Now Owns More Than 70% Of Fourth-Largest Residential Real Estate
Brokerage in U.S.
MIAMI--(BUSINESS WIRE)--
Vector Group Ltd. (NYSE:VGR) today announced that its wholly-owned New
Valley LLC subsidiary has acquired an additional 20.59% interest in
Douglas Elliman Realty, LLC, which operates the largest residential
brokerage company in the New York City metropolitan area, from
Prudential Real Estate Financial Services of America, Inc. for a
purchase price of $60 million in cash. The acquisition increases Vector
Group's ownership position in Douglas Elliman from 50% to 70.59%.
Douglas Elliman is New York's largest residential brokerage with more
than 70 offices and more than 4,600 agents in New York City, Long
Island, the Hamptons, Westchester and Putnam Counties as well as South
Florida. Douglas Elliman was the fourth-largest residential real estate
brokerage in the U.S. in 2012 based on closed sales volume, according to
the REAL Trends broker survey, and is a strategic partner with
London-based Knight Frank LLP for residential business in all of its New
York and Florida markets. For the twelve-month periods ended September
30, 2013 and December 31, 2012, Douglas Elliman reported closed sales of
approximately $14.6 billion and $12.8 billion, respectively, of
residential real estate. It also owns other real estate services,
including Manhattan's largest residential property manager, Douglas
Elliman Property Management, and DE Title, a real property title
services company, as well as a 49.9% interest in DE Capital Mortgage,
which provides a wide range of financing products for the New York
residential market.
Howard M. Lorber, President and Chief Executive Officer of Vector Group,
said, "Vector Group is very pleased to acquire a meaningful, incremental
equity interest in the valuable Douglas Elliman business. As the leader
in the lucrative New York City metropolitan market as well as the
fourth-largest residential real estate brokerage company in the U.S.,
Douglas Elliman is well positioned to capitalize on its strong brand
name recognition and talented people to drive further growth. We are
excited about the many opportunities for this company in New York, South
Florida and other regions of the country to increase market share
through our offerings of best-in-class real estate sales, property
management and title and mortgage services."
Vector Group is a holding company that indirectly owns Liggett Group LLC
and Vector Tobacco Inc. and directly owns New Valley LLC, which owns a
controlling interest in Douglas Elliman Realty, LLC. Additional
information concerning the company is available on the company's
website, www.VectorGroupLtd.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. The
Company has tried, whenever possible, to identify these forward-looking
statements using words such as "anticipates", "believes", "estimates",
"expects", "plans", "intends" and similar expressions. These statements
reflect the Company's current beliefs and are based upon information
currently available to it. Accordingly, such forward-looking statements
involve known and unknown risks, uncertainties and other factors which
could cause the Company's actual results, performance or achievements to
differ materially from those expressed in, or implied by, such
statements.
REAL Trends is referenced in the above press release. REAL
Trends is a real estate consulting and communications company
considered to be a leading source of real estate news, trends, and
analysis on the residential brokerage industry.
Sard Verbinnen & Co
Paul Caminiti/Emily Deissler
212-687-8080
Source: Vector Group Ltd.
News Provided by Acquire Media
