Forest City and Greenland Group sign memorandum of understanding to form joint venture for Atlantic Yards
Brooklyn-based Forest City Ratner Companies, LLC (“FCRC”), the New York-based subsidiary of Forest City Enterprises, Inc. (NYSE: FCEA and CEB), and Shanghai-based Greenland Group Co. announced today that their affiliates have signed a non-binding memorandum of understanding for a proposed joint venture to develop Atlantic Yards, a 22-acre residential and commercial real estate project in Brooklyn. The joint venture would cover both phase one and phase two of the project – excluding Barclays Center and the first housing tower, B2 – including infrastructure, a platform and residential units. The agreement is subject to negotiation and necessary regulatory approvals.
Under the proposed joint venture, Greenland Group would acquire 70 percent of the project, co-develop the project with FCRC, and share in the entire project costs going forward at the same percentage interest. FCRC would manage the day-to-day activities on behalf of the joint venture, which would develop the project consistent with the approved master plan.
Bruce C. Ratner, Executive Chairman of FCRC said, “We are delighted to have an opportunity to create a strong development and investment partnership with Greenland Group. We look forward to working together to bring the housing and other amenities of Atlantic Yards to fruition. Most importantly, this partnership would allow us to deliver the 6,400 units of housing, including 2,250 units of affordable housing, to market more expeditiously, which is important for Brooklyn and the entire city.”