REIT) providing management, leasing, development, construction and other tenant-related services for its class A real estate portfolio. Mack-Cali currently owns or has interests in 320 properties, primarily office and office/flex buildings located in the Northeast, totaling approximately 35.9 million square feet. The properties enable the Company to provide a full complement of real estate opportunities to its diverse base of approximately 2,600 tenants.
Vornado Realty Trust (NYSE:VNO) is the second largest publicly traded real estate investment trust in the United States.