Forest City considers merger amid activist investor pressure

Jonathan Litt has been pushing for a sale

New York /
Sep.September 11, 2017 06:30 PM

Forest City Realty Trust is considering a shakeup of the company, including a possible merger or sale of its assets, amid pressure from an activist investor.

The Cleveland-based company said in a statement Monday that it “has commenced a process to consider a broad range of alternatives to enhance stockholder value, including, but not limited to, an accelerated and enhanced operating plan, structural alternatives for the company’s assets, and potential merger, acquisition or sale transactions.”

The company, whose New York subsidiary is currently co-developing the Pacific Park megadevelopment in Brooklyn, has already made several changes to the company over the past year. In December, cousins Bruce and Charles Ratner resigned from the company’s board and the REIT scrapped a dual-share structure that gave the Ratner family voting control. Earlier this year, Forest City sold its affordable housing portfolio to Jonathan Rose Companies and its stake in a New York City retail portfolio to Madison International Realty. And over the summer, it scrubbed the Ratner name from its New York subsidiary, changing it from Forest City Ratner Companies to Forest City New York.

But activist investor Jonathan Litt has been pushing for further changes and said in April that Forest City would get several bids if it put itself up for sale, Bloomberg reported. The Real Deal recently broke down the challenges facing Pacific Park, which Forest City is developing in partnership with Greenland Group. [Bloomberg] — Konrad Putzier


Related Articles

arrow_forward_ios
1 North Moore (Google Maps, StreetEasy)
Tribeca penthouse rents for $85K per month, possibly setting NYC record
Tribeca penthouse rents for $85K per month, possibly setting NYC record
Hudson Yards (Getty, iStock)
City’s bet on Hudson Yards beginning to pay off
City’s bet on Hudson Yards beginning to pay off
VTS CEO Nick Romito and Lane Technologies CEO Clinton Robinson 
VTS to buy office-app developer for $200M
VTS to buy office-app developer for $200M
From left: Marisa Lago, Anita Laremont and Mayor Bill de Blasio (LinkedIn, Getty, Wikimedia)
Politics, City Planning on collision course
Politics, City Planning on collision course
Hudson’s Bay Company restructures $846M CMBS loan
Hudson’s Bay Company restructures $846M CMBS loan
Hudson’s Bay Company restructures $846M CMBS loan
Two of the eleven properties under threat of foreclosure (Google Maps)
Mack Real Estate may “strip” club owner of properties
Mack Real Estate may “strip” club owner of properties
270 W Montauk Hwy, Hampton Bays, NY (Loopnet)
Legendary Hampton Bays bar up for sale
Legendary Hampton Bays bar up for sale
Senator Chuck Schumer and 70 Prospect Park West (Google Maps, Getty)
Schumer blasts Brooklyn landlord as NY pols vow to pass good cause eviction
Schumer blasts Brooklyn landlord as NY pols vow to pass good cause eviction
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...