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Madison to acquire 51% stake of Forest City in NYC Portfolio for $1bn

RBR Staff Writer Published 22 September 2017

Madison International Realty has signed an agreement with Forest City Realty Trust to acquire the latter’s 51% stake in its retail portfolio in Manhattan, Brooklyn, Queens, the Bronx, Staten Island and Northern New Jersey, collectively called NYC Portfolio, for $1bn.

Madison already holds a 49% stake in the 2.1 million ft2 prime retail portfolio of 12 assets.

The move is in line with Forest City's announcement in August 2016 to explore strategic alternatives for its regional mall and urban infill retail portfolios.

Madison has roped in Cushman & Wakefield as the third-party property management and leasing team for the NYC Portfolio. Madison also plans to redevelop Atlantic Terminal Mall and Atlantic Center, located near the Barclays Center Arena.

Madison president and founder Ronald Dickerman said: “This transaction is strategic for both Madison and Forest City, and fits well with our investment strategy of executing large scale equity investments to create ‘win/win’ outcomes for our partners and investors.

“The retail centers in the NYC Portfolio are in densely-populated, well-trafficked areas that offer significant opportunity for continued value creation We are pleased to have assisted our partner, Forest City, in accomplishing this important milestone.”

The acquisition will be funded through follow-on investment from the existing investors in the NYC Portfolio.

The transaction is expected to be completed in the fourth quarter of 2017.

Madison provides liquidity to real estate investors worldwide. It invests in secondary transactions and focuses on existing properties and portfolios in the US, the UK and Western Europe. It has offices in New York, London and Frankfurt.

Image: Madison to buy 51% stake of Forest City in NYC Portfolio for $1bn . Photo: courtesy of Forest City Realty Trust.