Vornado Completes Acquisition Of 37 Toys 'R' Us Stores

From Dow Jones Newswires

Vornado Realty Trust (VNO) completed the acquisition of 37 Toys 'R' Us stores in seven East Coast states, Texas and California for $171 million.

The Paramus, N.J. real estate investment trust said the acquisitions are the first phase of a previously announced agreement to purchase up to 44 stores.

The company expects to purchase six of the remaining stores by the end of the first quarter of 2007, subject to landlords' consent, where applicable, and customary closing conditions. The seventh store Vornado agreed to purchase was sold to a third party.

Vornado owns a 32.9% interest in Toys 'R' Us. Vornado's share of the gain recognized by Toys 'R' Us in this deal will be reflected as an adjustment to the company's basis in this investment and will not be recorded as income.

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