Forest City closes acquisition of partner's interest in University Park life-science office properties
CLEVELAND, June 23, 2015 /PRNewswire/ -- Forest City Enterprises, Inc. (NYSE: FCEA and FCEB) today announced that it has closed its previously announced share purchase and redemption agreement to acquire Health Care REIT's 49 percent equity interest in seven life-science office properties and two parking facilities at University Park at MIT, a mixed-use life-science office campus developed by Forest City, in Cambridge, Massachusetts.
The gross redemption price was $573.5 million, less Health Care REIT's 49 percent of the outstanding debt on the properties. Net of debt and other closing adjustments, the net redemption price was approximately $380 million.
"We're pleased to have completed this important acquisition," said David J. LaRue, Forest City president and chief executive officer. "University Park is one of our most valuable and productive urban, mixed-use projects. Acquiring 100-percent equity ownership of these assets not only gives us greater control and flexibility, but also enhances our ability to create shareholder value. The transaction aligns with our strategy of concentrating our investments in high-quality assets in key urban markets, reduces the number of operating assets we own through joint ventures, and both strengthens and simplifies our portfolio."
University Park is a 27-acre, mixed-use campus developed by Forest City immediately adjacent to the Massachusetts Institute of Technology in Cambridge. The project includes ten life-science office buildings (including one under construction) totaling more than 1.7 million square feet, as well as 530 apartment units in four multifamily properties. Park amenities include a landscaped commons, a 210-room hotel, a grocery store, restaurants and neighborhood retail. MIT is the ground lessor for the entire University Park project.
The seven buildings included in this transaction are 26 Landsdowne Street, 64 Sidney Street, 35 Landsdowne Street, 40 Landsdowne Street, 45/75 Sidney Street, 65/80 Landsdowne Street, and 88 Sidney Street.
Corporate Description
Forest City Enterprises, Inc. is an NYSE-listed national real estate company with $8.8 billion in total assets. The company is principally engaged in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States. For more information, visit www.forestcity.net.
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SOURCE Forest City Enterprises, Inc.
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