Brooklyn-based Forest City Ratner's ambitious plans for new projects looks like they'll be getting a big financial boost. The developer's Cleveland-based parent, Forest City Enterprises, has just inked a deal to sell a 49% stake in eight of its shopping malls nationwide for $425 million. The buyer is QIC, one of Australia's largest institutional investors.Beyond the Atlantic Yards towers in the pipeline, the article mentions the developer's bids for the Seward Park Urban Renewal Area and Nassau Coliseum, as well as vague plans for Queens and potential rehab of the Atlantic Center mall.
QIC is paying roughly $425 million for its stake in the eight malls... the deal will also generate $330 million in capital for Forest City Enterprises to reinvest elsewhere.
"Cash freed up here can be dedicated to growing Forest City Ratner's pipeline of projects in New York," said a source close to the company, but who noted that just how much money is something that remains to be determined.
It's not an illegitimate story, but it's not very skeptical, either. Why couldn't Crain's have asked whether the new capital could be used to fulfill the developer's obligation to build a deck over the blighted Vanderbilt Yard?