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Atlantic Yards/Pacific Park FAQ, timeline, and infographics (pinned post)

Greenland Holding's huge loss on Atlantic Yards/Pacific Park: end-of-2023 audit shows firm recognized $390 million impairment (loss of value).

This is the first of three articles on Greenland USA finances related to Atlantic Yards/Pacific Park. The second concerned what Greenland paid Forest City in the 2018 ownership reshuffle, and what happened to Site 5. The third concerned Forest City's giving up its shares in the B4 tower and future Site 5 project.

An audit of Greenland Holding Group, the Shanghai-based parent of Greenland USA, indicates that, as of the end of 2023, the firm recognized an impairment--a loss in value--of nearly $391 million from its investment in Atlantic Yards/Pacific Park.

That indicates the impact of project delays and helps explain why there's been no revenue, or cushion, to pay back outstanding loans, now facing foreclosure, under the EB-5 investor visa program. 

Though the impairment is substantial, it's little more than half of the $732 million in impairments, as detailed below, suffered by original developer Forest City Enterprises/Forest City Realty Trust on the project.

The new total comes from a machine translation of this 2023 audit report, by Daxin Certified Public Accountants, dated April 30, 2024, according to its URL. (I asked Greenland for comment on the numbers, but didn't hear back.)

Go to the 60th page of the PDF (marked p. 59), from which I've excerpted the original, below. I then put it through Google Translate. Atlantic Yards/Pacific Park is the last line.

The chart addresses Development Cost.

From audit report


From audit report, machine translation

Looking more closely

Because the columns are misaligned on the machine translation, let's go left to right regarding Atlantic Yards.

Start Date: 2014

Estimated completion date: 2035 

Estimated total investment: ¥44,396,800,000 (USD $6.126 billion)

Beginning balance: ¥6,460,415,559.56 (USD $891.4 million)

End of period balance: ¥7,069,316,109.77 (USD $975.4 million)

Regarding those balances, I assume that indicates the amount spent so far, which would suggest that in 2023 Greenland spent "only" $84 million, perhaps on debt, planning, and professional services. 

It had to include $11 million in an annual payment to the Metropolitan Transportation Authority for development rights over the Vanderbilt Yard.

Regarding the completion date, well, 2035 is the "outside date" currently permitted by project documents, but any developer--whether Greenland or a successor--likely would seek an extension.

About the impairment

The last box refers to an "end of period impairment provision": ¥2,839,658,714.21. That converted to USD $390.4 million, as of this morning.

An impairment refers to a loss in value, which, according to this source, can mean a significant decrease in the asset's price, a significant adverse change in business climate, costs higher than expected, operating losses, and a significant adverse change in the way an asset is being used.

So it's not a formal loss based on a transaction, but a recognition that the property is not worth what it should be. After all, Greenland, rather than being able to build, has been stalled, so costs mount, and interest rates rise.

Moreover, the developer owes $286 million to EB-5 investors, who were given collateral in the form of development rights to six railyard towers (B5-B10).


If the oft-postponed foreclosure auction for those towers proceeds or is resolved in another way, Greenland could be out of the picture, except for the parcel known as Site 5, catercorner to the arena.

Forest City's impairments

In 2014, Greenland acquired 70% of the project going forward, at what seemed to be a discount, paying only $200 million, well below the $383 million in Forest City’s proportional costs.

Given that transaction, in February 2014, Forest City announced an impairment on Atlantic Yards of $242.4 million ($148.4 million net of tax). 

In February 2015, Forest City announced a pre-tax impairment of $146 million on the modular tower (B2, later 461 Dean St.), including $38.7 million for the ill-fated modular factory.

In November 2016, Forest City announced a further impairment of $299.3 million "related to our equity method investment in the Greenland Joint Venture."

In November 2017, Forest City announced an impairment of $44.3 million related to the sale of B2.

That totals $732 million.

About the EB-5 debt

In the Greenland audit, go to the 217th page of the PDF, marked p. 216, for information on the overdue debt to EB-5 investors:


The machine translation states:
Among the current long-term loans of American Commercial Holdings (Pacific Park Project in New York), the EB-5 loans to AYB Funding 100, LLC and AYB Funding 200, LLC are due on June 30, 2023 (a total of US $285 million, valued at RMB 2 billion), and the loan collateral is the platform land and B5-B10 development rights. The lender officially initiated the asset disposal procedure in January 2024. After negotiation with the lender and a second extension, the deadline is currently extended to April 30, 2024. As of the reporting date, the Group has actively taken measures to deal with the risks brought about by the possible disposal of the asset.

Note that my calculation has been closer to $286 million, so either I'm slightly wrong or they're rounding off.

It's not clear what "measures to deal with the risks" have been taken.

Where the EB-5 money went

In a June 30, 2014 LLC agreement between Greenland and original developer Forest City, Greenland agreed to provide the joint venture with $250 million to help pay for the new railyard within the MTA's Vanderbilt Yard.

However, it was possible to reduce that "Standby GL Credit Facility" by new financing under the EB-5 investor visa program.

The joint venture raised $249 million for "Atlantic Yards II" and $100 million for "Atlantic Yards III." Most of that debt has not been repaid. Much of that money, apparently, went into the railyard.

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