Chinese state-owned developer to take 70 percent in NY's Atlantic Yards
(Reuters) - Chinese state-owned property developer Greenland Holdings Group signed a preliminary deal to take a majority stake in Brooklyn's Atlantic Yards, a 22-acre residential and commercial project being developed by a unit of Forest City Enterprises (FCEa.N).
Under a proposed joint venture, Shanghai-based Greenland will buy a 70 percent stake from Forest City Ratner Companies, which began the project and would continue to manage the development. The purchase price was not disclosed.
"This investment would allow us to move forward with one of the most ambitious affordable housing programs in our city's history," New York City Mayor Michael Bloomberg said in a statement released by Forest City Enterprises.
The joint venture would cover development of both phase one and phase two of the project, excluding the Barclays Center arena and the first housing tower, B2.
The deal was first reported by the Wall Street Journal earlier on Friday.
Atlantic Yards, situated above train yards belonging to the adjacent Atlantic Terminal, is a downtown Brooklyn redevelopment that will include about 6 million square feet of residential space, 247,000 square feet of retail, and about 336,000 square feet of office space.
The project is anchored by the Barclays Center, jointly owned by Forest City Ratner and Mikhail Prokhorov - the billionaire Russian owner of National Basketball Association team the Brooklyn Nets, which is based at the arena.
"This partnership would allow us to deliver the 6,400 units of housing, including 2,250 units of affordable housing, to market more expeditiously, which is important for Brooklyn and the entire city," Forest City Ratner Executive Chairman Bruce Ratner said in a statement.
The JV would be Greenland's second project in the United States, after the group purchased a 275,450-square-foot downtown Los Angeles site in July to build a hotel and residential units.
(Reporting By Neha Dimri and Soham Chatterjee in Bangalore; Editing by Supriya Kurane, Anthony Kurian)
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