Brookfield in talks to buy Forest City

Negotiations are ongoing

New York /
Jan.January 31, 2018 12:30 PM

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


Related Articles

arrow_forward_ios
Hamptons businesses desperate for workers
Hamptons businesses desperate for workers
Hamptons businesses desperate for workers
(iStock)
Job recovery sputters, but hospitality & leisure add hiring
Job recovery sputters, but hospitality & leisure add hiring
Cushman & Wakefield CEO Brett White (Cushman)
Cushman eyeing M&A opportunities post-pandemic
Cushman eyeing M&A opportunities post-pandemic
Andrew Yang (Getty, iStock)
Yang targets vacant lots with $900 million tax plan
Yang targets vacant lots with $900 million tax plan
Ron Burkle and Andrew Zobler with The NoMad New York. (Google Maps, Getty)
NoMad Hotel heads back to the auction block
NoMad Hotel heads back to the auction block
Donald Trump and 40 Wall Street (iStock, Sterlfilms/Wikimedia)
40 Wall’s valuation chop means tax savings for Trump Org
40 Wall’s valuation chop means tax savings for Trump Org
Google CEO Sundar Pichai (Getty, iStock)
Google’s hybrid model will allow 20% of employees to work remotely
Google’s hybrid model will allow 20% of employees to work remotely
Illustration of Amazon's Jeff Bezos (Photo illustration by Kevin Rebong for The Real Deal)
No room in the warehouse: Amazon fuels shortage
No room in the warehouse: Amazon fuels shortage
arrow_forward_ios

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

Loading...