The Real Deal New York

Brookfield in talks to buy Forest City

Negotiations are ongoing
January 31, 2018 12:30PM

Brookfield Asset CEO Bruce Flatt and Forest City’s David LaRue

Brookfield Asset Management is reportedly in talks to buy Forest City Realty Trust, signaling a somewhat expected shift in the company’s growth strategy.

According to Bloomberg, the discussions are ongoing and could still fall apart. The purchase price is not much more than the rate at which the REIT’s stock is currently trading, which was at $23.95 just before noon on Wednesday, Bloomberg reported.

The news comes as Forest City continues its move away from ground-up development. Earlier this month, the REIT reduced its stake in the Pacific Park megaproject to 5 percent and also laid off 20 of its Brooklyn office staffers.

The REIT floated the idea of a potential sale or merger in September, after activist investor Jonathan Litt, founder of Land & Buildings Investment Management, pushed for the sale of the company in a letter. Other bidders, aside from Brookfield, may emerge.

Representatives for Forest City declined to comment when reached by The Real Deal.

Brookfield recently made another play to buy the 66 percent of General Growth Properties that it doesn’t already own. But GGP rejected the firm’s $14.8 billion buyout offer in December. Brookfield reportedly is working on restructuring its offer. [Bloomberg] — Kathryn Brenzel