The JBG-New York REIT Merger Has A 230k SF Loose End In PA
DC-based developer The JBG Cos' lone Pennsylvania property, the in-development King of Prussia Town Center, is not part of JBG's pending merger with New York REIT, and its future is uncertain.
The merger, which would create the public, $8.4B JBG Realty Trust, has been called lopsided and unfavorable to New York REIT investors. One of the possible reasons for such claims is JBG's holding back of 33 properties, including the 230k SF retail complex, according to the Philadelphia Business Journal.
A number of factors could reportedly be at play for why the Town Center was among the properties held back, including that it's not in the core regions of either JBG or New York REIT. Whatever the reason, the future of the property has yet to be determined.
The property, still under construction, could potentially be sold ahead of the merger, or left as a side project of some of the 21 principals at JBG Cos, who will own a 15% stake in the merged company. It's a large property to be so up in the air, but it seems like no part of this merger is quite finished yet. [PBJ]
