CLEVELAND, Feb. 16, 2018 /PRNewswire/ -- Forest City
Realty Trust, Inc. (NYSE: FCEA) today announced the closing of the
sale of its interest in The Mall at Robinson, a 900,000-square-foot regional mall
in Pittsburgh, PA, to
QIC.
The sale is the fourth mall divestiture for Forest City to close as part of a previously
announced 10-mall portfolio transaction with QIC. Sales of
Forest City's interest in two
additional malls to QIC are expected to close in early 2018.
After those sales are completed, the remaining four malls in the
portfolio are expected to be transferred to QIC under a fixed-price
option and to close as Forest City
secures replacement assets or other opportunities into which it
will redeploy its ownership stake in those malls.
"This closing furthers the mutually beneficial portfolio-level
transaction with our partner, QIC," said David J. LaRue, Forest
City president and chief executive officer. "The
dispositions of our regional malls to QIC, and our specialty retail
centers to Madison International Realty, are a key component of
Forest City's strategic
transformation as a focused, urban placemaker with a strong balance
sheet and an exceptional portfolio of multifamily, office and
mixed-use assets in great markets."
As previously disclosed, the overall transaction values the 10
regional malls at approximately $3.175
billion, or $1.55 billion at
Forest City's share.
The two malls expected to transact in early 2018 are
Westchester's Ridge Hill in Yonkers,
NY, and The Shops at Wiregrass in Tampa, FL. The final four malls in the
portfolio, which are expected to transact as Forest City secures replacement assets, are
Victoria Gardens in Rancho Cucamonga,
CA; Galleria at Sunset in Henderson, NV; Promenade Temecula in
Temecula, CA; and Short Pump Town
Centre in Richmond, VA.
About Forest
City
Forest City Realty Trust, Inc. is a NYSE-listed
national real estate company with $8.1
billion in consolidated assets. The Company is principally
engaged in the ownership, development, management and acquisition
of commercial and residential real estate throughout the United
States. For more information, visit www.forestcity.net.
Safe Harbor Language
Statements made in this news
release that state the company's or management's intentions, hopes,
beliefs, expectations or predictions of the future are
forward-looking statements. The company's actual results could
differ materially from those expressed or implied in such
forward-looking statements due to various risks, uncertainties and
other factors. Risks and factors that could cause actual results to
differ materially from those in the forward-looking statements
include, but are not limited to, the uncertain outcome, impact,
effects and results of the company's Board of Directors' review of
operating, strategic, financial and structural alternatives, the
company's ability to carry out future transactions and strategic
investments, as well as the acquisition related costs,
unanticipated difficulties realizing benefits expected when
entering into a transaction, the company's ability to qualify or to
remain qualified as a REIT, its ability to satisfy REIT
distribution requirements, the impact of issuing equity, debt or
both, and selling assets to satisfy its future distributions
required as a REIT or to fund capital expenditures, future growth
and expansion initiatives, the impact of the amount and timing of
any future distributions, the impact from complying with REIT
qualification requirements limiting its flexibility or causing it
to forego otherwise attractive opportunities beyond rental real
estate operations, the impact of complying with the REIT
requirements related to hedging, its lack of experience operating
as a REIT, legislative, administrative, regulatory or other actions
affecting REITs, including positions taken by the Internal Revenue
Service, the possibility that the company's Board of Directors will
unilaterally revoke its REIT election, the possibility that the
anticipated benefits of qualifying as a REIT will not be realized,
or will not be realized within the expected time period, the impact
of current lending and capital market conditions on its liquidity,
its ability to finance or refinance projects or repay its debt, the
impact of the slow economic recovery on the ownership, development
and management of its commercial real estate portfolio, general
real estate investment and development risks, litigation risks,
vacancies in its properties, risks associated with developing and
managing properties in partnership with others, competition, its
ability to renew leases or re-lease spaces as leases expire,
illiquidity of real estate investments, its ability to identify and
transact on chosen strategic alternatives for a portion of its
retail portfolio, bankruptcy or defaults of tenants, anchor store
consolidations or closings, the impact of terrorist acts and other
armed conflicts, its substantial debt leverage and the ability to
obtain and service debt, the impact of restrictions imposed by the
company's revolving credit facility, term loan and senior debt,
exposure to hedging agreements, the level and volatility of
interest rates, the continued availability of tax-exempt government
financing, its ability to receive payment on the notes receivable
issued by Onexim in connection with their purchase of our interests
in the Barclays Center and the Nets, the impact of credit rating
downgrades, effects of uninsured or underinsured losses, effects of
a downgrade or failure of its insurance carriers, environmental
liabilities, competing interests of its directors and executive
officers, the ability to recruit and retain key personnel, risks
associated with the sale of tax credits, downturns in the housing
market, the ability to maintain effective internal controls,
compliance with governmental regulations, increased legislative and
regulatory scrutiny of the financial services industry, changes in
federal, state or local tax laws and international trade
agreements, volatility in the market price of its publicly traded
securities, inflation risks, cybersecurity risks, cyber incidents,
shareholder activism efforts, conflicts of interest, risks related
to its organizational structure including operating through its
Operating Partnership and its UPREIT structure, as well as other
risks listed from time to time in the company's SEC filings,
including but not limited to, the company's annual and quarterly
reports.
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SOURCE Forest City Realty Trust, Inc.