Forest City Enterprises,. and Greenland USA, a subsidiary of Shanghai-based Greenland Group Co., have closed on a joint venture to develop Atlantic Yards, the 22-acre real estate project in Brooklyn.
The two companies had announced the execution of a definitive agreement for the joint venture in mid-December 2013.
The JV covers both phase one and phase two of the project — excluding Barclays Center and the first residential tower, B2 BKLYN — including 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.
Under the agreement, Greenland USA has acquired 70 percent of the project and will co-develop it with Forest City, with both organizations sharing in all project costs going forward in proportion to their ownership interests.
In addition, Greenland USA will make a capital contribution to reimburse Forest City for certain costs incurred to date. Forest City, through its New York-based subsidiary, Forest City Ratner Companies (FCRC) in partnership with Greenland USA, will co-manage day-to-day activities and will develop the project consistently with the approved master plan.
Bruce C. Ratner, executive chairman of FCRC said, “We are so proud to welcome Greenland USA as our partner for Atlantic Yards. Their commitment to the project – and to Brooklyn – was clear from day one.
“They have already been great in their willingness to close on this important partnership in a record period of time, recognizing that together we can bring the promise of Atlantic Yards to market faster and more efficiently. 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.”