Vornado Realty Trust, a real estate investment trust (REIT), may tap the commercial mortgage-backed securities (CMBS) market to raise capital to repay debt, according to Reuters report.

Vornado is expected to raise $600 million to $700 million from the CMBS market. The company intends to utilize the fund to refinance one of its existing properties. The strategic move is aimed at strengthening its balance sheet.

New York-based Vornado is one of the largest REIT in the U.S., engaged in acquiring, owning and leasing office properties, retail space and temperature-controlled logistics and refrigerated warehouses. Besides its properties, the company also has investments in other REITs, industrial buildings and Toys ‘R’ Us. Vornado Realty currently owns about 32.7% of Toys ‘R’ Us.

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