Forest City Ratner and Greenland Group Agree to Form JV for 22-Acre Mixed Use Project
Shanghai-based Greenland Group Co. has signed an agreement with Brooklyn, NY-based Forest City Ratner Companies, LLC, to acquire a 70% interest in Atlantic Yards, a 22-acre residential and commercial real estate
project in Brooklyn.
The companies signed a non-binding memorandum of understanding to form a proposed joint venture to develop the first two phases of the project, including infrastructure, a platform and residential units. The venture, which is still subject to negotiation, does not include Barclays Center and the project's first housing tower, B2.
Greenland Group, a state-owned Chinese developer, and Forest City Ratner would co-develop the project and equally share costs for the entire project. Forest City Ratner, headed by Executive Chairman Bruce C. Ratner, would manage the day-to-day activities.
"Most importantly, 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," said Bruce Ratner.
Zhang Yuliang, chairman and president of Greenland Group, noted that Forest City has played a key role in revitalizing Brooklyn and other communities across the country. Atlantic Yards would be Greenland’s second project in the United States. In July, Greenland Group purchased a 275,450-square-foot site in downtown Los Angeles and plans to build a hotel and residential units.
"Brooklyn has become an international brand because it symbolizes how the old and the new can exist together, creating a dynamic environment for people to live and work," Zhang said.
Atlantic Yards would be Greenland Group’s second U.S. project. In July, Greenland purchased a 275,450-square-foot site in downtown Los Angeles in a $1 billion project with California State Teachers’ Retirement System (CalSTRS) to build a hotel and residential units in $1 billion investment.
Greenland is the top mixed-use real estate developer in China, with projects in more than 70 cities in 25 provinces in China. It is noted for kits high-rise buildings, of which four are among the 10 tallest buildings in the world.