August 11, 2006
The spin is in
After last week's press release stating that Bruce Ratner was in talks with his Cleveland cousins to sell his share of Forest City Ratner to the parent company Forest City Enterprises, NoLandGrab outlined the difficulties that The Bruce was having in raising cash to lay the ground work for his Atlantic Yards proposal. We also pointed out that the press release was a little vague, an indication that the Cleveland-based real estate behemoth was still engineering the spin.
Since then, the deal has been finalized and the spin is in.
The Real Estate Observer, Bruce Ratner, Philanthropist?
Matthew Schuerman is reporting that Bruce needed some extra cash for philanthropic activities (Develop Don't Destroy Brooklyn is accepting donations):
"What happened was that Bruce was getting to the point in his life where he wants to do some philanthropy," Rich Moore, managing director at RBC Capital Markets, told us. "There is no liquidity to joint ventures because he has to sell a building in order to make any money."
The NY Sun, Ratner To Cash In on Stake in His Company
What are the chances that two media outlets coincidentally spoke to the same source? Sun reporter David Lombino quotes the same analyst who explains:
“It will be the same people, the same entities, the same decision makers. He will run FCR just as he ran it before,” Mr. Moore said. “Basically, this was more designed for Bruce personally to have more liquidity to make philanthropic donations.
“He is getting older, and it is time for him personally to do things a little differently,” Mr. Moore said.
NoLandGrab: It's practically as credible as, "the Congressman will be leaving office to spend more time with his family."
What the press hasn't yet pointed out, or found a source willing to go on record to say, is that Bruce's purchase of the money-sucking NJ Nets has gotten the project financials off to a bad start. To continue on, FCE took control of the entire upside, since (as evidenced by the status quo in non-recourse debt) they had already assumed all of the downside.
Posted by lumi at August 11, 2006 7:18 AM