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Veris Residential is being urged by Erez Asset Management, which owns nearly 5% of the company, to explore a sale that could offer shareholders a premium of up to 70%. The investor highlighted the success of its CIO in selling a previous REIT and encouraged a formal review of strategic alternatives with public disclosure. Despite Veris efforts in asset sales, debt reduction, and operational improvements, its shares remain below net asset value. Analysts note market conditions and interest rate reductions may support accelerated real estate transactions.
A major real estate investor is pushing Veris Residential, the owner of high-end rental properties, to consider putting itself up for sale, suggesting such a move could offer shareholders a premium of up to 70% over the current share price. Erez Asset Management, which holds close to 5% of Veris, has asked the Jersey City, New Jersey-based company to start a formal review of strategic alternatives and to make the process public and widely marketed, according to sources and documents reviewed by Reuters. Advertisement
The call for a sale comes several years after the family business of Jared Kushner, former President Donald Trump's son-in-law, had attempted to acquire Veris. Erez, led by former Goldman Sachs banker Bruce Schanzer, has stressed that Veris management and board should act decisively, especially as the company's three main competitors have recently initiated similar strategic reviews.
In a letter sent to Veris board chair and CEO in early December, Schanzer urged a comprehensive review of strategic options, accompanied by public disclosure and outreach to all qualified buyers. Schanzer has prior experience in successfully selling a real estate investment trust, having led Cedar Realty Trust, a shopping center REIT, for over a decade and completed its sale in 2022.
The letter estimated that shareholders could receive between USD 22 and USD 25 per share after transaction expenses, representing a 40-70% premium over Veris current trading price of around USD 16. Veris, which has an enterprise value close to USD 3 billion, has taken several steps in recent years, including selling assets, reducing debt, investing in capital improvements, and initiating operational initiatives. Despite this, its shares continue to trade at a significant discount to net asset value.
The company, previously known as Mack-Cali Realty Corp, had stated three years ago that it planned to initiate a strategic review to explore ways to unlock value for shareholders. Analysts suggest that recent market conditions, including a reduction in interest rates and increased investor interest in real estate assets, may make this an opportune time for Veris to pursue a sale.
Veris had also rejected unsolicited offers from Kushner Cos in late 2022, highlighting that interest from large investors has been persistent over the years. While a Veris representative has not provided a comment, Erez continues to press the company to act promptly on its earlier commitment to explore strategic options.
Source Reuters
5th Jun, 2025
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