Forest City Acquired For $11.4 Billion

BEACHWOOD, OH — Forest City Realty Trust is being acquired for $11.4 billion, the company announced this week. Brookfield Asset Management will take control of the company once the deal is completed.

“Forest City has created a high-quality portfolio of operating and development assets over its 100-year history. We look forward to creating further value in these great assets on behalf of our limited partners," said Brian Kingston, CEO of Brookfield Property Group.

Forest City operates several iconic American properties, including the New York Times Building in New York City, the Yards in Washington, D.C., University Park at M.I.T. in Massachusetts, and 23 different properties in Ohio.

Both Forest City and Brookfield expect the acquisition to close in the fourth quarter of 2018. It's not yet clear what this transaction will mean for Forest City's employees or presence in the Cleveland-area.

Forest City's real estate portfolio includes large properties in the New York Metro area, San Francisco, Washington, D.C., and other American cities. In total, the company has something like 6.3 million square feet of office space, 2.3 million square feet of life science assets, 2.2 million square feet of retail space, and controls 18,500 multifamily units.

"Thanks to the skill and dedication of our associates, Forest City has made significant progress in our transformation over the last several years. We are pleased that Brookfield recognizes the success of our ongoing efforts to strengthen the business, the attractiveness of our office, apartment and mixed-use portfolio, the skill and dedication of our associates, and the significant opportunities to drive future growth embedded in our more than 18 million square feet of entitlements," said David LaRue, President and CEO of Forest City.

"We believe that this transaction will deliver an immediate cash premium to stockholders for their investment and represents the best path forward for our company and our stockholders," LaRue added.

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