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November 9, 2006
Forest City Completes Restructuring of New York City Portfolio
BusinessWire
From Forest City Enterprises's press release on the finanlization of the deal to acquire Bruce Ratner's shares of subsidiary Forest City Ratner:
Forest City Enterprises, Inc. (NYSE:FCEA) (NYSE:FCEB) today announced that it has completed the restructuring of the Forest City Ratner Companies portfolio. The portfolio is composed of Forest City Enterprises’ and Bruce C. Ratner’s combined interest in a total of 30 retail, office and residential operating properties, certain service companies and seven identified development opportunities, as well as the pursuit of new real estate opportunities, all in the greater New York City metropolitan area.
As previously announced, Bruce Ratner has contributed his ownership interests in the 30 operating properties, the service companies and participation rights in all future developments (except those named below) to a newly formed limited liability company. Forest City paid $46.3 million in cash and issued 3,894,000 units in the new limited liability company to Bruce Ratner.
...
Forest City and Bruce Ratner have agreed to terms and conditions under which they will value the seven existing development opportunities identified below when those developments stabilize. Forest City and Bruce Ratner will agree on a market value, and Ratner’s interest will be exchanged for additional units in the newly formed limited liability company at the then current FCEA market price or cash at Forest City’s option. These seven development opportunities are:
- Twelve MetroTech Center, 177,000-square-foot office building in Brooklyn
- New York Times Building, 1.5-million-square-foot office project in Manhattan
- Ridge Hill, 1.2-million-square-foot retail project in Yonkers
- East River Plaza, 547,000-square-foot retail center in Harlem
- Mill Basin, 125,000-square-foot retail center in Brooklyn
- Beekman, 683-unit residential building in lower Manhattan
- 80 DeKalb, 430,000-square-foot residential building in Brooklyn
But that doesn't mean that you won't have Bruce Ratner to kick around anymore:
Forest City will conduct its New York operations in the same manner as it has for the past 20 years. Bruce Ratner will continue to be president and chief executive officer of Forest City Ratner Companies. He will continue to lead the Atlantic Yards project, with responsibility for the successful execution of the planned redevelopment.
Posted by lumi at November 9, 2006 7:33 AM