« An ACORN development deal lives on | Main | Catching up on the ACORN story: Brian Lehrer, Politico, City Room »
February 23, 2010
FOREST CITY ENTERPRISES PRESS RELEASE: Forest City Announces Joint Venture with Health Care REIT for University Park Life Science Properties
Forest City Enterprises announced a joint venture today that seems aimed more at generating some cash than anything else. From the release:
Forest City Enterprises, Inc. and Health Care REIT, Inc. today announced the creation and first-stage closing of a new $668 million joint venture in Forest City's mixed-use University Park project in Cambridge, Mass.
Under the terms of the joint venture, Health Care REIT will acquire a 49 percent interest in the seven University Park life science properties owned solely by Forest City. For its share of the joint venture, Heath Care REIT will invest $170 million in cash and the joint venture will assume $320 million of secured debt on the seven buildings. Subsidiaries of Forest City will retain 51 percent ownership in the properties and will serve as asset and property manager for the joint venture.
..."We're thrilled to launch this new venture with Health Care REIT," said Charles A. Ratner, Forest City president and chief executive officer. "Today's announcement demonstrates both our ability to create liquidity by monetizing elements of our portfolio, and the intrinsic value in that portfolio."
Forest City's updated "safe harbor language" includes this potential pitfall:
"liquidity risks we could face if we do not close the transaction with Onexim Group to create a strategic partnership for our Brooklyn Atlantic Yards project...."
Posted by eric at February 23, 2010 6:12 PM