Shanghai’s Greenland Group takes 70% of New York Atlantic Yards project
Chinese Government development company Greenland Group Co Ltd, of Shanghai, entered the US property market in July by taking a $US1 billion stake in a Los Angeles project. On Friday it made an even more impressive investment, signing the memorandum of understanding for a 70% stake in a $US4 billion joint venture to develop the Atlantic Yards in New York. [Photo shows the first residential block].
The Atlantic Yards, an 8.8ha residential & commercial urban renewal project in Brooklyn, has been worked through since 2005 by Forest City Ratner Companies LLC, the New York-based subsidiary of Forest City Enterprises Inc, both headed by Bruce Ratner. The Ratner companies have spent $US500 million on the whole project so far.
The Ratner companies have opened the first development, the Barclays Centre, which will be excluded from the joint venture. Also excluded will be the first 32-storey 363-unit residential tower, under construction, with half its space reserved for low- to middle-income residents. The joint venture agreement is still subject to negotiation & regulatory approvals.
Greenland Group will be codeveloper and share in the entire project costs, though Ratner will be onsite manager. The masterplan includes 6400 residential units, of which 2250 are to be in the affordable category.
There will also be 23,000m² of retail & 31,000m² of office.
Forest City Enterprises has been looking for foreign investor support. In September it completed a joint venture with QIC Ltd, the Queensland state investment company, to acquire a 49% equity interest for $US435.6 million in a portfolio of 8 US malls valued at $US2.05 billion. Forest City said the transaction price represented a cap rate of 5.75% on forecast 2013 net operating income and would generate $US350 million of liquidity for the American company.
Greenland also invested in Melbourne last week, buying a site next to the Flemington racecourse from the Victoria Racing Club, and acquired a stake in a 3969m² Sydney site in March. The $A480 million Sydney development on Bathurst St, at the southern end of the cbd, is a joint venture with Brookfield Asset Management. Stage 1 will have 400 apartments on 60 levels and 11 parking floors.
In Los Angeles, it’s bought the California State Teachers’ Retirement System’s stake in the 2.56ha Metropolis project that will have hotels, offices, apartments & luxury homes. Construction is expected to start this year.
Wake up in the morning to a fresh cup of coffee – and a quick catch-up on what’s been going on round the world of property, around the world. I started Propbd on Q last year to run snippets of news through the day, and Propbd breakfast seemed the ideal way to offer you ideas on developments internationally to start the day.
As with Propbd on Q, items will be brief, with links to outside sources where quickly available, and with links to previous stories on this site. Many of the items will take the place of stories (which have frequently ended up uncompleted); some will link to stories the same day and some will be expanded into more detailed stories.