« Banks, Basketball, and Property Rights | Main | Russian billionaire Mikhail Prokhorov making smart moves as he starts rebuilding New Jersey Nets »

April 2, 2010

In Forest City conference call, Atlantic Yards cited as example of FY 2009 milestones

Atlantic Yards Report

A relieved and optimistic--but still cautious--set of Forest City Enterprises (FCE) executives held their quarterly (and annual) conference call yesterday with investment analysts, and Atlantic Yards was highlighted as an emblematic success of the past fiscal year, which ended 1/31/10.

Moreover, in the Q&A segment, unlike in previous calls, the analysts had no questions about Atlantic Yards. From their perspective, it seems, the project is a done deal.

Leading off

FCE CEO Chuck Ratner led off by stating that "we feel a lot better" than they did a year ago and even "three short months ago."

He cited a number of success in the past three months, including the closing of a new revolving line of credit, completed debt exchanges, and "the master closing at Atlantic Yards in Brooklyn and [we] held a groundbreaking for the Barclays Center arena in that project."

AY as example

He singled out "Atlantic Yards alone as one example of what we were able to accomplish in 2009 and early 2010," citing:

  • they "successfully addressed a major land loan" [with Gramercy Capital]
  • "tax-exempt bonds... have been issued at an attractive rate"
  • "lawsuits opposing the project are almost behind us"
  • they "identified a great partner [Mikhail Prokhorov] who plans to take a majority interest [80%] in the team and a significant interest [45%] in the arena"
  • they began construction on the arena
  • and executed the master closing

"It was quite a to-do list, but our New York team, led by Bruce Ratner and Joanne Minieri, achieved all of those milestones," Ratner said.


Posted by eric at April 2, 2010 12:01 PM