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Brookfield Fund acquires Forest City Realty in deal valued at $11.4 billion

Brookfield Property Group agreed to acquire Forest City Realty Trust in a deal valued at $11.6 billion, the two companies announced Tuesday.
Credit: Screenshot, @jujubee453

Brookfield Property Group agreed to acquire Forest City Realty Trust in a deal valued at $11.6 billion, the two companies announced Tuesday.

The deal includes all of Forest City’s shares of common stock including debt.

According to a press release, the deal is expected to close in the business’ fourth quarter.

Forest City Realty has severed as a iconic name in the Cleveland business community for nearly 100 years.

Since its founding in 1920, the business has expanded to include 18,500 Multifamily Units and 10.8 Million Square Feet of Prime Office, Life Science and Retail Space in Major Cities in the U.S.

Brian Kingston, Chief Executive Officer of Brookfield Property Group, said, “Forest City has created a high-quality portfolio of operating and development assets over its 100-year history. We look forward to creating further value in these great assets on behalf of our limited partners.”

We are pleased that Brookfield recognizes the success of our ongoing efforts to strengthen the business, the attractiveness of our office, apartment and mixed-use portfolio, the skill and dedication of our associates, and the significant opportunities to drive future growth embedded in our more than 18 million square feet of entitlements," said David LaRue, President and Chief Executive Officer of Forest City.

He continued, " We believe that this transaction will deliver an immediate cash premium to stockholders for their investment and represents the best path forward for our company and our stockholders.”

Mayor Frank Jackson issued a statement, Wednesday in regards to the sale saying that the city looks forward to working with the Brookfield Property Group and building on Forest City's positive impact.

"Forest City Realty Trust has had a long history and played a significant role in the development of Cleveland. They’ve grown from a small lumber company to a large Cleveland business and then to a national real estate developer. The Ratner and Miller families continue to be an instrumental part of our city’s civic life, supporting health institutions, education, arts and more. Cleveland would not be what and who we are today without the Ratner and Miller families and Forest City. We look forward to working with the Brookfield Property Group and building on Forest City’s positive impact in Cleveland.”

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