The US subsidiary of China’s Greenland Group announced this week that it has closed a joint venture deal to develop Atlantic Yards, a 22-acre residential and commercial real estate project in Brooklyn, New York.
Under the terms of the agreement, Shanghai-based Greenland has acquired 70 percent of the project from Forest City Enterprises, and will co-develop the project with the New York company. While a statement from the two companies made reference to “a capital contribution” Greenland to Forest City “for costs incurred to date” no details of project pricing were made public.
Closing on the Atlantic Yards Deal After 8 Months
The deal between the Chinese state-owned enterprise and American real estate developer Bruce Ratner’s Forest city was first announced in October last year, and includes both phase one and phase two of the Atlantic Yards project, but excludes the Barclays Center arena and an earlier residential tower.
In a statement marking the closing of the joint venture deal, David J. LaRue, Forest City President and CEO, said, “We welcome our new partners to Brooklyn and look forward to working with them to deliver this very important project to market. We have always believed strongly in Brooklyn and New York City and greatly appreciate Greenland’s shared vision for Atlantic Yards and on-going development in the borough.”
Forest City’s Ratner Enthused About Greenland Deal
Bruce C. Ratner, Executive Chairman of Forest City Ratner (as well as the principal owner of NBA team the New Jersey Nets) 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.” The Nets home court is at the Barclays Center, which is part of the Atlantic Yards project.
Atlantic Yards is Greenland’s second project in the United States, following its acquisition of the Metropolis project in Los Angeles last year. On the occasion of the deal closing, Zhang Yuliang, Chairman and President of Greenland Group, said, “We are confident that Atlantic Yards will become a world-class example of how to build housing for a wide-range of people, building on the history of New York as a place of promise for all.”
Greenland has been perhaps the most aggressive overseas investor among Chinese real estate companies, signing deals over the last two years for projects in Canada, Australia, Malaysia, South Korea, Spain, Thailand, and the UK, in addition to its US deals.
In China, Greenland has projects in more than 80 cities across 29 provinces.
In 2012, Greenland Group ranked 359th among Fortune Magazine’s list of the Top 500 global enterprises, 73rd among Top 500 Chinese companies, and number one among Chinese real estate enterprises. It achieved revenues of $36.6 billion and a total profit of approximately $2 billion in 2012.