Brooklyn Daily Eagle
Forest City Enterprises Inc., the parent company of Forest City Ratner Companies (FCRC), and Shanghai-based Greenland Group Co. announced on Monday that they have completed a definitive agreement for a joint venture to develop the 22-acre Atlantic Yards project.
The two companies announced a memorandum of understanding for the joint venture in October, a development that Eagle reported at the time.
The joint venture, which is expected to close in 2014, would cover both phase one and phase two of the project – excluding Barclays Center and the first housing tower, B2, which the Eagle also reported on recently. The two phases will include infrastructure, a permanent MTA railyard, a platform above the rail yard and future residential units.
The closing of the agreement is subject to necessary regulatory approvals, including the Committee on Foreign Investment in the United States (CFIUS) as well as the government of China.
Under the joint venture agreement, the Greenland Group would acquire 70 percent of the project and co-develop the project with Forest City, with both organizations sharing in all project costs in proportion to their ownership interests.
In addition, the Greenland Group would also make a capital contribution to reimburse Forest City for certain costs incurred to date. Forest City, through FCRC, would manage day-to-day activities on behalf of the joint venture.
Bruce C. Ratner, executive chairman of FCRC, said, “With this definitive agreement in place, we are a major step closer to delivering more expeditiously the affordable housing and other benefits of Atlantic Yards to Brooklyn. The Greenland Group’s interest and willingness to make this investment is an extraordinary vote of confidence in our city and state and we look forward to working with them as partners as we bring Atlantic Yards to completion, especially the 6,430 units of housing, including 2,250 units of affordable housing.”
Zhang Yuliang, chairman and president of Greenland Group, said “Like Forest City, we are committed to building the highest-quality housing using the best design and cutting-edge technology. To do this in Brooklyn, New York is a dream for all of us at Greenland. Brooklyn has fast become an international brand.”
Atlantic Yards would be Greenland Group’s second project in the United States. In July, Greenland Group purchased a site in downtown Los Angeles and plans to build a hotel and residential units. The Shanghai-based developer is the number one multiple-function real estate developer in China, with projects in more than 70 cities in 25 provinces.
Empire State Development President & CEO Kenneth Adams said, “Atlantic Yards is an important project that will bring thousands of jobs, affordable housing, open space and community facilities to Brooklyn. We look forward to welcoming Greenland Group to our effort of bringing this project and all of the public benefits it will create to completion.”