NEW YORK CITY—Forest City Enterprises and Greenland USA, a subsidiary of Shanghai-based Greenland Group Co. announced today that they have closed on the previously announced joint venture to develop the Atlantic Yards project in Brooklyn.
Under the joint venture agreement, Greenland USA has acquired 70% of the project and will co-develop the project with Forest City. Company officials say that both organizations will share in all project costs going forward in proportion to their ownership interests. In addition, Greenland USA will make an unspecified capital contribution to reimburse Forest City for certain costs incurred to date. No financial terms of the deal were reported.
Forest City, through its New York-based subsidiary, Forest City Ratner Companies, and Greenland USA will co-manage day-to-day activities and will develop the project consistent with the approved master plan.
The joint venture deal covers both phase one and phase two of the project, excluding the completed Barclays Center and the first residential tower, B2 BKLYN. The partnership includes the development of the infrastructure, a permanent MTA rail yard, a platform above the rail yard, future residential units and future commercial high-rise development. The Committee on Foreign Investment in the United States (CFIUS) as well as the government of China have approved the joint venture.
Zhang Yuliang, chairman and president of Greenland Group, says of the deal, "As a company, we believe in a shared sense of community. We're very excited to join Forest City in Brooklyn. Together, we're confident we can expedite the construction of Atlantic Yards and build a new community within this extraordinary borough. New York City, like many great urban areas, is working diligently to create housing for a diverse group of people. This is something that we are excited to be part of. We are confident that Atlantic Yards will become a world-class example of how to build housing for a wide-range of people, building on the history of New York as a place of promise for all."
On Friday, Forest City Ratner announced an agreement with New York State, to expedite the construction of affordable housing at Atlantic Yards.
Commenting on the closing of the joint venture partnership with Greenland Group, Bruce C. Ratner, executive chairman of FCRC, says, "Greenland'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 we bring Atlantic Yards to completion, especially the 6,430 units of housing, including 2,250 units of affordable housing."
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
