NEW VALLEY CORP

NEW VALLEY CORP

Previous company name
WESTERN UNION CORP
Name change date
5/16/1991
Company Overview

Business Summary
New Valley Corporation (New Valley) is principally engaged in the real estate business. The Company owns a 50% interest in Douglas Elliman Realty, LLC, which operates a residential real estate brokerage company in the New York City metropolitan area. New Valley also holds, through its New Valley Realty Division, a 50% interest in Koa Investors LLC, which owns the Sheraton Keauhou Bay Resort & Spa in Kailua-Kona, Hawaii. In February 2005, the Company completed the sale of its two commercial office buildings in Princeton, New Jersey. As a result of the sale, the Company’s real estate leasing operations have been treated as discontinued operations. During the year ended December 31, 2004, Vector Group Ltd. owned 58.2% of New Valley’s common shares.
Description and history
New Valley Corporation (New Valley) is principally engaged in the real estate business. The Company owns a 50% interest in Douglas Elliman Realty, LLC, which operates a residential real estate brokerage company in the New York City metropolitan area. New Valley also holds, through its New Valley Realty Division, a 50% interest in Koa Investors LLC, which owns the Sheraton Keauhou Bay Resort & Spa in Kailua-Kona, Hawaii. In February 2005, the Company completed the sale of its two commercial office buildings in Princeton, New Jersey. As a result of the sale, the Company’s real estate leasing operations have been treated as discontinued operations. During the year ended December 31, 2004, Vector Group Ltd. owned 58.2% of New Valley’s common shares.

Douglas Elliman Realty, LLC

Douglas Elliman Realty is engaged in the real estate brokerage business through its subsidiaries Douglas Elliman and Prudential Douglas Elliman Real Estate. In 2004, the two-brokerage companies have 54 offices with more than 2,800 real estate agents in the metropolitan New York area. Douglas Elliman specializes in high-end sales and rental marketplaces. Douglas Elliman has 12 New York City offices, with more than 1,100 real estate agents. Prudential Douglas Elliman Real Estate, headquartered in Huntington, New York, is a residential brokerage company on Long Island with 42 offices and more than 1,700 real estate agents. During 2004, Prudential Douglas Elliman Real Estate closed approximately 7,975 transactions. Prudential Douglas Elliman Real Estate serves approximately 250 communities from Manhattan to Montauk.

Douglas Elliman and Prudential Douglas Elliman Real Estate both act as a broker or agent in residential real estate transactions. In performing these services, the companies have historically represented the seller, either as the listing broker, or as a co-broker in the sale. In acting as a broker for the seller, their services include assisting the seller in pricing the property and preparing it for sale, advertising the property, showing the property to prospective buyers, and assisting the seller in negotiating the terms of the sale and in closing the transaction. The two companies also offer buyer brokerage services. When acting as a broker for the buyer, their services include assisting the buyer in locating properties that meet the buyer’s personal and financial specifications, showing the buyer properties, and assisting the buyer in negotiating the terms of the purchase and closing the transaction. The companies may, in certain circumstances, act as a selling broker and as a buying broker in the same transaction.

The two-brokerage companies also offer relocation services to employers, which provide a variety of specialized services primarily concerned with facilitating the resettlement of transferred employees. These services include sales and marketing of transferees’ existing homes for their corporate employer, assistance in finding new homes, moving services, educational and school placement counseling, customized videos, property marketing assistance, rental assistance, area tours, international relocation, group move services, marketing and management of foreclosed properties, career counseling, spouse/partner employment assistance and financial services. Clients can select these programs and services on a fee basis according to their needs. The Company has an agreement with Prudential Relocation Services, Inc. to provide relocation services to the Prudential network.

Preferred Empire Mortgage Company, an affiliated company in which Prudential Douglas Elliman Real Estate holds a minority interest, is engaged in the residential mortgage brokerage business, which involves the origination of loans for one- to four-family residences. Preferred Empire primarily originates loans for purchases of properties located on Long Island and in New York City. Approximately one-half of these loans are for home sales transactions in which Prudential Douglas Elliman Real Estate acts as a broker.

Douglas Elliman Realty is also engaged in the management of cooperatives, condominiums and apartments though it’s subsidiary, Residential Management Group, LLC, which conducts business as Douglas Elliman Property Management. Residential Management Group provides full-service, third-party fee management for approximately 250 properties, representing approximately 45,000 units in New York City, Nassau County, Northern New Jersey and Westchester County. Among the notable properties managed by the Company in 2004, are the Worldwide Plaza, London Terrace and West Village Houses buildings in New York City. In addition to the management of its client’s properties, Residential Management Group provides ancillary services, such as mortgage brokerage services, including resale and financing arrangements for cooperative and condominium corporations through third-party financial institutions, leasing brokerage services, and construction management.

The Company competes with Century-21, ERA, RE/ MAX, and Coldwell Banker.

Business Line

Subsidiary
CDSI HOLDINGS INC.
Advisor
PRICEWATERHOUSECOOPERS LLP
IPO date
6/9/1999
US SIC Code
6512
Company Address
32nd Floor
100, S.E. Second Street
City province or state postal code
33131, MIAMI, FL
Phone: +1 305 579 8000
Fax: +1 305 579 8001
Country address: UNITED STATES OF AMERICA
Website url: www.newvalley.com