New York REIT, JBG Cos. Agree to Merge

New York REIT Inc. and JBG Cos. have agreed to merge, forming an $8.4 billion real estate trust focused on the New York City and Washington, D.C., markets.

Under the terms of the deal, subject to approval by New York REIT shareholders, JBG equity holders would own 65.2% of the combined company, with New York REIT shareholders owning the remaining 34.8%, the companies said Wednesday.

The combined company, JBG Realty Trust, would be based in Chevy Chase, Md., and would be managed by JBG's management team. Specifically, W. Matt Kelly would become chief executive, David Paul president and chief operating officer, James Iker chief investment officer and interim chief financial officer roles, and Brian Coulter chief development officer.

Michael Happel, New York REIT chief executive and president, has agreed to serve as consultant over an unspecified transition period, the companies said Wednesday.

The deal, structured to be a tax-free transaction to New York REIT shareholders, is slated to close by year's end.

New York REIT, under pressure from activist investor Jonathan Litt, said last year that it was considering a sale.

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

May 25, 2016 19:05 ET (23:05 GMT)

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